TFSL reported record earnings of $30.5m in the third quarter. They’ve purchased 355,241 shares over the last nine months at an average cost of $14.07 (glad to see they are happening, wish they’d done more back when the stock was around $13). The stock is now trading at its highest level in ~5 years.
I think I’ve calculated the Price to Partially Converted Tangible Book Value correctly (from @XMFRoyal’s Zen book) - hovering right at 50%.
I bumped TFSL up to a 10% position in my portfolios at $12/share in the aftermath of “Liberation Day”. It’s a significant chunk of my retirement income.
I also wanted to share that the other day, by 19yo daughter was entering her investment transactions into Quicken and her eyes popped when she saw the amount of her TFSL dividend. Her brokerage account includes some TFSL shares that I bought for her custodial account in 2012 and 2013. I showed her how the dividends she’s received in that time exceed her cost basis. While the position isn’t beating the market (annualized 8% including dividends), it does provide a bit of stability compared to some of the other more exciting positions.
Cheers!
-Matt
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Yes, P/PCTBV is just a hair over 50%, with PCTBV coming in at $36.71 per share.
Their buybacks are basically just offsetting, though not fully, their stock compensation, unfortunately.
On the plus side, the newly increased dividend is a positive.
The stock looks pretty high, given its historical valuation. We’ll see if it can stay up this high and for how long.
That dividend is great to receive, though.
Best,
Jim
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Yes. I came on to talk about the earnings and stock price as well. The price is certainly high versus recently. It hasn’t been this high in a long time. However I will say $0.11 /share in earnings is the highest level in quite some time. Not sure if the earnings are kind of a one time thing, or just getting better. But growing earnings, a high dividend and a nice cushion in price versus value makes it not unfairly priced. Having said that I have been selling trading shares for a while during the increase.
Not sure if selling at this price is smart or not. I do like the diversification I get when I also own quite a bit of growth stocks. It gives me a little ballast to my portfolio.
Randy
Long TFSL
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At one time, you could ride the stock up from 15 to 20 and sell and wait for it to head back down. RInse and repeat. I’m like you, don’t want to sell even though it feels like it could be the right time to do so. Of course, I hesitated and didn’t buy in the 13s either so what do I know?
VInnie G
