Nortel revision taken as a positive sign

[闲得慌]

The Globe and Mail reports in its Wednesday, Feb. 19, edition that for investors who look to earnings revisions as a predictor of future stock performance, UBS Warburg strategist and chief economist George Vasic has highlighted seven stocks on The Toronto Stock Exchange: EnCana Corp., Suncor Energy Inc., Cameco Corp., Teck Cominco Ltd., Abitibi-Consolidated Inc., Molson Inc. and Nortel Networks. While 32 members of the S&P/TSX 60-stock index saw positive or no revisions to earnings in the fourth quarter, the seven are the only names to have positive revisions over the past quarter, expected earnings growth this year of more than 20 per cent and a "buy" rating. Mr. Vasic notes that, in contrast to the third quarter, which saw 2003 earnings estimates knocked back by 6 per cent to 8 per cent, TSX earnings rebounded 5.1 per cent in the fourth.