Valeant Pharmaceutical (VRX) This stock continues to impress me. Since this stock was listed on the TSX in 2003, it underperformed the market badly. Since mid-2010, however, it has far outpaced the growth of the rest of the market. Currently, it has one of the top (share price) growth rates in the TSX. It has doubled over the past year. That’s really difficult to argue with. During the dull summer months, while the rest of the market isn’t doing much of anything, this one may be worth owning (and watching closely). Disclaimer: I’m not buying this one because I own MG, which has similar momentum, and I don’t want to double my transaction costs.
Tim Hortons (THI) I remember the Tim Hortons IPO in 2006. It was very popular, much like the line ups at their drive thrus. It was so oversubscribed that retail investors couldn’t get any (I know, because I asked). I talked with a mutual fund manager who got some in the IPO and sold it within minutes for a 10% profit. (Investing is a stacked game.) The stock price did very little over the next couple of year, even when the rest of the market crashed in 2008. Since 2010, however, when the market and THI both started around the same (relative) point, this stock has outperformed the market by almost 80%. It currently has positive momentum, which makes the short term look good. It’s nice to know that you can make money with Tim Hortons without having to run a franchise.
SNC Lavalin (SNC) What happened here? The share price dropped over 10 percent last week, mostly over Thursday night / Friday morning. It turns out they reported a big earnings loss. I wrote about this company on February 15, 2013, and pointed out on March 8, 2013 that I was mistaken to suggest it. Since February, the share price has fallen 17%. Oops.
Catamaran Corp (CCT) This company was a recent addition to the TSX 60, replacing Nexen when it was bought out. They were formerly called SXC Health Solutions and they manage health benefits and health care information technologies. (It is cross-listed on the NASDAQ.) The company announced their most recent earning, handily beating analysts’ estimates. Analysts reacting by upgrading their future estimates and their price targets. Its momentum is nearing my top five, and I’ll likely write more about it next week.
Potash (POT) I’m not sure what cause the share price to fall 20% from July 29 to July 30. I found a headline with the words “potash cartel breakup”, so it looks like a regulatory change that will impact the company. From a momentum perspective, stay away. However, a value investor might be attracted by the suddenly lower price and the relatively high dividend yield. Dividends have increased greatly over the last couple years.