Globe & Mail says $$$$$$Globe says DragonWave, others have good momentum
2010-02-18 07:00 ET - In the News
See In the News (C-DWI) DragonWave Inc
TheGlobe and Mail attempts to identify stock with good momentum in itsThursday, Feb. 18, edition. The Globe's John Heinzl writes in theNumber Cruncher column that he searched out companies that were firingon all cylinders,both from an earnings andshare price standpoint. To find potential winning stock Mr. Heinzl useda so-called "Momentum Model" developed by equityresearch and portfolioanalysis firm CPMS.
Mr. Heinzl notes that since CPMS's inceptionin 1985, its MomentumModel has generated an annualizedreturn of 22 per cent, makingit the firm's top-performingmodel portfolio.Mr. Heinzl says the strategy is not suitable foreveryone. The model selects alot of volatile small-cap stocksand the portfolio turnover averagesabout 200 per cent a year.
The model looks forstocks with upward estimate revisions, positive earnings surprisesversusanalyst expectations, growing earnings and short-term price momentum. The model'scurrent "buy" list includes DragonWave, Cogeco Cable, Norbord, GardaWorld Security, Dundee Precious Metals and Katanga Mining (KAT.TO). Katanga Mining has a huge deposit of copper-nickel-cobalt.