In yesterdays post I explained that I have been testing some stock screening programs. I have one that is not bad called Bottom Feeders. The idea is to find stocks that are ready to go up. Once they are up, it is too late to buy. I figure it is more helpful to find them before they take off. Today’s scan only returned one stock.
Today’s pick is Chesswood Group listed on the TSX exchange. This company provides capital for small business to finance/lease equipment. It has been bouncing around the $3 to $4 range the last week or so. That is down from a pretty steady $9 to $10 range before covid. So there is definitely some upside potential here. The only caution that I have on this one, is that the company deals mostly with small businesses. Small business is absolutely the biggest employer in Canada and North America. But they are also one of the hardest hit groups during this pandemic. So it might be tough on Chesswood business. If most of their clients come back, and make payments again, I can see the stock going back to its $9.00 range in the next 12 months.
My guess is, that it will not advance much in the next week, which is why I rate it FLAT. If the US starts opening businesses again, it might spike up. I would keep a close eye on this one. It is on my watch list.
REMEMBER THESE ARE IN NO WAY RECOMMENDATIONS FOR YOU TO BUY ANYTHING!! INVESTING INVOLVES RISK, LIKE LOOSING YOUR MONEY, AND THERE ARE NO GUARANTEES!!! Especially in this volatile environment.
Lets see what tomorrow’s scan brings.