TSXV:AAA.P - Post by User
Post by
fairrplayon Aug 09, 2013 7:52am
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Post# 21658713
GLOBE SAYS ...Value stocks with strong balance sheets are Allana Potash....
GLOBE SAYS ...Value stocks with strong balance sheets are Allana Potash....
Globe says Sprott Resources, others are bargain priced
2013-08-09 07:24 ET - In the News
See In the News (C-SCP) Sprott Resource Corp
The Globe and Mail attempts to identify deep value stocks that also have reasonably strong balance sheets in its Friday edition. The Globe's Ian McGugan writes in the Number Cruncher column that these stocks are trading at what appear to be bargain prices and also have enough liquid assets to meet their immediate needs. Mr. McGugan says that might make them attractive to investors who do not mind the risk involved in bottom fishing. Mr. McGugan only considered stocks with a market capitalization greater than $100-million. His picks had to have a share-price-to-tangible-book-value ratio no greater than one. Tangible book value excludes goodwill and other intangible assets. His picks needed to have consensus earnings-per-share estimate revisions over the past 90 days that were positive or unchanged. This ensures that analysts are not predicting an immediate decline in profits. Mr. McGugan's stock picks should be approached with interests, but also with caution. He says companies that are trading below their tangible book values are often cheap for good reasons. Value stocks with strong balance sheets are Sprott Resources, Noranda Income Fund, Gabriel Resources, Clairvest Group, Equal Energy and Allana