The Globe and Mail attempts to identify Canadian growth stocks that offer safety and value in its Thursday, Feb. 23, edition. The Globe's Sean Pugliese writes in the Number Cruncher column that he searched for expanding companies by looking
at Canadian-listed equities
with positive revenue expansion
over the past three years.
He sorted the list from highest
to lowest on this measure. He
narrowed it down further by limiting
the list to companies with a
market capitalization of $1-billion
or more.
He views market capitalization
as a safety factor, as larger companies
usually have reliable revenue
streams and tend to be more
liquid. Mr. Pugliese says he likes large, stable businesses
that can expand as that should
increase the value of the company
and its share price. He says, "We
like to get paid while we wait for
capital appreciation." Dividends
generally reflect safer and steady
earnings profiles.
Mr. Pugliese says he likes companies that can
do both -- improve business and pay dividends. Stocks that blend safety and value are Fortis, Enghouse Systems, Sierra Wireless, Interfor, Industrial Alliance Insurance and Financial Services and Agnico Eagle Mines.
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