Earnings growth at these three leading food processors has slumped in the past few years. Rising costs for ingredients, steel and plastic packaging, and transportation have cut into their profit margins. Consumer interest in healthier diets has also hurt interest in processed foods.

But each of these three have restructured their businesses to focus on their most profitable products. Better efficiency …read more »

REITMANS (CANADA) LTD. $21.75 (Toronto symbol RET.A; SI Rating: Extra Risk) (514-384-1140; www.reitmans.com; Shares outstanding: 70.3 million; Market cap: $1.5 billion) is Canada’s largest specialty women’s wear retailer. It now has 919 stores in operation, consisting of 358 Reitmans, 164 Smart Set/Dalmys, 156 Penningtons, 39 RW & Co., 124 Addition Elle, 70 Thyme Maternity and 8 Cassis stores. All Reitmans …read more »

CANADIAN UTILITIES LTD. $46 (Toronto symbol CU; Income Portfolio, Utilities sector; SI Rating: Above average) has abandoned its plan to convert its unregulated gas processing and storage businesses into income trusts after Ottawa changed the taxation rules of trusts. The company will probably hang on to these assets instead of selling them.

Now that the trust plan is dead, Canadian Utilities …read more »

ANDREW PELLER LTD. $12 (Toronto symbol ADW.A; Income Portfolio, Consumer sector; SI Rating: Above average) is the new name for Andres Wines Ltd. The company is Canada’s second-largest producer of wines (after Vincor International Inc.), with about 12% of the market. It sells its products through provincial liquor agencies, as well as roughly 100 retail stores in Ontario.

Revenues grew at …read more »

FORTIS INC. $28 (Toronto symbol FTS; Conservative Growth Portfolio, Utilities sector; SI Rating: Above average) has raised its stake in Caribbean Utilities Company, Ltd., from 37.4% to 54%. This business is the sole provider of electrical power on Grand Cayman Island.

This investment cost Fortis $48.9 million U.S., or about half of the $113.3 million (Canadian) or $1.05 a share that …read more »

CEDAR FAIR L.P. $28 earned $2.42 a unit in the third quarter of 2006, down 22.2% from $3.11 a year earlier, mainly due to a one-time gain in the year-earlier quarter. Thanks to its recent purchase of five amusement parks from CBS Corp., revenue jumped 71.0%, to $542.1 million from $317.0 million. Best Buy.

BUCKEYE PARTNERS L.P. $45 raised its distribution …read more »

VERIZON COMMUNICATIONS INC. $35 (New York symbol VZ, Conservative Growth Portfolio, Utilities sector; WSSF Rating: Average) has spun off its directories business as a separate company called IDEARC INC. $29 (New York symbol IAR; Income Portfolio, Consumer sector; WSSF Rating: Average).

Idearc publishes over 1,200 yellow pages and white pages directories in 35 states. It also owns SuperPages.com, a major online …read more »

ROYAL BANK OF CANADA $53 has invested $25 million U.S. for a 30% stake in a new joint venture that will offer asset management services in China. The amount is just 2% of its latest quarterly earnings. But the deal gives Royal a low-risk way to increase its exposure to a fast-growing market. Buy.

EMERA INC. $22 earned $0.18 a share …read more »

BANK OF AMERICA CORP. $54 (New York symbol BAC; Income Portfolio, Finance sector; WSSF Rating: Above average) hopes to give customers a reason to stick with it by giving them free stock trades. This has a big cost advantage over old-fashioned giveaway items like clocks and toasters: the marginal cost of those extra trades verges on zero.

The bank will let …read more »

Both BCE and Telus have unveiled plans to convert into income trusts, which helped spark a rise in their stock prices. Canada’s other big telecom company, Manitoba Telecom, moved up on rumors that it too would convert.

The trust structure will let BCE and Telus avoid a big tax increase in the next few years as certain tax shelters expire.

But investors …read more »