First Stock Purchase Of The Year

exco-logo

Hey folks I finally purchased my first stock of the year. On March 7, 2017 I purchased Exco Technologies Limited (Ticker: XTC) for my Registered Retirement Savings Plan (RRSP) account.

About Exco Technologies Limited

Exco is a global designer, developer and manufacturer of dies, moulds, components and assemblies, and consumable equipment for the die-cast, extrusion and automotive industries. The Company reports in two business segments Casting and Extrusion, and Automotive Solutions.

Casting and Extrusion 

The Casting and Extrusion segment designs, develops and manufactures die-casting and extrusion tooling and consumable parts for both aluminum die-casting and aluminum extrusion machines. Operations are based in North America, South America and Thailand and serve automotive and industrial markets around the world. The Canadian, European, South American and United States markets are Exco’s primary focus for die-cast moulds, extrusion dies and machine consumable parts. In 2014 the company opened a new factory in Thailand in an effort to better penetrate the Asian market for those products.

Automotive Solutions

The Automotive Solutions segment designs, develops and manufactures automotive interior trim components and assemblies primarily for passenger and light truck vehicles. The segment is made up of five businesses:

  1. Polytech
  2. Polydesign
  3. Automotive Leather Company
  4. Neocon
  5. AFX Industries

Polytech and Polydesign businesses manufacture synthetic net and other cargo restraint products, injection-moulded components, shift/brake boots, related console components and assemblies. Polydesign  is also a manufacturer and/or finisher of injection moulded interior trim and instrument panel components, seat covers, head rests and other cut and sew products. Automotive Leather Company  is a manufacturer of leather/fabric seat covers for automobile interiors. Neocon is a supplier of soft plastic trunk trays, rigid plastic trunk organizer systems, floor mats and bumper covers. AFX Industries is a tier 2 supplier of leather and leather-like interior trim components to the North American automotive market. AFX supplies die cut leather sets for seating and many other interior trim applications as well as injection-moulded, hand-sewn, machine-sewn and hand-wrapped interior trim components of all sorts.

The Automotive Solutions segment has manufacturing facilities in Canada, the United States, Mexico, Bulgaria and Morocco.

Sales

Sales Exco continue to increase year over year. Last year sales increased $90.7 million or 18%. $66.9 million of this was from the purchase of AFX Industries and that is only for six months of 2016.

Segment Sales For 2016

In 2016 the Automotive Solutions had sales of $396.8 million, and The Casting and Extrusion segment had $192.2 million.

Geographic Sales

Net Income

Earnings Per Share

Dividends

Exco has increased it’s dividend for the last 11 years, earlier this year they increased it 14% and will now pay $0.08 quarterly. Exco has a low payout ratio of 29% leaving them plenty of room to continue to raise the dividend for the next few years.

Transaction Details

On March 7th, I purchased 100 shares @$12.40 a share. My trading cost was $9.99 so my total cost for the purchase was $1249.99.

Forward Income

This purchase will boost my forward income by $32.

Well there you have it my first stock purchase of the year. So what do you think? Please let me know I always value your opinion and comments. Also please share I always appreciate that.

Thanks for reading

Matthew

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11 thoughts on “First Stock Purchase Of The Year

  1. Congrats on making your first purchase of the year. Im not familiar with the company but with based on their metrics – especially such a low payout ratio – seems like they have some room to run. Must feel good to get on the board in ’17!

    Liked by 1 person

  2. Lately, I haven’t been venturing far from large cap companies as I have been revamping my portfolio with large cap stocks. I have added: BCE, MRU, IPL just to name a few. I just want to collect dividends now and do less work.

    Liked by 1 person

    1. That is a very good strategy. Those are some very good companies you mentioned. I think I might spend more time investing in the stocks I already own instead of starting a new position.

      Like

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