ATS Automation Tooling Systems (TSE:ATA) shareholders are no doubt pleased to see that the share price has had a great month, posting a 37% gain, recovering from prior weakness. The bad news is that even after that recovery shareholders are still underwater by about 3.7% for the full year.
All else being equal, a sharp share price increase should make a stock less attractive to potential investors. While the market sentiment towards a stock is very changeable, in the long run, the share price will tend to move in the same direction as earnings per share. So some would prefer to hold off buying when there is a lot of optimism towards a stock. Perhaps the simplest way to get a read on investors’ expectations of