Richards specializes in servicing small- and medium-sized companies, offering glass and plastic manufacturing and distribution services. The company is well diversified, with 48% of revenue from food and beverage and other manufacturing, 29% from cosmetics, and 23% from healthcare. Geographically, 60% of its sales are in the U.S. and 40% in Canada.
Income Investor
We recommended taking half profits when the stock price neared $60 on the run-up in Covid related sales in early 2021. Restoring Richards as a Buy last year did not work out, due primarily to the persistent oversupply in cosmetics and food-and-beverage sectors depressing sales. With two special dividends in March 2022 and 2023 (total $1.07), the ordinary $1.32 annual dividend, and the half profits, we’re ahead over 35%. It’s time to Sell. - Gavin Graham
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RPI.UN was first recommended here on February 29, 2020