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System Commentary

Posted by zubair zeeshan at 1:34 PM

This the first entry for our TSX system. We launched the TSX system with similar parameters as the US system. We started keeping track of performance on January 16, 2003.

The markets generally have been good; especially the commodity markets and some currency markets (Canadian $ in particular).

The TSX list has performed excellently as especially well in the past year as it has demonstrated high degrees of outperformance compared to the indices. The list currently has 13 stocks which is a nice figure. We do not have the same market capitalization parameter as the US system and thus we have some larger issues such as Royal Bank (RY) and Shopper's Drug Mart (SC).

Two of our most successful identifications have been the present top two ranked issues TCW and HCG. TCW is an oil services company who's stock price has risen from $20 to $79. HCG is a very successful secondary lender who's price has appreciated over 200% in the last 2 years.

We cotinue to see a nice mix of sectors represented in the list which is pleasing. Too many stocks in a sector can cause misleading results both to the positive and negative sides.

We currently see much more value in Canadian stocks and are in fact overweighted in this area compared to US issues. Predicted softening of the US $ is another reason for this tactic. We believe that the bull market in oil and other commodities will continue and therefore expect the Canadian equity markets to outperform their southern neighbours.

 

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