The Globe and Mail attempts to identify Canadian companies that might
benefit from a low dollar in the
short term and have a strong relative
valuation to their industry
peers in its Wednesday, May 10, edition. The Globe's guest columnist Paul Hoyda writes in the Number Cruncher column that while the loonie remains low in
the short term, there may be
ways to capitalize on its weakness.
He says more Americans may be
looking to Canada to plan their
vacations on a budget this year.
He screened for Canadian companies
with market capitalizations
of $150-million or more,
with business descriptions that
contained any one of the following
key words: resort, gaming,
casino, hotel, entertainment
or season. He then screened for
companies using the StarMine relative valuation
model incorporates
valuation measures that are
relevant to most securities: enterprise
value (EV) to sales; EV to
earnings before interest, taxes,
depreciation and amortization
(EBITDA); price-to-earnings;
price-to-cash-flow; price-to-book;
and dividend yield. Mr. Hoyda recommends buying Great Canadian Gaming, BRP, Gamehost, WestJet Airlines, Morguard and Amaya.
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