Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
BMO chief strategist Brian Belski is bullish on Canadian small caps,
“Canadian small-cap equities represent value within a value market and continue to show improving and relatively strong earnings growth (not a value trap) versus their large-cap peers. As such, we prefer to lean on the Canadian small-cap universe for both attractive value and GARP opportunities. Indeed, while small caps have remained largely ignored by the majority of investors over the last few years, there has been a clear upswing in acquisition activity that we believe reflects an increasing recognition of the fundamental value these stocks possess. In fact, the Canadian SMID-cap universe has already exhibited 13 completed and/or pending acquisitions so far this year, the strongest acquisition activity in the first seven months of the year since 2007. From our…
