Break Out Stocks 2006 Q2 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 both 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.  The only one we're dropping is BlackRock Ventures because it has been taken over by Shell Oil. Some are borderline calls but we opted to keep all the rest on our list. We could have dropped Le Chateau, but looking at its long term chart, its long term up trend is intact and we opted to keep it.

It should be noted, of course, that because 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

Recent Trend QEPS Change Status

Home Capital Group

HCG

Nov. 20/00

$3.00

-6.59%

-6.19%

986.67%

g -12.77% Keep

Peyto Energy Trust

PEY.UN

Feb. 22/02

$2.58

-9.51%

-6.73%

819.61%

i +14.29% Keep

Melcor Developments

MRD

Mar. 2/01

$2.03

-5.56%

43.46%

737.44%

g +155.56% Keep

Alimentation Couche-Tard

ATD.B

Dec. 4/00

$2.88

-5.55%

2.52%

734.43%

i -6.25% Keep

Reitmans (Canada)

RET.A

July 6/01

$2.53

0.50%

16.75%

690.12%

g +7.14% Keep

Zargon Oil & Gas

ZAR.UN

Jan. 29/01

$4.70

1.93%

-3.69%

550.64%

g +125.00% Keep

TransForce Income Fund

TIF.UN

Jan. 18/02

$3.02

-13.03%

-0.64%

461.26%

i +21.74% Keep

SNC-Lavalin Group

SNC

Mar. 23/01

$5.42

-7.87%

15.53%

442.07%

g +13.33% Keep

Stantec Inc.

STN

Apr. 20/01

$4.13

-2.20%

6.16%

411.52%

i +42.86% Keep

Canada Bread Co.

CBY

May 18/01

$13.00

8.14%

5.85%

380.38%

h +61.70% Keep

Goldcorp Inc.

G

May 25/01

$7.83

-1.52%

29.92%

329.76%

h +118.18% Keep

Trican Well Service

TCW

Apr. 18/04

$6.08

-16.24%

-20.36%

266.78%

g +73.02% Keep

CCS Income Fund

CCR.UN

May 18/03

$10.15

0.41%

0.00%

264.71%

h +49.09% Keep

Contrans Income Fund

CSS.UN

Oct. 12/01

$3.63

2.42%

-9.67%

249.86%

h +61.90% Keep

Richelieu Hardware

RCH

Dec. 4/00

$7.00

-1.46%

-9.07%

207.86%

i +15.63% Keep

Falconbridge Ltd.

FAL

Mar. 14/04

$19.63

43.87%

70.43%

199.54%

g +112.28% Keep

Niko Resources

NKO

Nov. 17/02

$22.20

6.85%

14.16%

183.96%

g L Keep

BlackRock Ventures

BVI

Jan. 16/05

$8.92

73.12%

110.00%

170.74%

g +200.00% Drop

BMTC Group

GBT.A

Aug. 20/02

$6.98

-4.21%

13.75%

160.93%

g -75.00% Keep

CML Healthcare Income Fund

CLC.UN

Apr. 12/02

$5.85

-0.41%

1.04%

148.72%

g +8.00% Keep

Steepleback Industrial Group

SID

Jan. 18/04

$2.95

-4.64%

1.41%

144.07%

i T Keep

ZCL Composites

ZCL

June 20/04

$2.05

33.33%

31.93%

143.90%

g +16.67% Keep

Cameco Corp.

CCO

Nov. 19/04

$18.44

5.88%

20.53%

141.23%

h +357.14% Keep

Fortis Inc.

FTS

Mar. 16/01

$9.50

-0.62%

-8.16%

134.63%

i -5.56% Keep

AlarmForce

AF

Sept. 21/03

$1.92

-3.30%

11.39%

129.17%

g +75.00% Keep

Finning International

FTT

May 11/01

$16.40

-3.63%

0.16%

126.83%

i +50.00% Keep

Pason Systems

PSI

May 16/04

$7.50

4.54%

13.15%

118.00%

i +60.78% Keep

Aur Resources

AUR

Oct. 16/05

$8.57

20.03%

51.10%

107.70%

h +37.14% Keep

TSX Group

X

Jan. 18/04

$22.50

-14.70%

-4.33%

99.11%

g +47.06% Keep

Garda World Security

GW

Aug. 21/05

$12.15

-6.23%

45.30%

80.82%

i +41.67% Keep

McCoy

MCB

May 15/05

$4.65

26.56%

28.57%

74.19%

i +140.00% Keep

La Senza

LSZ

April 17/05

$14.65

16.95%

25.26%

62.46%

h +130.77% Keep

RONA Inc.

RON

Nov. 16/03

$12.78

-10.05%

-6.53%

56.95%

i +16.67% Keep

Western Lakota Energy Services

WLE

July 17/05

$9.45

-18.33%

-15.32%

55.56%

i +143.75% Keep

Sino-Forest Corporation

TRE

Dec. 18/05

$4.40

-12.21%

16.40%

30.68%

h +16.67% Keep

Sherritt International

S

Nov. 19/04

$8.66

4.88%

10.59%

28.98%

h -4.76% Keep

Gildan Activewear

GIL

Sept. 18/05

$42.01

-4.44%

5.58%

25.66%

h +112.50% Keep

easyhome

EH

Dec. 17/04

$12.93

-0.61%

2.85%

25.65%

g +43.75% Keep

Xceed Mortgage Corporation

XMC

Jan. 16/05

$5.05

-34.47%

-2.22%

21.98%

g 0.00% Keep

Savannah Energy Services

SVY

Feb. 20/05

$19.35

-18.32%

-20.03%

18.19%

i +103.03% Keep

Stella-Jones Inc.

SJ

Feb. 19/06

$15.75

0.11%

17.59%

17.59%

i +126.67% Keep

Commercial Solutions

CSA

May 21/06

$7.09

16.36%

16.36%

16.36%

h +62.50% Keep

Teck Cominco

TCK.B

Dec. 18/05

$57.75

-10.86%

7.95%

15.98%

h +115.79% Keep

Ensign Energy Services

ESI

Nov. 20/05

$20.12

2.18%

-2.22%

14.02%

i +88.37% Keep

WFI Inc.

WFI

May 19/06

$16.80

13.10%

13.10%

13.10%

h +233.33% Keep

Foremost Income Fund

FMO.UN

June 16/06

$17.15

12.83%

12.83%

12.83%

h +134.78% Keep

Le Chateau

CTU.A

June 19/05

$39.06

-21.83%

-8.36%

12.57%

i -43.42% Keep

Big Rock Brewery Income Trust

BR.UN

Oct. 15/04

$16.05

3.74%

-8.04%

10.53%

h +5.88% Keep

Kingsway Financial Services

KFS

July 20/03

$18.60

-14.89%

-14.17%

8.44%

i -23.88% Drop

Pareto Corp.

PTO

Aug. 21/05

$1.13

-25.00%

-12.41%

6.19%

i 0.00% Keep

March Networks

MN

Nov. 20/05

$22.50

-30.98%

-26.88%

5.07%

g +770.00% Keep

GMP Capital Trust

GMP.UN

June 16/06

$22.50

4.58%

4.58%

4.58%

h +75.68% Keep

FirstService Corporation