The Globe and Mail attempts to identify liquid Canadian names showing
positive fundamental earnings
and price momentum in its Thursday, June 9, edition. The Globe's Ian Tam writes in the Number Cruncher column that since late January, the S&P/TSX
composite total return index has
risen by about 20 per cent,
bouncing off a rough 2015 calendar
year. Is this is a sustainable
rally, or is it just a temporary blip
caused by a fluctuation in commodity
prices? Either way, Mr. Tam says this
recent move may provide opportunities
for short-term momentum-focused investors to ride the
rally. With this in mind, Mr. Tam focused on liquid names in Canada
that show the best combination
of:
positive three-month estimate revisions; the price of the stock relative to
its latest 12-month high; positive quarterly earnings momentum; and positive quarterly earning surprises.
To focus on liquid names, only
the top 25 per cent of the CPMS
Canadian universe (based on
monthly trading volume) were
considered in this strategy.
Mr. Tam's recommended picks are Pan American Silver, Yamana Gold, ARC Resources, Barrick Gold and Chartwell Retirement Residences REIT.
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