The Globe and Mail attempts to identify Canadian small-cap growth companies that have sound fundamentals in its Tuesday, July 16, edition. The Globe's guest columnist Norman Rothery writes in the Number Cruncher column that he scoured the Canadian stock universe by focusing on the companies with a market capitalization between $200-million and $1-billion. His picks had to have a current economic performance index (EPI) greater than one, which gives shareholders an idea of how much return the company is generating on each dollar spent. His picks also had to have positive 12-month sales growth. He looked at PEG, or price-earnings-to-growth, to find companies that are undervalued. This ratio compares the current price-to-earnings ratio with the average five-year earnings per share growth. Mr. Rothery's recommended small caps with solid fundamentals are Magellan Aerospace, Martinrea International, Wesdome Gold Mines, goeasy, Clairvest Group and Wall Financial.