Break Out Stocks Q2 2005 Review

Once again we are conducting our quarterly review and re-evaluating the stocks on our Watched List to see if we want to keep following them.

We sometimes err in our recommendations and sometimes circumstances change and a stock that had been behaving well starts to  head south.

We're also looking for ways to improve our selection and culling criteria and you'll find a review of our previous paring jobs elsewhere. For this effort we are following much the same plan, dropping stocks that meet all three of the following three criteria:

And we are dropping any stocks we've had for over a year that have failed to grow by 25% or have had for two years and have failed to grow by 50%. We are making exceptions for stocks that are in a current up trend or are growing earnings.

The table below gives the complete picture. We are dropping five stocks that we believe have either run their course or are going nowhere. They are Axcan Pharma, Calian Technologies, Cinram, Ketch Resources Trust, and Westjet. There are a few that are  just marginal keepers in our list but we're not ready to write them off yet. This includes Killam Properties which is narrowing its losses, building up a sizeable portfolio of properties and looks poised to move higher soon.

It should be noted, of course, that we are dropping them from our Watched List doesn't necessarily mean they are poor stocks.  We've dropped stocks before only to see them catch fire and soar subsequently. It just means that I no longer consider the upside odds very good. I may add one or more back in at a later date.

Note: T = turnaround from loss to profit, L means the company had a loss in the most recent quarter, * means quarterly earnings per share not available.

Name

Symbol

Date
Featured

Price
Then

Change
Q2

Change
YTD

Change
Since
Profiled

June
RS
Change
Recent
Trend
QEPS
Change
Status

Home Capital Group

HCG

Nov. 20/00

$3.00

8.40%

16.83%

1117.00%

+1.07 h +34.5% Keep

Peyto Energy Trust

PEY.UN

Feb. 22/02

$2.58

13.15%

22.31%

1035.92%

+1.20 h +45.3% Keep

Reitmans (Canada)

RET.A

July 6/01

$2.53

26.33%

21.47%

586.22%

-3.58 h +47.4% Keep

Alimentation Couche-Tard

ATD.SV.B

Dec. 4/00

$2.88

6.61%

5.41%

550.78%

+0.29 h +90.0% Keep

TransForce Income Fund

TIF.UN

Jan. 18/02

$3.11

2.65%

9.52%

436.33%

-2.97 g +50.0% Keep

Zargon Oil & Gas

ZAR.UN

Jan. 29/01

$4.70

2.08%

5.07%

433.19%

+2.31 h +6.7% Keep

Canada Bread Co.

CBY

May 18/01

$13.00

0.40%

17.00%

323.00%

+0.03 h -2.1% Keep

SNC-Lavalin Group

SNC

Mar. 23/01

$16.25

-1.85%

18.28%

322.15%

-1.93 g +27.0% Keep

Contrans Income Fund

CSS.UN

Oct. 12/01

$3.63

-10.58%

1.85%

293.66%

-9.40 i 0.0% Keep

Stantec Inc.

STN

Apr. 20/01

$8.25

2.23%

12.73%

261.82%

off list h +16.7% Keep

Melcor Developments

MRD

Mar. 2/01

$20.30

10.51%

39.22%

249.75%

-0.68 h -3.4% Keep

Richelieu Hardware

RCH

Dec. 4/00

$7.00

-9.96%

2.46%

221.57%

off list i +10.3% Keep

Calian Technology

CTY

Oct. 1/02

$3.85

-9.19%

-18.22%

218.18%

off list i -43.2% Drop

CCS Income Fund

CCR.UN

May 18/03

$10.15

4.28%

32.03%

185.86%

+0.51 g +48.6% Keep

Niko Resources

NKO

Nov. 17/02

$22.20

-7.61%

14.31%

159.86%

-2.58 h +530.0% Keep

Goldcorp Inc.

G

May 25/01

$7.83

13.05%

7.92%

148.91%

new h +22.2% Keep

Trican Well Service

TCW

Apr. 18/04

$12.16

15.85%

35.88%

147.63%

-1.29 h +50.4% Keep

AlarmForce

AF

Sept. 21/03

$1.92

4.49%

30.99%

142.19%

new g -1.9% Keep

CML Healthcare Income Fund

CLC.UN

Apr. 12/02

$5.85

1.84%

3.75%

136.75%

new h +66.7% Keep

GSW Inc.

GSW.B

May 16/04

$34.73

60.00%

73.33%

124.59%

+4.31 h +58.0% Keep

Finning International

FTT

May 11/01

$16.40

9.95%

3.32%

120.43%

off list h +40.0% Keep

Steeplejack Industrial Group

SID

Jan. 18/04

$2.95

51.25%

51.63%

105.08%

new h L Keep

Fortis Inc.

FTS

Mar. 16/01

$38.00

8.87%

11.84%

104.55%

+3.51 h +29.5% Keep

BMTC Group

GBT.SV.A

Aug. 20/02

$6.98

-3.92%

6.22%

93.41%

new h -33.3% Keep

RONA Inc.

