Globe says Gluskin, others have good earnings momentum
Ticker Symbol: C:GS C:AVO C:DND C:TRZ C:CAM C:SUM
Globe says Gluskin, others have good earnings momentum
Gluskin Sheff + Associates Inc (C:GS)
Shares Issued 29,510,426
Last Close 1/8/2014 $26.30
Thursday January 09 2014 - In the News
Also Avigilon Corp (C:AVO) In the News
Also Cipher Pharmaceuticals Inc (C:DND) In the News
Also Transat AT Inc (C:TRZ) In the News
Also Canam Group Inc (C:CAM) In the News
Also Solium Capital Inc (C:SUM) In the News
The Globe and Mail attempts to identify Canadian small-cap and mid-cap stocks with strong earnings and price momentum in its Thursday, Jan. 9, edition. The Globe's Sonali Verma writes in the Number Cruncher column that she looked for stocks with the best combination of the following metrics: Return on equity in the last four quarters; quarterly earnings momentum, or the rate of change in earnings per share over the most recent four quarters, compared with the equivalent measure from a quarter earlier; positive earnings surprises for the latest quarter; consensus earnings estimate revisions over the past three months; and price momentum over the past year. Ms. Verma back-tested the strategy beginning Dec. 31, 1986. The best ranking stocks at that point in time were selected and equally weighted, and each month, stocks would be sold if they fell outside of the top 20 per cent of the database. Over the 27-year period, the strategy produced an annualized total return of 30.8 per cent while the BMO Canadian Small Cap Index posted a return of 7.5 per cent. Ms. Verma recommends buying Gluskin, Sheff + Associates, Avigilon, Cipher Pharmaceuticals, Transat AT, Canam Group and Solium Capital.