Break Out Stocks 2006 Q4 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. Since it's the year end, we will also drop any stocks that have lost ground over the full year unless they have strong earnings growth or are in a current up trend.

The table below gives the complete picture. Dropped are Melcor Developments, a stellar performer which seems to have stalled, Transforce Income Fund, also a good performer which lost over 20% during the year, Canada Bread, also a good performer but which has slowed down and suffered a loss in the last quarter, La Senza which has been spectacular this year but has now been delisted after takeover by the Victoria's Secret folks, McCoy which is going nowhere, Pareto, also a non-starter, March Networks which recently lost a major customer and crashed mightily and finally Big Rock Brewery Income Fund which has been sluggish.

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

Price
End Q4

Change
Q4

Change
YTD

Change
Since
Profiled

Recent
Trend
QEPS
Change
Status

Melcor Developments

MRD

Mar. 2/01

$2.03

$18.34

-4.48%

54.77%

803.45%

i -52.46% Drop

Alimentation Couche-Tard

ATD.SV.B

Dec. 4/00

$2.88

$25.35

6.24%

8.33%

781.74%

i +33.33% Keep

Stantec Inc.

STN

Apr. 20/01

$4.13

$25.25

23.47%

27.04%

512.12%

h +12.5% Keep

SNC-Lavalin Group

SNC

Mar. 23/01

$5.42

$31.47

9.42%

23.75%

480.63%

g +55.56% Keep

Zargon Oil & Gas

ZAR.UN

Jan. 29/01

$4.70

$24.79

-23.01%

-21.92%

427.45%

i +87.18% Keep

ZCL Composites

ZCL

June 20/04

$2.05

$10.35

77.53%

173.09%

404.88%

h +75.00% Keep

TransForce Income Fund

TIF.UN

Jan. 18/02

$3.02

$13.49

-18.83%

-20.93%

346.69%

g -48.89% Drop

Goldcorp Inc.

G

May 25/01

$7.83

$33.11

25.61%

27.84%

322.86%

i -6.67% Keep

Canada Bread Co.

CBY

May 18/01

$13.00

$54.10

-8.85%

-8.31%

316.15%

g L Drop

Niko Resources

NKO

Nov. 17/02

$22.20

$83.35

25.34%

50.94%

275.45%

h L Keep

CCS Income Fund

CCR.UN

May 18/03

$10.15

$37.75

3.57%

2.03%

272.10%

h +68.75% Keep

Richelieu Hardware

RCH

Dec. 4/00

$7.00

$24.24

15.37%

2.28%

246.29%

g +22.58% Keep

Trican Well Service

TCW

Apr. 18/04

$6.08

$20.32

7.91%

-27.43%

234.21%

i +48.39% Keep

Contrans Income Fund

CSS.UN

Oct. 12/01

$3.63

$12.02

-15.35%

-14.51%

231.13%

g +16.67% Keep

La Senza

LSZ

April 17/05

$14.65

$47.99

50.58%

152.58%

227.58%

h 221.05% Drop

Fortis Inc.

FTS

Mar. 16/01

$9.50

$29.77

21.81%

22.66%

213.37%

h +8.33% Keep

Finning International

FTT

May 11/01

$16.40

$47.79

27.75%

28.68%

191.40%

h -16.00% Keep

Aur Resources

AUR

Oct. 16/05

$8.57

$24.26

34.78%

105.94%

183.08%

i +163.64% Keep

AlarmForce

AF

Sept. 21/03

$1.92

$5.10

9.68%

29.11%

165.63%

h +100.0% Keep

Cameco Corp.

CCO

Nov. 19/04

$18.44

$47.20

15.89%

27.93%

156.03%

h -9.52% Keep

BMTC Group

GBT.SV.A

Aug. 20/02

$6.98

$17.61

-2.71%

10.06%

152.47%

i +2.17% Keep

Steepleback Industrial Group

SID

Jan. 18/04

$2.95

$7.25

20.83%

2.11%

145.76%

h T Keep

CML Healthcare Income Fund

CLC.UN

Apr. 12/02

$5.85

$13.95

-13.19%

-3.13%

138.46%

h +12.00% Keep

Stella-Jones Inc.

SJ

Feb. 19/06

$15.75

$34.50

64.29%

119.05%

119.05%

h +81.25% Keep

TSX Group

X

Jan. 18/04

$22.50

$46.61

-4.92%

-0.47%

107.16%

g +14.29% Keep

Garda World Security

GW

Aug. 21/05

$12.15

$21.84

-3.15%

44.44%

79.75%

h +53.85% Keep

Sino-Forest Corporation

TRE

Dec. 18/05

$4.40

$7.83

83.37%

58.50%

77.95%

h +33.33% Keep

Pason Systems

PSI

May 16/04

$7.50

$13.26

-15.97%

-8.24%

76.80%

i +22.22% Keep

Research In Motion

RIM

Sept. 19/04

$94.82

$149.00

30.03%

94.14%

57.14%

g +52.46% Keep

WFI Inc.

