The Globe and Mail attempts to identify stocks trading near their historical
average valuations, but
showing positive price momentum in its Thursday, April 28, edition. The Globe's Ian Tam writes in the Number Cruncher column that as the recent rally of the S&P/TSX composite index from March
continues into April, investors
confident of an extended rally
may look to take advantage of
some of this recent market
momentum.
Mr. Tam says value-oriented investors, however, will find it
difficult to simply jump in on
general market signals without
some further analysis. With this
in mind, Mr. Tam looked for stocks
showing recent momentum, but
are also trading at or near their
historical average valuations.
He looked for positive one-month and three-month price momentum. Mr. Tam gave consideration to historical relative price-to-book,
price-to-earnings, price-to-cash-flow
and price-to-sales ratios.
To qualify, companies needed to
have at least $12.5-million in volume
traded over the past month. Mr. Tam's momentum stock picks are McEwen Mining, Kirkland Lake Gold, Endeavour Mining, Avigilon and Home Capital Group.
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