or
Remember me
Back
"The S&P/TSX Small Cap Index spreadsheet provides more fertile ground for neglected stocks. The typical stock in this index is followed by only seven analysts with Lightspeed Commerce Inc. the winner with 20 analysts. In this situation, a cut-off of five analysts as a measure of neglect would leave us with almost half the list. We can be more rigorous and focus on orphan stocks with zero coverage: The following five are not low expectation stocks – they are zero expectation stocks!
Corby Spirit and Wine Ltd., Frontera Energy Corp., RFA Financial Inc., ADF Group Inc., Amerigo Resources Ltd. I don’t currently own any of these stocks, but ADF Group, Corby and RFA Financial are now on my research to-do list.
Why is now a good time to focus on neglected stocks, regardless of your investment style? In the current market environment many stocks are trading on the basis of elevated investor expectations. They must deliver on these ambitious goals just to sustain the current stock price. Neglected stocks will suffer in a bear market also, but it is more difficult for a zero expectation stock to disappoint shareholders and suffer a total collapse.
Receive investor kits and email updates from Stockhouse and directly from these companies.
