Great article for Magellan aerospace
Globe says Emera, others offer growth and value
2016-12-06 08:19 ET - In the News
See In the News (C-EMA) Emera Inc
The Globe and Mail attempts to identify Canadian growth companies creating wealth for their shareholders and trading at a discount in its Tuesday, Dec. 6, edition. The Globe's Jean-Didier LaPointe writes in the Number Cruncher column that he looked at about 1,500 stocks, picking only companies with a market capitalization of $1-billion or greater. He looked for 12-month growth in revenue of 10 per cent or greater. Mr. LaPointe only considered companies with 24-month revenue growth of 20 per cent or greater. His picks needed to have an economic performance index, or EPI (return on capital divided by cost of capital), of at least 1. An EPI ratio of 1 or more indicates a company's capacity to create wealth for its shareholders. As well, Mr. LaPointe looked for return on capital of 10 per cent or greater. Finally, he considered negative future growth value (FGV), which shows the portion of the total market value that exceeds the company's current operating value, indicating the level of risk. Canadian growth companies that offer value, according to Mr. LaPointe's figuring, are First National Financial, EnerCare, Emera, Magellan Aerospace and Great Canadian Gaming.