Monday, July 24th, 2006
Three Canadian GARP picks
Jennifer Law, a portfolio manager for the CIBC Canadian Small Companies growth fund, outlined her GARP strategy in this interview.
“I’m a GARP (Growth at a Reasonable Price) manager. On my dream list would be an under-followed company, one that is early in its growth rate. Also, we look for great management that owns quite a bit of the stock. I’m buying growth, preferably at a lower P/E than the market. I find that in the Canadian market you have to be in a story early and you typically find that in under-followed companies before their growth rate is fully discounted into the market. So, you want to look for good management with a good business plan and you want to be in an industry that is growing, not necessarily spectacular but good fundamentals to the industry. Our investment horizon is two to three years, so over the next two to three quarters we want to see an inflection point of something - either introducing some new products or consolidating. That makes the earnings growth higher than the rest of the group or the rest of the market.”
Law also picked three stocks she finds interesting:
- Global Railway Industries
- Vicwest Income Fund
- Medisystem Technologies
Word Count: 201. This entry was posted on Monday, July 24th, 2006 at 7:32 pm and is filed under GARP, Stock picks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
