The TSX stocks on our list have very low Relative Strength Index (RSI) scores
SmallCapPower | April 3, 2018: Trading volumes on the TSX have declined 6% YTD, with the TSX itself falling 6% as well. Today, we have identified four TSX stocks with low Relative Strength Index (RSI) scores. RSI is a measure of price momentum. Values above 70 indicate that a stock may be overbought, while values below 30 indicate it may be oversold. These companies could see a sharp reversal if the market believes they are oversold.
Cogeco Inc. (TSX:CGO) – $68.49
Broadcasting
COGECO is a Canada-based telecom company operating in Ontario, Quebec, and the East Coast. The Company offers cable, Internet and telephone services via its Cogeco and Atlantic Broadband brands. Cogeco also operates Cogeco Media, a Quebec-based radio company with the leading share in hours listened in Montreal and Quebec City.
- Market Cap: $1,006.2 Million
- RSI Simple – 14 Days: 6.6
- 14 Day Total Return : -2.0%
- 3 Month Total Return: -23.9%
Prometic Life Sciences Inc. (TSX:PLI) – $0.88
Pharmaceuticals
Prometic Life Sciences is a Canada-based pharmaceutical company. The Company’s primary focus, its therapeutics division, develops 11 new drugs focused on tissue/organ repair, inflammation and fibrosis, and its interactions with diabetes. Prometic also operates plasma donation centres and a large-scale protein purification division, which offer a variety of adsorbents.
- Market Cap: $626.8 Million
- RSI Simple – 14 Days: 6.8
- 14 Day Total Return : -37.6%
- 3 Month Total Return: -32.3%
Eldorado Gold Corp. (TSX:ELD) – $1.08
Gold
Eldorado Gold is a Canada-based gold producer with operations in Turkey, China, Greece, Romania and Brazil. The Company has three operating mines and several projects under development, and acquired Integra Gold, located in Quebec, in May 2017 for $590M. Company management has guided a 160,000-190,000 oz. production for 2018.
- Market Cap: $857.5 Million
- RSI Simple – 14 Days: 7.0
- 14 Day Total Return : -22.3%
- 3 Month Total Return: -40.7%
NexGen Energy Ltd. (TSX:NXE) – $2.22
Uranium
NexGen is a Canada-based uranium miner, operating in the Athabasca Basin in Alberta. The Company holds over 260,000 hectares, 95% of which is currently underexplored. The Company’s Arrow project PEA holds an after-tax NPV5% of $1.0B at an IRR of 27.0% at the current market price of US$25/lb U3O8.
- Market Cap: $762.2 Million
- RSI Simple – 14 Days: 8.8
- 14 Day Total Return : -16.5%
- 3 Month Total Return: -30.8%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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