GREY:CLLZF - Post by User
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DEXSTONon Jun 04, 2010 7:09am
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<<<<<<<<<<<<2010-06-03 08:36 ET - In the News
<<<<<<<<<<<<2010-06-03 08:36 ET - In the NewsGlobe says consider avoiding Kingsway Financial, others
2010-06-03 08:36 ET - In the News
See In the News (C-KFS) Kingsway Financial Services Inc
The Globe and Mail reports in its Thursday edition that equity research firm CPMS runs a screen to identify stocks with the most troubling combination of fundamentals in the market. The Globe's Gordon Edall writes in the Number Cruncher column that CPMS uses six indicators to figure out how "dangerous" a stock is, such as earnings growth over the trailing four quarters. It looks at the price-to-earnings ratio, based on the consensus earnings forecast for the next 12 months. It considers earnings surprise -- the percentage by which the stock fell short of the consensus earnings estimates for the most recent quarter. It looks at the percentage by which earnings estimates for the current year have changed over the past three months. It screens for the ratio of debt to equity. And finally, its last indicator is the ratio of trailing four quarter cash flow to debt. The names provided by CPMS are the "worst of the worst." Stocks CPMS recommends avoiding are Northern Dynasty Minerals, Kingsway Financial Services, BioExx Specialty Proteins, North American Palladium, Westport Innovations and Connacher Oil and Gas. The Globe says if you own any of these companies do more research before making a move to sell.