This report should not be construed as providing investment advice. It is for educational purposes only.  Before making any investment decision, you should always do your own research or consult a investment professional.        
See my website on stocks or see my blog at the following sites.  www.spbrunner.com/stocks.html www.spbrunner.blogspot.com/
Davis & Henderson Income Fund www.dhltd.com     DHF.UN   Fiscal Yr: Dec 31                            
Year 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11     #Y              
Revenue*     $232.3 $251.8 $275.6 $276.5 $318.0 $369.7 $367.2 $481.8       107.40% <-Total Growth 7 Revenue            
Increase       8.39% 9.45% 0.35% 14.98% 16.28% -0.67% 31.19% <----     10.98% <-IRR #YR-> 7 Revenue            
Rev per Share     $6.13 $6.64 $7.27 $7.29 $7.24 $8.41 $8.36 $9.05       11.82% <-IRR #YR-> 5 Revenue            
Increase       8.39% 9.45% 0.35% -0.78% 16.28% -0.67% 8.30% <----                        
P/S (Price/Sales)     2.10 2.61 3.12 3.18 2.14 2.50 2.01 1.87       5.73% <-IRR #YR-> 7 Rev per Share            
Averages         P/S 10 Yrs 2.44 5Yrs 2.34       4.49% <-IRR #YR-> 5              
*Revenue in M CDN $                                             
      -$232.3 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $481.8                          
          -$275.6 $0.0 $0.0 $0.0 $0.0 $481.8                          
      -$6.1 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $9.1                          
          -$7.3 $0.0 $0.0 $0.0 $0.0 $9.1                          
               
EPS*       $1.28 $1.43 $1.60 $1.61 $1.87 $1.79 $1.98 $2.08 $1.65   55.02% <-Total Growth 6 Earnings            
Increase         12.00% 11.94% 0.38% 16.37% -4.61% 10.96% 5.01% -20.67%   7.58% <-IRR #YR-> 6 Earnings            
* ESP per share (Cdn GAAP)                       6.72% <-IRR #YR-> 5 Earnings            
        -$1.28 $0.00 $0.00 $0.00 $0.00 $0.00 $1.98                          
          -$1.43 $0.00 $0.00 $0.00 $0.00 $1.98                          
                                               
Sp Div               $0.20 $0.04 $0.00 $0.00 $0.00         Special Divs            
Div*     $1.32 $1.36 $1.40 $1.45 $1.50 $1.60 $1.80 $1.84 $1.84 $1.20   39.36% <-Total Growth 7 Reg Divs            
Increase       3.02% 3.27% 3.25% 3.45% 6.53% 12.54% 2.29% 0.00% -34.77%   4.91% <-Average 7 Reg Divs            
Aver H/L   $10.32 $11.57 $14.95 $19.45 $20.59 $18.34 $18.15 $16.70 $13.81             Stock price            
Yield H/L     11.41% 9.10% 7.22% 7.04% 8.18% 8.81% 10.77% 13.32%       9.48% <-Average 8 Reg Divs            
Yield on Cl     10.26% 7.84% 6.19% 6.25% 9.70% 7.61% 10.71% 10.87% 10.82% 7.06%   8.68% <-Average 8 Reg Divs            
Payout Ratio       106.4% 98.1% 90.5% 93.3% 96.1% 103.0% 92.9% 88.4% 72.7%   97.18% <-Average 7 All Divs            
Payout Ratio CF     68.9% 75.2% 68.9% 71.6% 73.4% 67.3% 69.6% 81.8% 80.3% 60.0%   72.10% <-Average 8 All Divs            
Average 5 Yrs       Yield  9.62% 9.03% Payout 95.15% 72.74%       4.86% <-IRR #YR-> 7 Reg Div            
* Dividends per share                          5.55% <-IRR #YR-> 5 Reg Div            
      -$1.32 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1.84                          
          -$1.40 $0.00 $0.00 $0.00 $0.00 $1.84                          
                                               
I am earning                 Trading $12.98 2009 9.24%         Reg Divs            
Yield if held 5 yrs 14.53% 13.82% 12.03% 9.46% 8.94% 6.54% Ave H/L Yield on your  Reg Divs  
Yield if held 10 yrs -----> 11.63% Ave H/L original money Reg Divs  
                                               
Graham No.       $16.42 $16.70 $17.83 $19.20 $20.76 $20.27 $21.95 $22.49     Cl Pr higher/lower by?                
Prem /Disc.  Low       -23.58% -3.61% -2.79% -24.91% -27.59% -40.21% -51.24%       -20.45% <-Average 6 Prem/Disc            
Prem /Disc.  Cl       5.65% 35.90% 30.08% -19.49% 1.17% -17.18% -22.90% -24.41% <----   6.02% <-Average 6 Prem/Disc            
                                               
