Globe says GLG, others have unattractive trends

GLG Life Tech Corp (2) (C:GLG)
Shares Issued 32,661,212
Last Close 4/11/2011 $9.46
Tuesday April 12 2011 - In the News

Also Indigo Books & Music Inc (C:IDG) In the News
Also Hanfeng Evergreen Inc (C:HF) In the News
Also Flint Energy Services Ltd (C:FES) In the News
Also Corridor Resources Inc (C:CDH) In the News
Also San Gold Corp (C:SGR) In the News

The Globe and Mail attempts to identify Canadian stocks worth avoiding in its Tuesday edition. The Globe's Scott Adams writes in the Number Cruncher column that he looked for stocks with negative momentum indicators such as low price relative to 52-week high, poor price change over the last three months, poor price change over the last six months, negative earnings surprises in the last quarter, unattractive trends in three-month change in forward earnings estimates and poor earnings growth (quarter over quarter). Mr. Adams's negative picks are 75-per-cent determined by price factors and earnings factors account for the remainder. This portfolio, going back to the end of 1985, has underperformed the S&P/TSX total return index by 21 percentage points annualized. In other words, it has fallen 12 per cent annualized versus a positive return of 9 per cent for the benchmark. CPMS consultant Jamie Hynes says, "There are sure to be some bargains on this list that have nowhere to go but up, but history suggests that this is a very dangerous strategy." Stocks to avoid are GLG Life Tech, Sandvine, Hanfeng Evergreen, Flint Energy Services, Corridor Resources, San Gold, Indigo Books & Music and First Uranium.

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