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Am I missing something, or is yahoo wrong?

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January 06, 2011 – Comments (26) | RELATED TICKERS: MSB

I am looking at MSB.  Forward P/E of 12, dividend of 9.2% (!!!!), Profit margin near 100%, ROA of 180%, ROE of 1100%, Quarterly rev growth of 130% (same with earnings), 13 mill in cash and 0 debt...wtf, why is it so cheap?  The MFI is at 13.57...it may bounce hard soon.

26 Comments – Post Your Own

#1) On January 06, 2011 at 3:15 PM, SockMarket (38.47) wrote:

the answer is probably yes. That seems WAY too good to be true, and Yahoo usually does a pretty bad job on trusts/funds/ETF's info.

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#2) On January 06, 2011 at 3:18 PM, JaysRage (89.41) wrote:

Yahoo is wrong ALL THE TIME.   Don't use it for your metric calculations. 

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#3) On January 06, 2011 at 3:24 PM, TheDumbMoney (49.79) wrote:

Jays or Sock, what are your favorite sources?  I'll give another example of Yahoo being wrong.  At some point recently I looked up I think it was PBR and Yahoo had not accounted for the recent stock split, making the shares look something like four times too valuable on a cash flow per share basis.

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#4) On January 06, 2011 at 3:54 PM, Valyooo (99.39) wrote:

I am also interested in what you guys use for metrics

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#5) On January 06, 2011 at 4:11 PM, EnigmaDude (86.69) wrote:

Those metrics look right according to what Scottrade is reporting.  You have to keep in mind that MSB is not a typical stock - its more like an REIT.  So some of those metrics may be misleading.  However, I do believe that it is a strong buy at the current price.  It had a big run up recently so its not surprising that it is coming back down a bit.

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#6) On January 06, 2011 at 4:24 PM, JaysRage (89.41) wrote:

I use my trading platform (TD Ameritrade), and when that isn't up-to-date, which happens with quite a few of the micros that I analyze, I go back to the quarterly reports and I calculate them myself.  

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#7) On January 06, 2011 at 4:28 PM, Valyooo (99.39) wrote:

Cool, good stuff. If they are reported correctly and you are bullish on copper and steel, wow, this is a great buy.  And since I am in a low tax bracket, the fact that its a REIT does not really effect my decision making.

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#8) On January 06, 2011 at 4:32 PM, JaysRage (89.41) wrote:

With REITs, typical metrics aren't the ones to look at, so be careful.   It's been a few years since I did the REIT thing, but there are particular (different from traditional investing) metrics that are more important.   The divvys can look attractive, but pay attention to the debt.....etc.  

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#9) On January 06, 2011 at 5:04 PM, Valyooo (99.39) wrote:

It has zero debt, with a great dividend and good underlying commodities and is an a technically oversold condition, and it was recently 38% higher.  Once it stops dropping like a rock, I think that info alone makes it a buy.

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#10) On January 06, 2011 at 5:11 PM, JaysRage (89.41) wrote:

Geez, I may take a peak myself if I can spare a few minutes. 

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#11) On January 06, 2011 at 5:17 PM, truthisntstupid (91.85) wrote:

valyooo

Is it an equity REIT or a mortgage REIT?

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#12) On January 06, 2011 at 5:21 PM, Valyooo (99.39) wrote:

equity

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#13) On January 06, 2011 at 5:22 PM, Valyooo (99.39) wrote:

I guess that is what you would consider it....it makes money off of royalties from the shipping of pellets of a subsidiary...the company is increasing production too, btw.

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#14) On January 06, 2011 at 6:49 PM, Melaschasm (54.63) wrote:

A company that makes money from royalties will often have misleading statistics.

For example profit margin is going to be goofy since they have almost no expenses. 

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#15) On January 06, 2011 at 7:07 PM, Valyooo (99.39) wrote:

True.  What metrics do I use?  Dividend, growth rate, underlying industry, location and debt?

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#16) On January 06, 2011 at 7:22 PM, NOTvuffett (< 20) wrote:

Yahoo Finance is a handy site, but I see incorrect numbers there on a regular basis.  Don't pull the trigger according to yahoo.

