The Globe and Mail attempts to identify momentum names with a history
of consistent reported earnings in its Thursday, July 21, edition. The Globe's Ian Tam writes in the Number Cruncher column that year to
date, the S&P/TSX total return
index is up 13.6 per cent, with
Canada's abundant materials and
energy sectors leading the
charge. This being said, many
investors are likely questioning
the conviction in the most recent
rally as much of this has to do
with the recent fluctuation in
crude and gold prices. With this
in mind, Mr. Tam created a strategy
that balances several
momentum factors with a factor
for consistency of reported earnings. Mr. Tam looked for companies with consistent earnings. He searched for companies with positive three-month estimate revisions and positive quarterly earnings momentum. To qualify, stocks needed to have at
least $1.6-million in average volume
traded and also have at
least three active analysts covering
the stock. Real estate investment
trusts were excluded from
Mr. Tam's strategy. Mr. Tam's momentum stocks with a history of consistent earnings are IBI Group, Pan American Silver, HNZ Group, Goldcorp and Barrick Gold.
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