The Globe and Mail attempts to identify strong small-cap names exhibiting
strong income, growth and
momentum characteristics in its Friday, April 8, edition. The Globe's guest columnist Julie Michaels writes in the Number Cruncher column that she has designed a strategy for
investors who are looking to
enhance their core, stable, low-volatility
portfolio with exposure
to stable small-cap names.
She used a modified version
of the CPMS Triple 5 strategy, by
using a combination of factors
from its three styles: income,
growth and momentum. Ms. Michaels looked for a positive forward reinvestment rate and positive price-to-forward earnings. Three-month analyst estimate
revisions also needed to be positive. She looked for positive quarterly earnings surprises
and positive quarterly earnings momentum. She also took into consideration the expected dividend yield.
Qualifying companies had to have a
market float between $100-million
and $1-billion, and value of
the volume of shares traded in
the past month had to be no less than
$8-million. Five of Ms. Michaels's favourite small-cap stocks are goeasy, Magellan Aerospace, Guyana Goldfields, Cogeco and Exco Technologies.
© 2024 Canjex Publishing Ltd. All rights reserved.