Globe mentions MART
Globe says Gildan, others expected to give good growth
2013-03-19 07:55 ET - In the News
See In the News (C-GIL) Gildan Activewear Inc
The Globe and Mail attempts to identify Canadian companies with a solid growth outlook and improving profitability in its Tuesday edition. The Globe's Ian McGugan employed the services of CPMS Morningstar Canada consultant Craig McGee in the Number Cruncher column. Mr. McGee graded 730 Canadian firms on a checklist of growth and profitability characteristics. He only considered companies with a market capitalization greater than $500-million. He examined four-year average return on equity (ROE), three-month consensus 2013 earnings-per-share (EPS) estimate revisions, annual rate of change of ROE, annual rate of change of EPS, annual rate of change of revenue and annual rate of change of operating cash flow. This strategy has performed well since 2003, and in 2012 it generated a total return of 22.9 per cent compared with 7.2 per cent for the S&P/TSX Total Return Index. Mr. McGugan says investors should factor in the constant supervision required to follow this strategy, as well as substantial trading costs. Mr. McGugan says turnover tends to be high. Recommended are Gildan Activewear, West Fraser Timber, Mart Resources, Northland Power, WestJet Airlines and Canadian Pacific Railway