The Globe and Mail attempts to identify stocks with long-term capital appreciation
with an emphasis on income
generation in its Friday, Sept. 23, edition. The Globe's Julie Michaels writes in the Number Cruncher column that she took a closer look at the type
of stocks that have been driving
the market rally this past year. She notes an unmistakable domination
from the oil and gas sector, and
metals and minerals, specifically
golds. She says these stocks exhibit
strong momentum attributes,
especially price momentum, but
are lacking in income and
growth characteristics. For the
investors who do not want to
jump on the volatile momentum
bandwagon, Ms. Michaels analyzed a
more conservative fundamental
approach to stock selection by
focusing on growth and income. For her stock picks she looked for five-year normalized earnings and sales
growth, positive three-month analyst estimate
revisions, positive quarterly earnings momentum, a dividend yield with strong historical growth and positive earnings surprises. Ms. Michaels's recommended stocks are Fiera Capital, Student Transportation, Magna International, Canadian Imperial Bank of Commerce, Western Forest Products and Altus Group.
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