Globeinvestor Tips and Tricks: a monthly newsletter

July Issue

Welcome to the July edition of Globeinvestor Tip & Tricks. You can retrieve back copies by clicking the Help & Contact Us link on the home page.


ROB Top 1000: Your guide to Canada's most profitable firms

This month on globeinvestor.com, we're featuring the ROB Top 1000 ranking of Canada's most profitable companies. Use the rankings to pick top stocks and make informed investing decisions. You can even download a copy.

The Globe and Mail's ROB Top 1000 is your complete on-line guide to corporate performance in Canada. It's the definitive ranking of the Top 1000 companies, and the only ranking by profit.

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Best Performers

Top 5 companies by profit
2000
Ranking
1999
Ranking
Company Profit Revenue
1 1 BCE Inc. 4,861,000 18,209,000
2 3 Royal Bank of Canada 2,274,000 22,841,000
3 7 Cdn. Imp. Bank of Commerce 2,060,000 23,124,000
4 4 Bank of Nova Scotia 1,926,000 18,996,000
5 12 Thomson Corp. 1,251,000 6,569,000
5 Top-performing stocks
2000
Ranking
Company 5 Year Share Appreciation % 1 Year Return on Common Equity %
1 CGI Group 6,355.17 8.98%
2 C-Mac Industries 3,128.92 9.91
3 Velvet Exploration 2,087.50 20.71
4 Bonavista Petroleum 1,952.29 44.08
5 Baytex Energy 1,860.78 14.37
5 Top tech companies
2000
Ranking
Company Revenue $000 Profit $000
1 Nortel Networks Corp. 31,401,000 -2,957,000
2 Bombardier Inc. 16,194,000 975,000
3 Celestica Inc. 9,788,825 206,679
4 Teleglobe Inc. 2,241,900 -1,083,700
5 General Electric Canada 3,145,699 178,778

View the complete Top 1000 rankings


Company spotlight

Manulife Financial (Profit Rank: 11)Worldly Ambitions
To take on the banks, Canada's largest insurer has grand plans at home and abroad

Corus Entertainment (Profit Rank: 83)Kids, Music and More
Bay Street Wants Corus Entertainment to stick to kids' TV programming and music. But CEO John Cassaday has a bigger vision

360networks Incorporated (Profit Rank: 983)Out Stay the Lights
360networks has hit the wall almost as fast as it came out of the gate in 2000


Download your Top 1000 spreadsheet

To create your own personalized view of ROB Top 1000 data and sort and analyze it in a way that's meaningful to you, download a copyin Microsoft Excel format. Slice it! Dice it! Use it to:

  • develop sales prospects. For example, find all the oil and gas companies headquartered in Calgary, Alberta with 2000 revenue greater than $1 billion.
  • conduct competitive analysis. Compare Canadian companies based on revenue, EPS, P/E, dividend yield and more.
  • research career opportunities.

The downloadable Top 1000 spreadsheet includes information that is not available in our on-line versions. Download your own copy.

ROB Top 1000 Mailing Lists

Get your own custom mailing lists of the ROB Top 1000. Contact our List Manager, Lynda Robinson at the Cornerstone Group of Companies.
Telephone: (416) 932-9555 x 117
Fax: (416) 932-9566
E-mail: lynda@cstonecanada.com


Tip of the month: Filtering on P/E ratio

Price-to-earnings, or P/E, ratio is traditionally used by value investors to gauge whether a company's share price is justified in relation to its profits. It's defined as the closing market price of a stock, divided by earnings per share. The average P/E for the TSE 300 has been around 27 recently. You can use globeinvestor.com's filters to pick top performing stocks with low P/Es.

  1. Visit http://www.globeinvestor.com
  2. Click Filter on the black bar at the top of the page. Globeinvestor.com's filters will appear.
  3. Click the Intraday Price Filtertab to go to that filter.
  4. From the "Exchange" drop-down list, select Toronto.
  5. From the "Price greater than $" drop-down list, select 5. This will isolate substantially-sized companies.
  6. From the "P/E Ratio" drop-down list, select Less. In the "Than" field, enter 20. Many value investors are uncomfortable with a P/E higher than 20.
  7. From the "Report Type" drop-down list, select Price Report - % Change.
  8. Click Go. A price report will be shown for stocks that meet the above criteria.
  9. To see the stocks with a low P/E that have performed well this year, click the YTD(% Change) column heading to sort.

You can use the "Find Out More" icons to do further research. The filters provide a simple way to weed through thousands of companies in order to isolate the select few that you wish to research.


Investing Principles of Warren Buffett

This month's R.O.B. Magazine features a profile of Warren Buffett, the man widely considered the world's most successful investor. In 1965, Buffett took control of Berkshire Hathaway, a struggling textile manufacturer. Berkshire shares traded then at $13; recently, they changed hands at $68,600 (the shares, which have never been split, are the world's most expensive publicly traded shares). A $1,000 investment then was worth $6 million at the end of last year. In Berkshire's 36 years as a public holding company, there has not been a single year in which Berkshire lost money or its book value declined.

R.O.B. Magazine's Jade Hemeon notes some of the conservative investing principles that have helped Buffett stay out of trouble.

  • Be a long-term investor and invest with the best. As a shareholder in Berkshire, your future is tied to Buffett's. He owns close to 40% of the company, and has 99% of his wealth in Berkshire. He has never sold any of his shares.
  • No stock splits, ever. A high stock price means you can make a meaningful investment with fewer shares and lower brokerage commissions.
  • No dividends. Instead of paying taxable dividends to shareholders, all earnings are reinvested to provide future growth.
  • Don't overcompensate managers. Buffett's salary is only $100,000 a year. There are no stock options, which he considers an expense that favours management and dilutes the value of the shares.
  • Sell holdings rarely. Buy carefully and, when possible, hold forever. This defers taxes on capital gains.
  • Develop long-term relationships. Buffett and Charlie Munger have been business partners since 1978. In 36 years, Berkshire has never had a manager of a significant subsidiary voluntarily leave to join another business.

Read the full story.


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