Cambridge is an investment company ...

Cambridge is an investment company operating in the retail real estate business since 1960 It avows and manages 36 regional shopping middle points in Canada; has interests in 31 self-storage properties and a 50 % interest in Donahue Schriber, which exhibits and manages shopping centres in the southwestern United States. At the time the stock was studied in the July/August 1991 issue, its shares were trading at $2675

For the five fiscal years ending March 31 1991 Cambridge's returns had been growing at approximately 16% while cash issue per share ("CFPS") grew at 8% Subsequently returns grew at 2% and CFP declined steadily from $216 in 1991 to $070 in 1996

Cambridge's stock price followed its CFP vegetation and declined to the $10 flush in 1992. Subsequently, the stock rallied to the $20 on a level in early 1994 and then turn backed to the $ 10 even in 1996. As well, the company intersect its annual dividend from $060 to $046 in 1993 and to $032 in 1994 by means of 1996.

Cambridge is a advantageous example of the need to distinguish between a stock that is: (1) a 'true' pullulation stock; and, (2) a cyclical stock not long ago experiencing the positive-growth phase of its period Even though CFPS had been growing during the entire contemplation period (since 1982), Cambridge's putting out was `cyclical growth' since the bottom of the last real estate period The first question that an investor must ask about a stock is: "Is this a sprouting or a cyclical company?" Chapter 9 of the Stock Selection Manual describes the significantly different interpretation of data that must be give employment toed when studying a cyclical stock.

Copyright Canadian Shareowner Magazine Inc. Jul/Aug 1996

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