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#17) On January 06, 2011 at 7:31 PM, SockMarket (38.47) wrote:

in answer to valy and dtaf:

I use yahoo :). Well really I use yahoo and Google finance in tandem. I mostly investigate large caps so yahoo is pretty good for info. Also I only use them for what I can't easily get from google, namely:

- PE (its faster on yahoo)

- MktCap

- ROE and ROA

- Book value

Other than that it is Google or MSN; occasionally Forbes or Ycharts.

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#18) On January 06, 2011 at 7:52 PM, truthisntstupid (91.85) wrote:

It sounds worth looking into.   I'm gonna see what Morningstar.com, and S&P have to say about it.

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#19) On January 06, 2011 at 8:07 PM, Seano67 (27.29) wrote:

MSB is a very strange beast in my opinion. It's up and down like a roller coaster, and its dividend is all over the place on a quartely basis too. You might get a 12.5 cent dividend as in Q3 2010, or a $1.25 payout as in Q4 2008, and its dividend has historically been wildly inconsistent like that.

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#20) On January 06, 2011 at 9:28 PM, truthisntstupid (91.85) wrote:

#19 One of the articles listed at its CAPS quote page explain the volatility of its dividend as its earnings are dependent on the fluctuating value of the underlying commodity.

It sounds like every time you get a dividend check, it's always going to be a surprise.  It might be good, but not for someone like me that wants a regular consistent dividend payment. 

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#21) On January 07, 2011 at 4:15 PM, Seano67 (27.29) wrote:

#20  Yeah. That's what I was thinking, Truth. For people like yourself and others who rely on a steady, reliable, and hopefully steadily growing dividend or distribution, MSB might not be the ticket for that.

Plus it's volatility in share price is so strange for a trust, in fact I've never seen a trust with that much volatility inherent to it. It is a strange one.

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#22) On January 07, 2011 at 5:34 PM, guiron (23.30) wrote:

It's correct, although the payout isn't consistent each quarter. Even so, you usually end up with a very good yield over the course of a year. I bought on the way up at $38, traded in and out a couple times and have been buying this on the way down. As long as it holds support OK I'll stick with it until it goes up again, but there's always a chance iron prices will fall off a cliff and the price of MSB will follow. It is kind of a wild stock, but like a lot of commodity-based stocks it's highly volatile and fun to trade, and if you keep a core position you always get a dividend when the time rolls around. The high payout is due to the fact it's a trust and by design has to pay out most of what comes in.

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#23) On January 07, 2011 at 6:49 PM, Seano67 (27.29) wrote:

Hi Quiron. It's nice to hear from someone who actually holds this stock, as I've just watched it. I've considered buying in from time to time, but just never quite pulled the trigger on that one. It is a very interesting stock. The volatility is made even crazier in my opinion by the fact that it's usually accompanied by little to no news that would drive such big gains or declines, and lately it's been on a pretty steep declination, which is a nice thing for people wanting to buy in I suppose.

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#24) On January 09, 2011 at 9:10 PM, summitclark (24.44) wrote:

MSB is an iron ore resource royaty company so its disbustments of divident vary greatly with the spot price of iron ore.

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#25) On January 10, 2011 at 3:39 PM, JaysRage (89.41) wrote:

I ended up doing a little bit of research into this one and realized that it is a commodity royalty.    These really tend to move up and down with the commodity itself, and isn't significantly different than investing in the underlying commodity itself, with some differentiation between the quality of the management, how much of the resource is available,  underlying assets, etc....etc.    They end up returning almost all of the profits in cash (by law), so there is limited to minimal growth in most cases.  Revenue growth is usually due to commodity appreciation, and if the commodity goes down, revenues follow.    

This is not my genre of investing.   I'd prefer to find a company that is using its profits from producing a commodity (ideally one in high demand) to grow its business substantially.  

LLEN and PUDA are examples of this scenario.  

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#26) On January 11, 2011 at 12:35 AM, Valyooo (99.39) wrote:

Well yeah, equities in general tend to be better than high yield investment vehicles

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