Price Cl   $10.64 $12.86 $17.35 $22.70 $23.19 $15.46 $21.00 $16.79 $16.92 $17.00 $17.00   59.02% <-Total Growth 8 Stock Price            
Increase     20.86% 34.91% 30.84% 2.16% -33.33% 35.83% -20.05% 0.77% 0.47% 0.00%   5.97% <-IRR #YR-> 8 Stock Price            
P/E       13.58 15.86 14.48 9.61 11.22 9.41 8.54 8.17 10.30   -5.71% <-IRR #YR-> 5 Stock Price            
Trailing P/E         17.76 16.20 9.65 13.06 8.97 9.48 8.58 8.17   17.90% <-IRR #YR-> 8 Price & all Div          
Average 5 Yrs       Price Inc Price Inc -2.92% P/E: Y-T 10.65 11.5       2.57% <-IRR #YR-> 5 Price & all Div          
                                               
    -$10.64 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $16.92                          
          -$22.70 $0.00 $0.00 $0.00 $0.00 $16.92                          
    -$10.64 $1.32 $1.36 $1.40 $1.45 $1.50 $1.80 $1.84 $18.76                          
          -$22.70 $1.45 $1.70 $1.64 $1.80 $18.76                          
                                               
Hi Mths   Dec Dec Dec Dec Sep Feb Dec Feb Dec                          
Price Hi   $10.64 $13.00 $17.35 $22.80 $23.84 $22.25 $21.26 $21.28 $16.92       59.02% <-Total Growth 8 Stock Price            
Increase     22.18% 33.46% 31.41% 4.56% -6.67% -4.45% 0.09% -20.49%       5.97% <-IRR #YR-> 8 Stock Price            
P/E       13.58 15.93 14.88 13.84 11.36 11.92 8.54       -5.79% <-IRR #YR-> 5 Stock Price            
Trailing P/E         17.84 16.66 13.89 13.22 11.37 9.48                          
Average 5 Yrs         Price Inc -5.39% P/E: Y-T 12.11 12.9                          
                                               
    -$10.64 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $16.92                          
          -$22.80 $0.00 $0.00 $0.00 $0.00 $16.92                          
                                               
Low Mths     Apr Jan May Oct Nov Jan Oct Mar                          
Price Low   $10.00 $10.13 $12.55 $16.10 $17.33 $14.42 $15.03 $12.12 $10.70       7.00% <-Total Growth 8 Stock Price            
Increase     1.30% 23.89% 28.29% 7.64% -16.79% 4.23% -19.36% -11.72%       0.85% <-IRR #YR-> 8 Stock Price            
P/E       9.82 11.25 10.82 8.97 8.03 6.79 5.40       -7.85% <-IRR #YR-> 5 Stock Price            
Trailing P/E         12.60 12.11 9.00 9.35 6.48 5.99                          
Average 5 Yrs         Price Inc -7.20% P/E: Y-T 8.00 8.6                          
                                               
    -$10.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $10.70                          
                                               
Market Cap   $403 $488 $658 $861 $879 $679 $923 $738 $901 $905           Market Cap            
                                               
              Purchase   Purchase                            
# of Sh in M 37.921 37.921 37.921 37.921 37.921 43.947 43.947 43.947 53.233 53.233 53.233   Trust Units   Shares            
Increase     0.00% 0.00% 0.00% 0.00% 15.89% 0.00% 0.00% 21.13%       4.63% <-Average 8 Shares            
CF fr Op $M 72.6 68.6 77.3 76.8 89.8 117.4 116.1 119.7 $121.90 $106.47   64.90% <-Total Growth 7 Cash Flow            
OPS $1.91 $1.81 $2.04 $2.03 $2.04 $2.67 $2.64 $2.25 $2.29 $2.00 D 17.47% <-Total Growth 7 Cash Flow            
Increase       -5.55% 12.69% -0.55% 0.78% 30.80% -1.14% -14.84% 2.33% <-IRR #YR-> 7 Cash Flow            
P/CF on Cl 6.72 9.60 11.14 11.44 7.57 7.86 6.36 7.52 1.99% <-IRR #YR-> 5 Cash Flow            
Averages     P/CF 10 Yrs 8.53 5 Yrs 8.15                
*Operational Cash Flow per share                      
-$1.91 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $2.25                
-$2.04 $0.00 $0.00 $0.00 $0.00 $2.25                
                                               
OPM 31.25% 27.23% 28.04% 27.79% 28.23% 31.75% 31.60% 24.85%   should be zero, it is a check on calculations                  
Diff from Ave     8.4% -5.6% -2.8% -3.7% -2.1% 10.1% 9.6% -13.8%       0.00% <-Average 8              
*Operational Profit Margin (CF/Revenue) Ratio OPM 10 Yrs 28.84% 5 Yrs 28.84%                          
                                               
Curr Assets     $28.19 $20.76 $25.61 $25.38 $33.25 $39.30 $35.53 $76.67       Liq ratio of 1.5 and up, best              
Curr Liab.     $32.78 $31.14 $34.42 $35.67 $44.42 $49.12 $49.10 $87.46       0.77 <-Average 8              
Liquidity     0.86 0.67 0.74 0.71 0.75 0.80 0.72 0.88       0.77 <-Average 5              
Liquidity - CF     1.55 1.21 1.44 1.32 1.28 1.58 1.44 1.13   <----   Covered by cash flow after dividends            
                                               
