TWO CERTAINTIES

Jul 6th, 2009 – Comment

  Hi Lou, Any opinion or info on Keystone North America (KNA on TSX), a funeral service company operating in Ontario & U.S. ( apparently 5th largest in U.S.),currently trading under $5 on TSX & historically has ALWAYS paid a 7 ct. dividend per share per month for at least the last 10 years, effectively […]


About the Author

Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


Read the author's full profile.


Further Research

Read more about Funeral Services.


last1

 

Hi Lou,
Any opinion or info on Keystone North America (KNA on TSX), a funeral service company operating in Ontario & U.S. ( apparently 5th largest in U.S.),currently trading under $5 on TSX & historically has ALWAYS paid a 7 ct. dividend per share per month for at least the last 10 years, effectively yielding now better than a 15% return on investment.

Thanks,

Allan

p.s enjoy your radio spots daily (was that really you singing “I’m An Old Cowhand”?….what a set of pipes!!

 

Hi Allan,

Yes that was me doing my best impression of The Singing Cowboy in honor of this years edition of the Calgary Stampede. If you want to hear it again you can go to the AM640 website and click on the Lou Schizas Audio for July 3, 2009 at 8:55.  “I’m An Old Cowhand” was made popular by Bing Crosby.

Keystone North America Inc. (KNA TSX) is a provider of funeral services with 200 Funeral Homes and 15 cemeteries in 31 U.S. States and the Province of Ontario. The company takes a conservative approach with its trust funds used to cover prepaid services with only 16% invested in equities and the bulk in bank cd’s and government bonds.

 

Keystone makes the major part of its revenue from funeral services and has a lower exposure to cemetery cost compared to their competition. As to the payment history of the dividends I found a monthly payment history going back to 2005 on the KNA website.  But lets agree that dividends or distributions are declared by the board not guaranteed.

kna1

The chart shows that the downtrend that started in September of 2008 has been reversed and that stock has made a nice advance since late December of 2008.

 

 

 

 

 

kna2KNA hit resitance in mid June of this year as investors pulled back from an overbought situation as indicated by the RSI and the MACD turned lower. At this point we would want KNA to hold on to support in the $4.70 to $4.80 range.

I think the business model for Keystone North America is fundamentally sound. They provide services to families in times of need. They manage their trust funds and business conservatively and seem well positioned in their sector.

Watch the charts daily for indications of a reversal to the uptrend and be aware of the recent trend of a drop in deaths as reported across the industry. A mild flu season, better health care, and fewer births in the 1930′s might account for some of the drop but eventually it will come to us all.

 

Long Life and Happy Capitalism!

Categories: Funeral Services
Content © Relentless Economics - Charts courtesy Stockcharts.com - Employees Entrance - Optimization Media