Underperformers blemish Raymond James list
WHAT ARE WE LOOKING FOR?
Just in case, dismayed by the market mayhem, you might be tempted to sell everything and stash your cash under the mattress, we have a few stock ideas for you, courtesy of a number of brokerage firms. Yesterday, we examined the 12-stock portfolio compiled by George Vasic, strategist at UBS Securities Canada Inc.
Today, we went back to Raymond James Ltd.'s top picks list drawn up at the beginning of December to see how those issues have fared.
WHAT STOCKS MADE THE LIST
The list is made up of 14 Canadian equities that Raymond James analysts believed were poised to generate superior returns in 2008.
Unlike the UBS list, which is all larger cap stocks, the Raymond James picks list represents a mix of market capitalization sizes, ranging all the way from $220-million to $4.86-billion. Another difference is the inclusion in the Raymond James list of two income trusts - Baytex Energy Trust and Canfor Pulp Income Fund - and one stock, Alter NRG Corp., that trades on the TSX Venture Exchange.
Mining issues figure prominently on the Raymond James list with four names. There are three energy issues, one drug development company, one real estate investment concern, one technology company, a forest products firm and a selection of other companies.
The group has underperformed the S&P/TSX composite total return index generating an average 5.8 per cent loss from the Dec. 6, 2007, selection date to July 24, which trails the 0.8-per-cent gain of the index.
WHAT DID WE FIND?
While the group as a whole has underperformed, several have done very well. Baytex Energy, for example, is up 59.4 per cent from the beginning of the year, while Alter NRG, which is developing alternative energy businesses, has climbed 48.6 per cent. Cardiome Pharma Corp. advanced 27.6 per cent.
But those were overshadowed by the losses racked up by most of the other issues. Uranium One Inc. in particular has had a tough time. Its shares have slumped 60.6 per cent. European Goldfields, Aecon Group, and Gildan Activewear Inc. all posted sharp year-to-date declines.
Only six of the issues pay dividends or distributions.
| Top picks from Raymond James Ltd. | |||||||||
| $ Price | 52-wk | 52-wk | 1-yr % | YTD % | Div. | Market cap | |||
| Company name | Symbol | July 28 | high $ | low $ | price chg | price chg | yld % | P/E | ($-mil) |
| Aecon Group | ARE-T | 14.17 | 23.30 | 11.00 | 6.4 | -38.5 | 1.4 | 10.4 | 657 |
| Alter NRG Corp. | NRG-X | 4.83 | 6.75 | 1.90 | 75.6 | 48.6 | 0.0 | -13.8 | 220 |
| Baytex Energy Trust | BTE.UN-T | 30.29 | 35.37 | 16.30 | 48.4 | 59.4 | 9.9 | 17.2 | 2,598 |
| Bow Valley Energy | BVX-T | 4.69 | 7.27 | 4.25 | -21.4 | -25.6 | 0.0 | 21.3 | 404 |
| Canfor Pulp Income Fund | CFX.UN-T | 8.95 | 14.46 | 8.28 | -37.1 | -18.6 | 16.1 | 12.4 | 318 |
| Cardiome Pharma | COM-T | 11.37 | 12.17 | 5.00 | 25.0 | 27.6 | 0.0 | -7.7 | 725 |
| CGI Group | GIB.A-T | 10.33 | 12.02 | 8.95 | -8.4 | -10.9 | 0.0 | 12.5 | 3,288 |
| European Goldfields Ltd. | EGU-T | 3.09 | 7.20 | 2.83 | -43.3 | -43.6 | 0.0 | 20.6 | 554 |
| Finning International | FTT-T | 25.76 | 33.91 | 22.65 | -7.3 | -10.1 | 1.7 | 16.4 | 4,447 |
| First Capital Realty | FCR-T | 21.80 | 26.83 | 21.02 | -15.3 | -9.2 | 5.9 | 55.9 | 1,870 |
| First Quantum Minerals | FM-T | 71.21 | 105.00 | 65.55 | -26.2 | -16.3 | 1.1 | 7.5 | 4,855 |
| Gildan Activewear | GIL-T | 25.24 | 44.55 | 22.09 | -29.3 | -38.4 | 0.0 | 18.2 | 3,041 |
| Quadra Mining Ltd. | QUA-T | 17.75 | 27.00 | 13.00 | 2.6 | 0.7 | 0.0 | 5.5 | 990 |
| Uranium One | UUU-T | 3.48 | 13.34 | 3.04 | -70.6 | -60.6 | 0.0 | -11.2 | 1,627 |
SOURCE: GLOBE INVESTOR
