Like Loblaws, Bombardier is another company that was a market darling many years ago. It’s difficult to believe that it belongs in the TSX 60, given that its share price is under $5.00, where it can be classified a penny stock. Since crashing in 2001, the stock price has only reached $7.00 a couple times. Most professional investors don’t like it, given that the business is capital intensive and has thin margins. Apparently Bombardier is set to announce a new C class jet soon, and the market is waiting for the announcement before rendering judgement. However, momentum is pretty good and it’s been in the top five in two of the last three weeks. There might be some short-term opportunity.
VRX, why don’t I own you? Last week, I wrote about Valeant Pharmaceutical, indicating that it was among the leaders of momentum in the TSX 60. This week it has the greatest momentum of all the stocks in the TSX 60, given that the price jumped by over $10 (over 13%) last Friday. I can’t tell what caused the jump, but sentiment appears to be bullish.