SPOTLIGHT: Value Investing Guide
A Beautiful Find
That's the goal of all value investors, who begin by crunching the numbers.
However, value managers can't all be painted by the same brush, as experience,
subjectivity and good old gut instinct always comes into play. Read Wayne
Lilley's report on finding value.
Crunching the Numbers
Value investors have used the same ratios for decades, from Price to Earnings
to Return on Capital. You can get the numbers instantly these days, but
interpreting them is still an art. Read the definitions of these ratios and
view the table showing 28 TSX companies that matched the following criteria:
- Price/Earnings less than 10
- Price/Cash Flow less than 5
- Price/Book Value less than 5
- One-Year Return on Capital more than 10%
- One-year Return on Common Equity more than 10%
- Debt/Equity less than 1.
The Best from Report On Business Magazine
Provocateur: The Smartest Guy on Bay Street
He made millions for RBC Dominion, and is now suing for wrongful dismissal. He
has also quietly become very rich. Perhaps more than anything, though, Roland
Keiper — sage, oddball, crusader — has proven that buying and selling stocks
is not a game of chance. Read John Daly's fascinating profile of Roland Keiper.
Traders: Take This Job...
The traders who are lucky enough to play with the house's money have a limited
shelf life at any investment dealer. If so-called pro traders, for
"proprietary traders," are any good at all — and some are superb — they soon
realize that there's more money to be made working independently. Andrew
Willis profiles 5 such souls.
Advice to WestJet: DON'T BLOW IT
Keith McArthur asks: "Will scrappy little WestJet catch that industry disease,
overexpansionism?" Will excess and ambition dampen the bottom line? Read
Discount Airlines Rev Up
GLOBE INVESTOR: Report on
Precious Metals Lead the Way for Investors
Investors who put their money into precious metals, Latin American and natural
resources equity funds came up big winners last year, while those who parked
their proceeds in Canadian bond, foreign bond and labour-sponsored funds
missed out on a fabulous year. Read Showwei Chu's full report.
Funds Take Flight on China's Economy
Based on the Butterfly Effect, many top mutual funds in Canada in 2003 owe
their lofty returns to a Chinese economy that's taking flight. John Heinzl
FROM TODAY'S GLOBE:
Fund Sales, Customer Complaints
Mutual Fund Sales Gain More Traction
As Canadian mutual fund sales continue to pick up speed, sales figures show
that the big banks and popular income trust funds are reaping the biggest
benefits, while marquee names of the 1990s continue to languish. Read Carolyn
Insurance Firms Take the Cake When it Comes to Complaints
When it comes to generating complaints from customers, insurance firms took
the big prize last year. Yes, car insurance loomed large here, but property
and disability insurance also generated a lot of unhappiness. Read Carrick's
Andrew Rankin: Fast Friends Chose Different Paths
Reporter Paul Waldie chronicles the paths of two friends, Andrew Rankin and
Daniel Duic. The OSC alleges that Mr. Rankin and Mr. Duic made dozens of stock
trades based on information supplied by Mr. Rankin. Read the full report.