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Inv Reporter says buy Intertape Polymer

2014-10-31 18:06 ET - In the News

The Investment Reporter, in its Oct. 24, 2014, issue, says buy Intertape Polymer Group Inc., recently $15.54. The Reporter said buy six times from March 19, 1996, to Jan. 27, 2006, at prices ranging from $10 to $50 (the stock split 2 for 1 in May, 1996). It then said tender to Littlejohn & Co.'s offer in May, 2007, but the takeover fell through. It again said buy on Dec. 7, 2012, at $7.82. A $1,000 investment for each of the seven buys is now worth $7,132. Thanks to its recovering profits, Intertape recently increased its dividend by 50 per cent to 48 U.S. cents a share, for a yield of 3.5 per cent. This likely reflects management's high share ownership, making its interests similar to yours. Excluding one-time items, the paper packaging company earned $26.3-million (U.S.) or 42 U.S. cents a share in the first half, down from $33.3-million (U.S.) or 54 U.S. cents a share last year. Sales rose by 3.3 per cent to $403-million (U.S.) on higher prices and sales volumes. The plunge in the price of oil will likely raise its profit margins, says the Reporter. Intertape expects to earn $1.11 a share in 2015, giving it a reasonable P/E ratio of 14 times. It remains a buy for gains and dividends.

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