5i Filter - Value Stocks with Momentum

Ryan M Sep 07, 2014

For the September filter we are going to look at companies showing recent momentum while still displaying value characteristics. Often when a stock is trading near a 52 week high, it is also trading at a richer valuation due to the strength. We thought it would be interesting to see names that have experienced recent strength but have less risk of being overpriced due to investors rushing into successful names and bidding the price up. Studies have shown that momentum investing can be a successful strategy and we are fans of momentum at 5i Research as it is usually a good indicator that positive things are happening at a company. 

The filter returned 16 companies trading on Canadian exchanges. The metrics used were:

  • Price high in last 5 days
  • Dividend yield greater than 1%
  • Forward P/E ratio less than 15

The first metric relates to momentum while the final two intend to tilt the results toward value stocks. Dividends and low P/E ratios are typically characteristics attributed to value stocks.

Ticker Company Name Dividend Yield Fwd P/E 
MKP.TO MCAN Mortgage Corp 7.6% 11.36
SDY.TO Strad Energy Services Ltd 4.5% 10.41
BMO.TO Bank of Montreal 3.5% 12.66
CAR_u.TO Canadian Apartment Properties REIT 4.7% 12.59
CM.TO Canadian Imperial Bank of Commerce 3.6% 11.81
FC.TO Firm Capital Mortgage Investment Corp 7.4% 13.11
CHRb.TO Chorus Aviation Inc 8.6% 6.63
BEI_u.TO Boardwalk Real Estate Investment Trust 2.8% 11.07
CSE.TO Capstone Infrastructure Corp 6.8% 11.44
MRT_u.TO Morguard Real Estate Investment Trust 5.0% 8.29
NA.TO National Bank of Canada 3.1% 11.78
TPK.TO Ten Peaks Coffee Company Inc 4.7% 11.52
SXP.TO Supremex Inc 4.6% 8.11
TMA.TO Trimac Transportation Ltd 4.0% 11.94
WJA.TO WestJet Airlines Ltd 1.3% 13.12


The results return a mix of aviation, financial and real-estate companies with a large number paying a dividend well over 3%. We were not surprised to see Trimac Transportation, a 5i Research coverage company, make the list in the midst of the recent Contrans and Transforce deal.           

1 comment


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Sep 9, 2014
This is my first comment.
Your results are driving me crazier Peter…good work.
One of the bits of CASH I have sitting around is 36,000 sitting in my 23 yr. old daughter's TFSA in the 1.2% savings account.
So, what should I do ???
She has no need for this money in the next 10 years or so.