Currency Risk
Currency risk is the risk that movement in exchange rates will negatively impact investments that are held in foreign currencies. For example, an increase in the Canadian dollar makes American stocks worth less to Canadian investors.
H.J. HEINZ CO. $35 (New York symbol HNZ; Income Portfolio, Consumer sector; Shares outstanding: 315 million; Market cap: $11 billion; Price-to-sales ratio: 1.1; WSSF Rating: Above Average) is a leading maker of condiments. Its flagship product, Heinz Ketchup, makes up about 60% of all ketchup sold in the U.S. Heinz also makes frozen potatoes (under the Ore-Ida brand), pasta sauces …read more »
TOYOTA MOTOR CORP. ADRs $104 (New York symbol TM, Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.8 billion; Market cap: $187.2 billion; WSSF Rating: Above average) is the world’s second-largest car maker after General Motors. Each Toyota ADR represents two of Toyota’s common shares.
The company spends about 4% of its revenue on research. This spending has helped Toyota …read more »
Growing interest in the environment continues to prompt changes in consumer spending habits. Here are five companies with the technology and size to profit from this trend.
GENERAL ELECTRIC CO. $37 (New York symbol GE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 10.0 billion; Market cap: $370.0 billion; WSSF Rating: Above average) is one of the world’s largest industrial …read more »
FORDING CANADIAN COAL TRUST $37 (Toronto symbol FDG.UN; Aggressive Growth Portfolio, Resources sector; Units outstanding: 147.9 million; Market cap: $5.5 billion; SI Rating: Average) is a major producer of metallurgical coal, a key ingredient in steelmaking. Its proven reserves should last 25 years. With further development, Fording’s reserves could last 100 years.
Fording’s main asset is its 60% interest in the …read more »
The drop in the U.S. dollar hurts Toyota and Honda since earnings in the United States now translate into fewer Japanese yen. However, both are building more of their cars here, which cuts their currency risk. Their strong reputations for quality and fuel efficiency should also let them expand profits despite high gas prices and the slowdown in the housing …read more »
YUM! BRANDS INC. $37 (New York symbol YUM; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 508.6 million; Market cap: $18.8 billion; SI Rating: Average) is the largest fast-food operator in the world in terms of number of locations, with 34,500 outlets in more than 100 countries.
Its major chains include KFC (fried chicken), Pizza Hut, Taco Bell (Mexican food), Long John …read more »
MAPLE LEAF FOODS INC. $16 (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 127.2 million; Market cap: $2.0 billion; SI Rating: Average) is a leading producer of fresh and frozen meat products. It also owns 88% of Canada Bread (see at right).
At current prices, Canada Bread accounts for around $10 of each Maple Leaf share. That means the …read more »
TRANSCONTINENTAL INC. $22 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 85.8 million; Market cap: $1.9 billion; SI Rating: Average) is the largest commercial printing firm in Canada, and the sixth largest in North America.
The company gets about half of its revenue from its marketing division, which prints catalogues, flyers and other advertising materials. Transcontinental also helps its …read more »
The printing and newspaper publishing industry has fallen out of favour with investors in the past few years, as advertisers move to the Internet and away from traditional printed ads.
But Transcontinental has cut its reliance on traditional printing/publishing with faster-growing operations, such as direct marketing. Recent investments in new plants and presses also cut its long-term operating costs.
Much of Transcontinental’s …read more »
THE TUPPERWARE BRANDS CORP. $26 (New York symbol TUP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 61.1 million; Market cap: $1.6 billion; WSSF Rating: Above average) makes high-quality products for the home and kitchen, including plastic food and beverage containers and children’s educational toys. The company also makes a wide range of beauty products, including cosmetics, bath oils and fragrances. …read more »
