The Globe and Mail reports in its Tuesday edition that lower stock prices after a market pullback may cause investors to pick up bargains, only to end up buying money losers. The Globe's guest columnist Noor Hussain writes in the Number Cruncher column that we need, as a result, to differentiate between real value and value traps. For the column Mr. Noor attempts to identify Canadian stocks that are potential value traps. He made his picks within S&P/TSX composite index. He looked for future-growth-value-to-market-value ratio of 5 per cent or higher. Mr. Noor says to identify value traps, he searched for a positive FGV/MV, as this translates into an overvalued stock. The higher the percentage, the higher the baked-in premium for expected growth and the higher the risk. As well, he looked at the economic performance index. EPI is the ratio of return on capital to cost of capital and ultimately reflects the wealth-creating ability of the stock. By selecting an EPI equal to or less than one, Mr. Noor aims to identify the companies that are unable to generate positive wealth for shareholders. Mr. Noor's value traps are Manulife Financial, Fortis, Emera, Turquoise Hill Resources and Keyera.