TSX Group


Just a quick update on my portfolio. I accumulated more shares to my existing TSX Group position today. The stock is down recently, because first-quarter profits of $0.53/share miss the consensus estimate by 3 cents.

I don’t mind it as long as revenues are up 15% on stronger listing and market data revenues. The drop in profits is attributed to raising costs, but it is not wasted money:

Expenses jumped 29 percent to C$47 million, due in part to additional employees taken on after the acquisitions of Shorcan Brokers Ltd. and certain fixed income assets from Scotia Capital last year.

Also boosting costs were advisory fees related to joint ventures TSX entered into with the International Securities Exchange Holdings Inc. and IntercontinentalExchange Inc. during the first quarter.

“While we continue to aggressively manage our cost base, we’re not going to hesitate to invest in initiatives that we believe will grow the business over the long term,” TSX Chief Financial Officer Michael Ptasznik said on a conference call.

TSX Group is the operator of Toronto Stock Exchange and TSX Venture Exchange. TSX Group has a consistent history of rising dividends, and is one of the few non-financial companies with 3+% yield.

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Comment Number:
1
Written by:
moneygardener
Posted on:
May 1, 2007 at 9:59 pm

I don’t follow the stock but I know it’s good one. Probably a wise move adding to it when it’s down over 2% YTD and is over 10% off it’s yearly 52 week high.

As you know, I have been hesitant to get involved because I don’t have a position, and I would rather get one started in a bear tsx market than a bull….

Comment Number:
2
Written by:
Financial Jungle Guy
Posted on:
May 1, 2007 at 11:13 pm

That would be nice. I still remember the summer correction from last year. Let me confess. There were SO many good deals then that I adopted the “buy first and ask questions” later approach. :D

Outside of a big correction, I tend to average in with mini purchases when they’re reasonably cheap instead of waiting for the one home run pitch.

Comment Number:
3
Written by:
Monty Loree
Posted on:
May 2, 2007 at 3:38 am

Hi Financial Jungle,
Thanks for participating in the Canadian Tour of Personal Finance blogs on May 7.

Please do take a moment to write a little post to promote the tour on your blog. You can find promotional banners here.

This is going to be another great event!

Best,

Comment Number:
4
Written by:
Wolf Stone
Posted on:
May 2, 2007 at 3:31 pm

Hello Financial Guy,
Thanks for visiting my blog, i really like your blog (Simple layout and concise posts) and will be frequenting it in the future!! Good Luck…

Comment Number:
5
Written by:
Financial Jungle Guy
Posted on:
May 2, 2007 at 3:56 pm

Monty Loree: Yup, I put up a post on April 30 already. It’ll be a lot of fun, but I’m a bit nervous. The blog is getting more traffics yesterday, and may have to do with my partipation. I want to be famous! (But not too famous)

Wolf Stone: You have a great blog. I copied a few ideas from you. Imitation is flattery :P