WFI

May 19/06

$16.80

$26.00

3.59%

54.76%

54.76%

g +78.57% Keep

Le Chateau

CTU.SV.A

June 19/05

$39.06

$60.00

40.35%

25.05%

53.61%

g +36.36% Keep

Teck Cominco

TCK.B

Dec. 18/05

$57.75

$87.90

25.57%

41.66%

52.21%

g +17.00% Keep

Potash Corporation

POT

June 19/05

$119.85

$167.00

43.94%

79.38%

39.34%

h +17.09% Keep

McCoy Brothers

MCB

May 15/05

$4.65

$6.10

-12.86%

-3.17%

31.18%

i -33.33% Drop

Gildan Activewear

GIL

Sept. 18/05

$42.01

$54.49

0.28%

8.98%

29.71%

i +27.08% Keep

Inmet Mining

IMN

Oct. 16/06

$50.85

$62.41

22.73%

22.73%

22.73%

g +188.75% Keep

Parkland Income Fund

PKI.UN

Sept. 18/06

$31.94

$38.49

28.17%

20.51%

20.51%

h +71.79% Keep

Silver Wheaton

SLW

July 17/06

$10.40

$12.22

16.49%

17.50%

17.50%

i +150.00% Keep

COM DEV International

CDV

Sept. 18/06

$5.73

$6.46

4.36%

12.74%

12.74%

g +166.67% Keep

Commercial Solutions

CSA

May 21/06

$7.09

$7.85

15.44%

10.72%

10.72%

h +55.56% Keep

Pareto Corp.

PTO

Aug. 21/05

$1.13

$1.20

9.09%

-12.41%

6.19%

g +0.00% Drop

Ritchie Brothers

RBA

Mar. 19/06

$59.30

$62.49

4.48%

5.38%

5.38%

h +115.38% Keep

Logibec Groupe Informatique

LGI

Nov. 20/06

$16.25

$16.55

1.85%

1.85%

1.85%

h +200.00% Keep

RDM Corporation

RC

Dec. 20/06

$4.20

$4.14

-1.43%

-1.43%

-1.43%

h +166.67% Keep

GMP Capital Trust

GMP.UN

June 16/06

$22.50

$21.80

2.59%

-3.11%

-3.11%

h +33.33% Keep

Dynatec

DY

Dec. 20/06

$2.21

$2.13

-3.62%

-3.62%

-3.62%

g +110.00% Keep

March Networks

MN

Nov. 20/05

$22.50

$21.35

13.44%

-33.96%

-5.11%

i -71.88% Drop

Carfinco Income Fund

CFN.UN

Aug. 21/06

$3.88

$3.60

-13.25%

-7.22%

-7.22%

h +28.57% Keep

Paladin Labs

PLB

Nov. 20/06

$11.52

$10.60

-7.99%

-7.99%

-7.99%

i +160.00% Keep

Aber Diamonds

ABZ

Jan. 15/06

$46.77

$43.00

20.96%

-8.06%

-8.06%

g -44.83% Keep

FirstService Corporation

FSV

Feb. 19/06

$29.50

$27.00

1.50%

-8.47%

-8.47%

i -13.67% Keep

Ensign Energy Services

ESI

Nov. 20/05

$20.12

$18.39

-0.86%

-21.61%

-8.60%

i +247.37% Keep

Foremost Income Fund

FMO.UN

June 16/06

$17.15

$15.65

-19.33%

-8.75%

-8.75%

i +82.86% Keep

Pacific & Western Credit

PWC

Aug. 21/06

$12.95

$11.50

-2.13%

-11.20%

-11.20%

i -23.08% Keep

MacDonald Dettwiler

MDA

April 16/06

$50.40

$42.80

13.53%

-15.08%

-15.08%

g +19.51% Keep

Big Rock Brewery Income Trust

BR.UN

Oct. 15/04

$16.05

$13.60

-29.72%

-29.50%

-15.26%

i +21.62% Drop

Wajax Income Fund

WJX.UN

May 19/06

$41.79

$34.25

-2.70%

-18.04%

-18.04%

h +94.64% Keep

Vicwest Income Fund

VIC.UN

June 16/06

$15.98

$10.18

-43.44%

-36.30%

-36.30%

h -39.89% Keep
Total Gain         574.05% 1031.70% 7496.98%      
Average Gain         9.90% 17.79% 137.02%      

Dropped in Q4 (with YTD and Total Gain in brackets) are Melcor Developments (54.77%, 803.45%), Transforce Income Fund (-20.93%, 346.69%), Canada Bread (-8.31%, 316.15%), La Senza (152.58%, 227.58%), McCoy (-3.17%, 31.18%), Pareto Corporation (--12.41%, 6.19%), March Networks (-33.96%, -5.11%), Big Rock Brewery Income Fund (-29.50%, -15.26%)

Dropped in Q3 (with YTD and Total Gain in brackets) were Home Capital Group  (-11.65%, +923.33%), Peyto Energy Trust (-21.50%, +673.98%), Reitman’s (+11.85%, +656.94%), Falconbridge (+80.64%, 217.47%), RONA Inc. (-1.31%, +65.71%), Western Lakota Energy Services (-11.98%, +61.69%), easyhome (+1.27%, +23.71%), Sherritt International (-3.47%, +12.59%), Xceed Mortgage Corporation (-12.70%, +8.91%), Intrawest (+2.58%, +2.58%), Savannah Energy Services (-36.01%, -5.43%), Royal Gold (-23.63%, -7.76%), Calfrac Well Service (-45.78%, -40.54%), Cryptologic (+7.98%, -41.43%), and Centurion Energy (-39.33%, -52.60%)

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