The Globe and Mail attempts to identify Canadian companies that rank
highly in earnings quality, credit
health and their ability to
generate "alpha," according to
Thomson Reuters StarMine
models, in its Wednesday, May 19, edition. The Globe's Ryan Gottschalk writes in the Number Cruncher column that finding alpha -- stocks that consistently
achieve positive risk-adjusted
returns -- is no easy task
in today's market.
Behind each investment process
may lie dozens of investment
professionals, each
specializing in their own area of
expertise and providing valuable
insight toward the final decision.
The Thomson Reuters Combined
Alpha Model condenses this process
down into a single score that
combines various quantitative
models proven to be predictive in
nature. Mr. Gottschalk looks to
identify Canadian-based companies
that are poised to deliver
alpha based on this model.
For liquidity purposes all companies
included have a market
capitalization of at least $300-million and a Combined Alpha
Model score of at least 80 to signify
potential growth opportunities.
Firms poised to deliver alpha are Bird Construction, Newmarket Gold, Semafo, Genworth MI Canada and Exco Technologies.
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