The shares of Aberdeen International Inc. (TSE:AAB), (PINK:AABVF) went up with a price-gap on the Toronto Stock Exchange (TSE) yesterday after the company released its annual financial results for the year ended Jan. 31, 2011. The trading activity of the stock was also boosted and exceeded three times the average on the Canadian market.
AAB ended the session at $0.89, or 8.5% up, on a turnover of 818K shares. Almost the same performance was witnessed on the American OTC Market, where the stock gained 7.5% to close at $0.943. The volume of 606K shares was a one-year high for AABVF trading activity.
- a solid cash position of over $14M in the end of January and a working capital of $114.6M ;
- a sizable net income of $34.8M for the mentioned fiscal year;
- as at Jan. 31, 2010 the shareholders’ equity was $136.3M, or $1.57 per share – a rise of $20.8M over the previous quarter levels. As stated in the release, the increase was due mainly to the “exceptional” performance of Aberdeen’s investment portfolio. This was thanks to the good market performance of small capitalization mining stocks, which make the bulk of the investment portfolio.
As it seems, the corporation enjoys good earnings and financial stability. It also seems that the positive trends will persist in the future unless something dramatic happens. Among the most successful companies in Aberdeen’s portfolio are Allana Potash Corp., Belo Sun Mining Corp., Avion Gold Corporation and others.
On the other hand, the corporation operates in a rather risky sector – Aberdeen is a global investment and merchant banking enterprise with a focus on small-cap companies in the resource sector. Of course, there is no guarantee that the firms included in Aberdeen’s portfolio will continue to be as much successful in the future. This holds especially true for the mining stocks – they have their periodic ups and downs.
As a final note, we could mention that Aberdeen is one of the not so many Canadian companies that pay dividends to their stockholders.
