Canam Surges After Mention at Value Conference
Canam Group Inc. (CAM), a manufacturer of construction materials including steel, rose the most in almost four years after an investment manager called the stock undervalued and recommended it at a conference in New York.
Canam climbed 12 percent to close at C$5.67 in Toronto, its biggest one-day gain since Oct. 20, 2008. The Saint-Georges, Quebec-based company has increased 38 percent this year.
Guy Gottfried, manager of Toronto-based Rational Investment Group LP, a value-oriented investment fund, made the comments at the Value Investing Congress.
The company had been trading at 0.7 times book value, which didn’t reflect its strong position in the U.S. and Canadian commercial markets, particularly after its 2010 purchase of U.S. steel fabricator FabSouth LLC, Bastien said. Bastien has the equivalent of a buy rating on the stock.
“It should grow at an above-industry average,” he said. “It will continue to win market share in its markets.”
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