The S&P/TSX Composite index spent another week treading water, adding a mere 0.4 per cent for the past five trading sessions. On a Relative Strength Index (a technical indicator measuring momentum) basis, the domestic benchmark sits right at the overbought sell signal of 70.
The S&P/TSX right now is technically overbought and more expensive than the S&P 500 on both forward and trailing earnings. All of these things are regrettable for the market at large, particularly for investors looking to hold the entire index.
According to Bloomberg data, Talisman’s valuations are are out of whack – the forward price-to-earnings ratio is 109 times – but analysts remain reasonably positive on the stock. The average 12-month price target for the stock is $14.09, which is 28 per cent higher than Thursday’s closing price.
Talisman has responded well to the RSI buy signal over the past two years. In May 2012, the RSI dipped to 23 and the stock rallied 33 per cent over the next four months. Similar, if less dramatic gains were made after buy signals in November of 2012 and December of 2013.
Talisman is a much different company now after asset sales, so this is one case where it’s really important for investors to do fundamental research before going anywhere near it.
The small print applies to technical indicators like RSI, as usual. I’m using the 14-day RSI, the most widely used version, and the readings can change extremely quickly. I strongly advise that no trader or investor buy any stock based solely on technical indicators – they need to be combined with fundamental research.
|RSI||1W Return %||PE Ratio TTM||PE Ratio Fwd|
|Aimia Inc||AIM||20.19||-3.37||#N/A N/A||23.58|
|Talisman Energy Inc||TLM||28.48||-2.78||#N/A N/A||109.87|
|Lightstream Resources Ltd||LTS||30.99||-9.82||16||24.67|
|Rona Inc||RON||31.38||-1.56||#N/A N/A||14.37|
|Parkland Fuel Corp||PKI||89.83||10.6||16.04||#N/A N/A|
|Jean Coutu Group Inc-Class A||PJC.A||83.76||5.03||15.73||18.35|
|Can Imperial Bk Of Commerce||CM||83.3||2.91||10.68||10.87|
|Imperial Oil Ltd||IMO||82.35||4.53||14.66||11.51|
|Ccl Industries Inc - CL B||CCL.B||79.75||4.48||23.36||16.72|
|Canadian Energy Services & T||CEU||78.86||3.83||63||30.96|
|Novagold Resources Inc||NG||78.8||19.05||#N/A N/A||#N/A N/A|
|Ithaca Energy Inc||IAE||78.05||10.53||5.15||5.88|
|Onex Corporation||OCX||75.6||4.43||#N/A N/A||175.09|
|Tahoe Resources Inc||THO||75.46||6.2||#N/A N/A||34.34|
|Magna International Inc||MG||75.07||8.07||13.19||11.86|
|Pason Systems Inc||PSI||74.86||6.08||36.91||19.79|
|Aecon Group Inc||ARE||74.2||5.86||21.24||14.23|
|Capital Power Corp||CPX||73.46||6.33||11.79||18.35|
|Legacy Oil + Gas Inc||LEG||73.31||9.03||#N/A N/A||27.59|
|Firstservice Corp||FSV||73.19||2.65||#N/A N/A||19.12|
|Alacer Gold Corp||ASR||73.13||3.99||#N/A N/A||12.84|
|Element Financial Corp||EFN||72.95||6.44||72.38||24.84|
|Fairfax Financial Hldgs Ltd||FFH||72.92||4.11||22.96||30|
|Silver Standard Resources||SSO||72.58||4.81||7.27||#N/A N/A|
|Gibson Energy Inc||GEI||71.67||5.6||25.5||30.36|
|Calfrac Well Services Ltd||CFW||71.26||5.64||58.45||25.78|
|Allied Properties Real Estat||AP-U||70.86||4.76||9.93||18.2|
|Bankers Petroleum Ltd||BNK||70.78||5.36||23.27||15.01|
|Genworth Mi Canada Inc||MIC||70.76||9.02||10.43||10.39|
|Trinidad Drilling Ltd||TDG||70.34||4.6||19.29||16.81|
|Osisko Mining Corp||OSK||70.34||6.81||#N/A N/A||36.38|
|Major Drilling Group Intl||MDI||70.33||8.74||#N/A N/A||35.48|
|Meg Energy Corp||MEG||70.28||2.27||#N/A N/A||22.61|
|Bellatrix Exploration Ltd||BXE||70.26||6.71||26.84||15.6|
|Shoppers Drug Mart Corp||SC||70.07||0.43||20.4||19.14|
|Loblaw Companies Ltd||L||70.06||0.35||20.69||16.6|
|Canadian Natural Resources||CNQ||69.74||1.06||19.27||14.53|
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- Aimia Inc$8.47+0.10(+1.19%)
- Updated December 2 4:15 PM EST. Delayed by at least 15 minutes.