Another quarter, another ROE reporter.
This april, the ROE reporter is interesting. Jason states once again that the two best sectors to invest in are healthcare and technology. I agree with him. Even with the huge shitstorm I've been through with Valeant, Concordia Healthcare and, to a minor extent, Allergan and Gilead today, I still love healthcare stocks. Some of these stocks offer the best mix "high ROE - low debt - low beta" you can get (see Gilead, Biogen and Novo Nordisk for instance).
And I like tech stocks too. Not as much as healthcare stocks, but these stocks usually have a low beta and achieve good growth (Constellation Software is the only great name with a super ROE in Canada in my opinion. Enghouse and Open Text are OK but they have an average ROE).
The ROE reporter presents some established names with a a good ROE and a fair PE ratio. It presents also a list of emerging companies that look promising (like Biosyent, CRH medical (still don't like that one) or Tucows (I like that one)).
You should take a look at these two lists of great canadian companies. It's a great way to find new ideas.
In my opinion, the best listed companies on the ROE reporter are:
CCL Industries (the ROE is not as high as the others, but everything else looks great with that company)
I have to admit that I don't understand how Jason gets his ROE numbers for some companies (for instance, the ROE of CRH, Pulse Seismic, Enghouse, Open Text and Concordia Healthcare is way lower on Reuters and some other websites than the numbers of Jason). If a company doesn't earn money, I don't see how we should adjust the numbers to make like they generate money. Well, if you ask me, I'll tell you I'm not giving chances to any fucking company anymore. I ain't no fucking Mother Teresa.
Anyway, she's fucking dead.