Cash ratio is the ratio of cash and cash equivalents of a company to its current liabilities. Though there are other liquidity ratios, cash ratio is considered as an extreme liquidity ratio since only cash and cash equivalents are compared with the current liabilities. Companies with a cash ratio of 1.0x and above will be able to pay all their current liabilities in immediate short term without default.
Today we have shortlisted 10 Canadian stocks
across sectors with cash ratios greater than 1.0 for fiscal year 2013.
Additionally, these stocks are expected to report high ROE estimates (>12%)
for fiscal year 2014. Additionally, these stocks are expected to report high ROE estimates (>12%) for fiscal year 2014. We note that during the past one month, majority of the stocks have registered price gains with daily average trading volumes in excess of 100,000.
| Company Name |
Ticker |
Exchange |
Sector |
Market Cap |
Last Price |
Average Volume |
Price Change (1-Month) |
Cash Ratio 2013 |
ROE 2014(E) |
|
Klondex Mines Ltd |
KDX |
TSX |
Basic Materials |
221.1 |
1.82 |
468,036 |
2.2% |
1.0 |
13.8% |
|
Pason Systems Inc |
PSI |
TSX |
Energy |
2,184.2 |
26.35 |
184,624 |
-9.6% |
1.1 |
31.3% |
|
Petroamerica Oil Corp |
PTA |
TSXV |
Energy |
231.0 |
0.27 |
2,408,331 |
1.9% |
1.9 |
16.0% |
|
Computer Modelling Group Ltd |
CMG |
TSX |
Technology |
896.6 |
11.40 |
124,696 |
3.5% |
2.0 |
46.3% |
|
Great Canadian Gaming Corp |
GC |
TSX |
Consumer Discretionary |
1,471.6 |
21.64 |
106,397 |
18.6% |
2.7 |
20.0% |
|
Sandvine Corp |
SVC |
TSX |
Technology |
428.8 |
2.85 |
663,750 |
13.5% |
2.9 |
15.5% |
|
Wi-Lan Inc |
WIN |
TSX |
Technology |
462.8 |
3.85 |
373,129 |
14.6% |
3.0 |
19.5% |
|
Lucara Diamond Corp |
LUC |
TSX |
Basic Materials |
860.3 |
2.27 |
367,988 |
12.4% |
3.2 |
38.7% |
|
Avigilon Corp |
AVO |
TSX |
Industrial |
838.0 |
18.00 |
544,747 |
29.5% |
5.0 |
12.8% |
|
Nevsun Resources Ltd |
NSU |
TSX |
Basic Materials |
818.6 |
4.10 |
272,336 |
6.2% |
6.2 |
14.6% |
Source: Bloomberg
Company Description
Klondex Mines Ltd (TSX: KDX)
Klondex Mines Ltd. acquires, explores, and evaluates mineral properties. The company currently mines for gold in the State of Nevada.
Pason Systems Inc (TSX: PSI)
Pason Systems Inc. provides rental oilfield instrumentation systems that are designed and manufactured for use on land-based drilling and service rigs. The company offers both wellsite rental services and Internet data management services.
Petroamerica Oil Corp (TSXV: PTA)
Petroamerica Oil Corp. is an oil and gas exploration and production company. The company owns interests in oil and gas assets in Colombia.
Computer Modelling Group Ltd (TSX: CMG)
Computer Modelling Group Ltd. is an international computer software technology and consulting firm involved in the development and licensing of oil and gas reservoir simulation software. The company’s software assists petroleum company clients worldwide to extract significantly increased amounts of oil and gas from their reservoirs.
Great Canadian Gaming Corp (TSX: GC)
Great Canadian Gaming Corporation, through its subsidiary operates a number of casinos in British Columbia, Canada.
Sandvine Corp (TSX: SVC)
Sandvine Corporation develops and markets broadband network management tools for broadband Internet services providers.
Wi-Lan Inc (TSX: WIN)
Wi-LAN Inc. is an intellectual property licensing and technology development company. The company’s patent portfolio covers many technologies used in cellular, Wi-Fi, DSL, and cable modem standards as well as the FCC-mandated upgradable V-chip. Wi-LAN also acquires patents to license.
Lucara Diamond Corp (TSX: LUC)
Lucara Diamond Corporation is a diamond mining company. The company owns interests in diamond projects in Lesotho, Africa.
Avigilon Corp (TSX: AVO)
Avigilon Corporation manufactures surveillance equipment. The company produces high definition, network-based video surveillance systems and equipment for video capture, transmission, recording, and playback.
Nevsun Resources Ltd (TSX: NSU)
Nevsun Resources Ltd. is the operator of the Bisha Mine which began construction in 2008 and commercial production in 2011. The mine produced gold-silver dore until 2013 when the product switched to copper in concentrate and will expand to also produce Zinc concentrates.
