Thursday, May 15, 2014

A selection of seven stocks

I anticipated that manufacturing would be a growth sector for 2013 as evidenced by stocks such as CN Rail, CP Rail and Magna, all which have done tremendously well over the past year.  I decided to buy LNR Linamar  for my wife's portfolio last year.  At that time, the stock was about $35.  The price today is 62.58, with a return of about 81%.  It is the best performing stock in her portfolio.  On a YTD basis, since Jan 2 2014, the stock is up 41%.

LNR - Linamar

Key stats and ratios

Q4 (Dec '13)2013
Net profit margin7.42%6.39%
Operating margin9.16%8.90%
EBITD margin
15.03%
Return on average assets10.48%9.12%
Return on average equity21.26%19.13%

Anyways, google finance has a stock screening feature that looks at stocks with similar attributes.  It selected 30 stocks and I picked 6 of them.   They all have a PE ratio of between 10 and 20 and double digit ROE. The companies are what you might consider mid-cap type stocks.  

Here is a list of the stocks I have chosen to watch.
GIB.A - CGI Group - Technology
GIL - Gildan Activewear - Consumer Discretionary
STN - Stantec - Industrial
EQB - Equitable Group - Financial Services
WFT - West Fraser Timber - Industrial
GC - Great Canadian Gaming - Consumer Discretionary

All of the info below I pulled from google finance, this morning.

GC - Great Canadian Gaming

Key stats and ratios

Q4 (Dec '13)2013
Net profit margin7.09%15.49%
Operating margin16.63%29.00%
EBITD margin34.40%
Return on average assets3.18%7.10%
Return on average equity9.37%21.47%
GIB.A - CGI Group

Key stats and ratios

Q1 (Mar '14)2013
Net profit margin8.54%4.52%
Operating margin10.74%6.22%
EBITD margin14.86%
Return on average assets7.93%4.23%
Return on average equity20.61%12.19%
EQB - Equitable Group

Key stats and ratios

Q4 (Dec '13)2013
Net profit margin51.86%49.51%
Operating margin68.57%65.99%
EBITD margin160.44%
Return on average assets0.90%0.80%
Return on average equity19.42%18.11%
GIL - Gildan Activewear

Key stats and ratios

Q4 (Dec '13)2013
Net profit margin9.24%14.66%
Operating margin9.82%15.69%
EBITD margin20.45%
Return on average assets8.02%16.25%
Return on average equity9.66%20.36%
STN - Stantec

Key stats and ratios

Q4 (Dec '13)2013
Net profit margin7.90%7.98%
Operating margin10.43%10.86%
EBITD margin14.13%
Return on average assets8.68%9.32%
Return on average equity16.49%18.05%
WFT - West Fraser Timber

Key stats and ratios

Q4 (Dec '13)2013
Net profit margin14.17%10.05%
Operating margin3.60%9.93%
EBITD margin
15.98%
Return on average assets15.70%12.17%
Return on average equity25.48%20.30%

And here are the portfolio details.  In this hypothetical portfolio, I bought 100 shares of each company for a total outlay of about $35,262.  I built this portfolio pre-market Friday morning and have not factored in any commissions at this time.  As you can see the portfolio is down about 1% from yesterdays prices.




I will take screen shots in mid June to see how the portfolio progresses.  You can use google finance and create this same portfolio if you want to monitor the status on a more frequent basis or play around with the stock picks and amounts.


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