Investing
MANULIFE FINANCIAL $12.53 (Toronto symbol MFC; Shares outstanding: 1.8 billion; Market cap: $22.1 billion; SI Rating: Above Average; Dividend yield: 4.2%) sells life and other forms of insurance, as well as mutual funds and investment-management services. It operates globally, and has $453.9 billion of assets under management.
In the three months ended June 30, 2010, Manulife lost $2.4 billion, or $1.36 …read more »
Newell Rubbermaid took its present form in 1999, when Newell Companies bought Rubbermaid Inc. That doubled the size of the old Newell, which felt it needed to get bigger to improve its negotiating position with big retailers like Wal-Mart. Even now, Wal-Mart still accounts for 12% of the company’s sales.
The combined company went on to buy several other businesses over …read more »
MCCORMICK & CO. INC. $40 has agreed to buy 26% of Eastern Condiments Private Ltd., a leading maker of spices and seasonings in India. The deal should close by the end of 2010. McCormick is paying $35 million for this stake; it earned $66.2 million, or $0.49 a share, in the three months ended May 31, 2010. India is the …read more »
A number of our Inner Circle members have asked our opinion on global stock market investing in recent months, particularly companies that operate in fast-growing emerging markets.
Some of these companies may not be well-known to North American investors. However, if it’s possible to invest in these stocks through North American markets, our team of independent investment experts is happy to …read more »
Many Canadian firms have tried to expand into the U.S. over the years. Some, like Royal Bank of Canada (symbol RY on Toronto) have had difficulty in the United States. Other companies’ expansion efforts have failed miserably.
Canadian Tire (symbol CTC.A on Toronto) provides a memorable example of a failed U.S. expansion. In 1982, the retailer bought a chain of …read more »
INTACT FINANCIAL CORP. $44.85 (Toronto symbol IFC; SI Rating: Speculative) (416-341-1464; www.intactfc.com; Shares outstanding: 114.6 million; Market cap: $5.1 billion; Dividend yield: 3.0%) is Canada’s largest provider of property and casualty insurance, based on premiums. Its brands include Intact Insurance, Canada BrokerLink, belairdirect and Grey Power.
Intact has two product lines: Its personal products, which contribute 70% of its premiums, include …read more »
The federal government plans to phase out coal-fired power plants by around 2025. Under the proposals, utilities would have to close their coal-fired plants when they reach 45 years of age, or when their power-purchase contracts with provincial electricity regulators expire, whichever is later. Coal-plant operators may extend the lives of these plants if they can lower their carbon emissions …read more »
Great-West Lifeco and IGM Financial get a big part of their earnings from fee income that varies with the value of the securities they manage.
Rising stock markets have increased earnings at both companies. As well, both are taking fewer writedowns on bonds and mortgage-backed securities because of improving credit markets.
GREAT-WEST LIFECO INC. $25 (Toronto symbol GWO; Conservative Growth Portfolio, Finance …read more »
CANADIAN NATIONAL RAILWAY CO. $64 (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 465.4 million; Market cap: $29.8 billion; Price-to-sales ratio: 3.8; Dividend yield: 1.7%; SI Rating: Above Average) operates the largest freight rail network in Canada. It also serves 16 U.S. states. Ottawa nationalized CN in 1922, as railways were critical to Canada’s early growth. …read more »
Ottawa’s new tax on income trusts comes into effect just over four months from now, on January 1, 2011. When it does, it will put trusts on an equal footing with regular corporations.
Right now, income trusts pay out a high percentage of their cash flows to their unitholders. This lets them avoid paying corporate taxes. It also gives many …read more »