RON

Nov. 16/03

$12.78

4.36%

20.98%

93.19%

-1.09 g +20.0% Keep

TSX Group

X

Jan. 18/04

$22.50

16.55%

36.00%

62.27%

+8.12 h +15.8% Keep

ZCL Composites

ZCL

June 20/04

$2.05

9.43%

-4.97%

58.54%

-4.70 g +133.3% Keep

Cameco Corp.

CCO

Nov. 19/04

$36.87

2.02%

30.27%

48.22%

-1.44 h -31.8% Keep

Chartwell Technology

CWH

Dec. 17/04

$5.60

-8.57%

19.40%

42.86%

-2.28 i -16.7% Keep

Pason Systems

PSI

May 16/04

$15.00

12.55%

15.14%

42.00%

-0.17 h +25.0% Keep

La Senza

LSZ.SV

April 17/05

$14.65

23.89%

23.89%

23.89%

+2.86 h T Keep

McCoy Brothers

MCB

May 15/05

$4.65

20.43%

20.43%

20.43%

+0.05 h +400.0% Keep

Big Rock Brewery Income Trust

BR.UN

Oct. 15/04

$16.05

5.21%

3.17%

15.70%

+0.61 g -29.2% Keep

Killam Properties

KMP

Jan. 18/04

$2.36

2.26%

32.68%

15.25%

-5.82 g L Keep

CIBC

CM

Feb. 15/04

$66.15

3.31%

4.93%

14.57%

off list h -9.8% Keep

easyhome

EH

Dec. 17/04

$12.93

2.84%

14.48%

12.12%

-0.60 g +8.7% Keep

Kingsway Financial Services

KFS

July 20/03

$18.60

11.29%

9.47%

11.83%

-4.79 h +49.1% Keep

BlackRock Ventures

BVI

Jan. 16/05

$8.92

-6.63%

10.54%

10.54%

new h 0.0% Keep

Le Chateau

CTU.SV.A

June 19/05

$39.06

10.06%

10.06%

10.06%

+1.92 h +90.0% Keep

Sherritt International

S

Nov. 19/04

$8.66

-5.96%

-6.34%

7.51%

-1.92 h -19.2% Keep

Falconbridge Ltd.

FL

Mar. 14/04

$34.75

-14.03%

19.97%

7.37%

off list g +19.8% Keep

Ketch Resources Trust

KER.UN

July 18/04

$10.96

-13.64%

-32.86%

4.01%

off list i -69.2% Drop

Xceed Mortgage Corporation

XMC

Jan. 16/05

$5.05

4.00%

2.97%

2.97%

off list h +57.1% Keep

Great Canadian Gaming

GCD

Mar. 20/05

$19.32

1.77%

1.45%

1.45%

-2.64 h +50.0% Keep

Draxis Health

DAX

Feb. 15/04

$6.05

-2.72%

2.18%

0.66%

off list g +100.0% Keep

Savannah Energy Services

SVY

Feb. 20/05

$19.35

1.74%

0.00%

0.00%

+0.92 h +50.0% Keep

Ainsworth Lumber Co.

ANS

Aug. 15/04

$30.40

-7.86%

20.00%

-2.11%

off list g T Keep

Potash Corporation

POT

June 19/05

$119.85

-2.42%

-2.42%

-2.42%

-1.48 h +144.7% Keep

Research In Motion

RIM

Sept. 19/04

$94.82

-2.74%

-8.72%

-4.90%

-0.15 g +139.3% Keep

Centurion Energy

CUX

Ja. 16/05

$14.45

-12.92%

-7.20%

-7.20%

-0.15 h +166.7% Keep

Cinram

CRW

Aug. 17/03

$25.83

-8.45%

6.19%

-9.02%

off list i -73.1% Drop

Cryptologic

CRY

May 15/05

$42.05

-12.32%

-12.32%

-12.32%

-5.27 g +21.4% Keep

Calfrac Well Services

CFW

Mar. 20/05

$36.75

-4.88%

-15.65%

-15.65%

-1.98 g +34.1% Keep

Mad Catz Interactive

MCZ

Feb. 20/05

$1.72

-31.16%

-20.35%

-20.35%

-3.92 i +100.0% Keep

Axcan Pharma

AXP

June 20/04

$27.43

-8.59%

-19.97%

-32.08%

off list g -50.0% Drop

Westjet Airlines

WJA

Jan. 18/04

$20.97

-12.78%

13.84%

-34.91%

off list i L Drop

174.85%

612.38%

7883.34%

       

3.12%

10.94%

140.77%

       

Dropped (with YTD and Total Gain in brackets) are Axcan Pharma (-19.97%, -32.08%), Calian Technology (-18.22%, 218.18%), Cinram (+6.19%, -9.02%), Ketch Resources Trust (-32.86%, +4.01%), Westjet (+13.84%, -34.91%)

Dropped in Q1 were Cott Corporation (-0.98%, +43.37%), Zenon Environmental (-10.49%, -2.60%), Coolbrands International (-1.68%, -12.68%), QLT Inc. (-19.45%, -31.34%)

The information in this table was derived using the Portfolio Tracking feature at globeinvestor.com