Assets     $476.41 $458.84 $430.60 $425.30 $641.05 $634.15 $663.91 $941.56       A/L ratio of 1.5 and up, best              
Liab.     $117.58 $103.12 $102.03 $90.97 $193.18 $184.46 $214.24 $366.26       3.73 <-Average 8              
Asset/Liability     4.05 4.45 4.22 4.68 3.32 3.44 3.10 2.57       3.42 <-Average 5              
                                               
Book Value     $358.83 $355.73 $328.57 $334.34 $447.88 $449.69 $449.67 $575.29 $575.29 $575.29   60.32% <-Total Growth 7 Book Value            
BV per share     $9.46 $9.38 $8.66 $8.82 $10.19 $10.23 $10.23 $10.81 $10.81 $10.81   14.21% <-Total Growth 7 Book Value            
Change       -0.86% -7.63% 1.75% 15.59% 0.41% -0.01% 5.62% <----     0.8222 Current/Historical   Book Value            
P/BV (CL)     1.36 1.85 2.62 2.63 1.52 2.05 1.64 1.57 1.57 1.57 1.92% <-IRR #YR-> 7 Book Value            
Change       36.09% 41.65% 0.40% -42.33% 35.29% -20.04% -4.59% 0.47% 0.00% 4.52% <-IRR #YR-> 5 Book Value            
Leverage (A/BK)     1.33 1.29 1.31 1.27 1.43 1.41 1.48 1.64 0.00 0.00   1.394 <-Average 8 A/BV            
Averages           P/BV 10 Yrs 1.90 5 Yrs 1.88     1.445 <-Average 5 A/BV            
                                   
    -$9.46 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $10.81                          
        -$8.66 $0.00 $0.00 $0.00 $0.00 $10.81                          
                                             
ROE     10.6% 13.6% 16.5% 18.2% 14.9% 18.3% 17.4% 16.5%       Net Income/Shareholders' equity                  
5Yr Running Ave             14.7% 16.3% 17.0% 17.0% <----                        
                                             
Net Income     $38.08 $48.55 $54.27 $60.75 $66.53 $82.24 $78.45 $95.01         Income Statement              
Oper C. F.     $72.60 $68.57 $77.27 $76.84 $89.75 $117.40 $116.06 $119.72 <----       Cash Flow Statement CF from continuing operations        
Invest. C. F     -$458.11 -$11.19 -$11.93 -$13.89 -$233.71 -$16.24 -$56.56 -$25.68         Cash Flow Statement            
Total Accruals     $423.60 -$8.83 -$11.08 -$2.21 $210.48 -$18.92 $18.95 $0.97                          
Total Assets     $476.41 $458.84 $430.60 $425.30 $641.05 $634.15 $663.91 $941.56         Balance Sheet                
Accruals Ratio     88.92% -1.92% -2.57% -0.52% 32.83% -2.98% 2.85% 0.10%                          
up/down/neutral                                              
Chge in Close     20.86% 34.91% 30.84% 2.16% -33.33% 35.83% -20.05% 0.77%                          
Any Predictions?                                            
                                               
Fin. C. F     $397.56 -$64.44 -$60.07 -$64.91 $141.38 -$93.80 -$60.58 -$102.23                          
Total Accruals     $26.04 $55.61 $48.99 $62.71 $69.10 $74.88 $79.53 $103.20                          
Accruals Ratio     5.47% 12.12% 11.38% 14.74% 10.78% 11.81% 11.98% 10.96%                          
                                             
Taxes                                              
Dividends     16.9% 19.5% 15.0% 0.0% 0.0% 0.0% 0.0% 0.0%       6.43% <-Average 8 Taxes            
Cap Gain     0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%       0.00% <-Average 8 Taxes            
Taxable Inc     71.5% 69.4% 75.2% 91.6% 100.0% 100.0% 100.0% 100.0%       88.46% <-Average 8 Taxes            
Ret of Cap.     11.6% 11.1% 9.8% 8.4% 0.0% 0.0% 0.0% 0.0%       5.11% <-Average 8 Taxes            
Total     100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%                          
For Tax Cr                                              
                                               
Mar 2010.  In Mar 2009, I got, for 2009 and 2010 earnings of $1.80 and $1.90 and cash flow of $2.30 and 2.40.  Earnings for 2009 was higher at $1.98, but CF lower at $2.25.                
AR 2008.  Good current yield, but expect a 35% cut, at least in 2011.                                    
Went Public 2001 at $10                                            
                                               
How they make their money.                                          
Davis & Henderson is a leading solutions provider to the financial services marketplace. Founded in 1875, the company today provides innovative programs, technology products and technology based             
business services to customers who offer chequing accounts, credit card accounts and personal, commercial, and other lending and leasing products.                       
                                               
For most ratios, lower is better when looking for a good stock price.  However, there are exceptions such as for yield and asset/liability ratios and here you want a higher ratios to indicate a good stock price.            
Also, for the Operational Profit Margin, a higher percentage is better.  With the OPM, you should only compare companies in similar industries.                      
                                               
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