5 from 5i - Stocks are Driven by Sentiment, Trend, and Fundamentals

Michael Southern May 12, 2017

Home Capital Group (HCG) continues to make headlines. The company said a third party has indicated its non-binding intention to buy as much as $1B in uninsured mortgages and to buy, or accept, commitments for up to $500M in insured mortgages. Valeant Pharmaceuticals (VRX) reported its first profit in six quarters, helped by a one-time tax gain, as the drugmaker also raised its full-year earnings forecast. Business software maker Open Text (OTEX) reported a lower-than-expected quarterly profit as, expenses rose more than 50%, offsetting gains across all its businesses. Amaya Inc. (AYA) turned in a decent quarter and is proposing a corporate name change. Here are five stories we found interesting this week:

  1. Sentiment and trend drive market 'tops'; valuations can vary widely
  2. A US perspective on Home Capital Group and the Canadian economy
  3. A longer read on how higher corporate profits justify a 'new normal' P/E (page 9-15 focus)
  4. A valuation tool for expensive markets
  5. Looking for cracks in the emerging market rally

 

 

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