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Growth Stocks
SYMANTEC CORP. $21.86 - Nasdaq symbol SYMC
SYMANTEC CORP. $21.86
(Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527- 8000;
www.symantec.com
; Shares outstanding: 680.7 million; Market cap: $14.8 billion; Dividend yield: 2.7%) sells computer-security technology, including antivirus and email-filtering software, to businesses and consumers.
In 2014, Symantec said it would split into two publicly traded firms. One would keep the Symantec name and focus on antivirus and security software and services. The other, called Veritas Technologies, would consist of the company’s information management business, which makes products for data backup and recovery.
However, Symantec has now decided to sell Veritas to a group of private investors for $8.0 billion. It expects to close the deal on January 1, 2016.
...
1 min read
Pat McKeough
Growth Stocks
CAMECO CORP. $18.16 - Toronto symbol CCO
CAMECO CORP. $18.16 (Toronto symbol CCO; TSINetwork Rating: Extra Risk) (306-956-6200; www.cameco.com; Shares outstanding: 395.8 million; Market cap: $7.3 billion; Dividend yield 2.2%) has rebounded 10.8% after falling to $16.73 on July 17, 2015. That’s partly because Japan’s Kyushu Electric Power Company has restarted one of its nuclear reactors. This is the first nuclear station to restart since the country’s government shut them all down after the March 2011 earthquake and tsunami damaged the Fukushima plant, allowing radiation to escape. Kyushu plans to restart a second reactor in October.
Japan’s return to nuclear power likely won’t spur uranium prices, at least in the short term. That’s because the country’s power companies will have to use up their large inventories before buying more.
However, uranium’s long-term outlook is bright, particularly as China and India plan to build 93 new reactors by 2040.
...
1 min read
Pat McKeough
Growth Stocks
TEMPUR SEALY $78.04 - New York symbol TPX
TEMPUR SEALY $78.04 (New York symbol TPX; TSINetwork Rating: Speculative) (800-878-8889; www.tempursealy.com; Shares outstanding: 61.9 million; Market cap: $4.8 billion; No dividends paid) has been forced to make changes to its management and board of directors after activist investor H Partners Management, which holds 10% of Tempur Sealy’s shares, won the support of enough investors at the company’s May 8, 2015, annual meeting.
H Partners believes Tempur Sealy has performed poorly compared to other mattress makers since it acquired rival Sealy in March 2013.
After the meeting, chief executive officer Marc Sarvaray, chairman P. Andrews McLane and board director Christopher Mastro resigned. H Partners executive Usman Nabi took Mastro’s spot on the board. Timothy Yaggi, Tempur Sealy’s current chief operating officer, became interim CEO as a search committee made up of Nabi and three independent directors looks for a replacement for Sarvaray. Board member Frank Doyle became chairman.
...
1 min read
Pat McKeough
Growth Stocks
AIMIA INC. $12.27 - Toronto symbol AIM
AIMIA INC. $12.27 (Toronto symbol AIM; TSINetwork Rating: Extra Risk) (514-897-6800; www.aimia.com; Shares outstanding: 160.8 million; Market cap: $2.0 billion; Dividend yield: 6.2%) has announced that its members can now earn and redeem points for travel on Brazilian airline Avianca. This brings Aeroplan’s total number of airline partners to 34.
Avianca offers 200 daily flights to 23 cities throughout Brazil, operating from its main hub at São Paulo-Guarulhos International Airport.
Aimia is a buy.
...
1 min read
Pat McKeough
Growth Stocks
AGT FOOD & INGREDIENTS $29.79 - Toronto symbol AGT
AGT FOOD & INGREDIENTS $29.79
(Toronto symbol AGT; TSINetwork Rating: Extra Risk)
(306-525-4490;
www.alliancegrain.com
; Shares outstanding: 23.1 million; Market cap: $684.0 million; Dividend yield: 2.0%)
earned $0.44 a share in the three months ended June 30, 2015, up 2.3% from $0.43 a year earlier.
Revenue gained 5.1%, to $378.2 million from $359.8 million. The gains came from recent acquisitions and higher processing activity.
AGT continues to benefit from its plan to focus on more-profitable products, such as ingredients and packaged foods, as opposed to simply cleaning, splitting and bagging bulk crops. Food makers use these ingredients in products such as baked goods, soups and beverages, as well as pet food and animal feed.
...
1 min read
Pat McKeough
Growth Stocks
CHEMTRADE LOGISTICS INCOME FUND $18.83 - Toronto symbol CHE.UN
CHEMTRADE LOGISTICS INCOME FUND $18.83
(Toronto symbol CHE.UN; TSINetwork Rating: Speculative)
(416-496-5856;
www.chemtradelogistics.com
; Units outstanding: 69.0 million; Market cap: $1.3 billion; Dividend yield: 6.3%)
is one of North America’s largest providers of removal services for resource firms, such as oil refineries and base metal processors, whose operations create sulphur, acid and other by-products. Chemtrade converts these substances into useful chemicals, like sulphuric acid.
In the three months ended June 30, 2015, Chemtrade’s revenue rose 9.3%, to $338.8 million from $310.1 million a year earlier. The gain mainly came from the higher U.S. dollar, which increased the contribution from its operations in that country.
The trust’s overall cash flow rose 5.3%, to $47.0 million from $44.6 million, but cash flow per share declined 8.1%, to $0.68 from $0.74, on more shares outstanding.
...
1 min read
Pat McKeough
Growth Stocks
INTACT FINANCIAL $92.22 - Toronto symbol IFC
INTACT FINANCIAL $92.22
(Toronto symbol IFC; TSINetwork Rating: Speculative)
(416-341-1464;
www.intactfc.com
; Shares outstanding: 131.5 million; Market cap: $12.2 billion; Dividend yield: 2.3%)
is Canada’s largest provider of property and casualty insurance. Its brands include Intact Insurance, Canada BrokerLink and belairdirect.
In the three months ended June 30, 2015, Intact’s revenue rose 6.0%, to $2.34 billion from $2.21 billion a year earlier. Revenue improved across all of the company’s insurance lines and geographic regions. Its $197-million acquisition of Canadian Direct Insurance in early 2015 also added to its sales. Canadian Direct offers home, auto and travel insurance, mainly in Alberta and B.C.
Earnings rose 1.9%, to $210 million, or $1.56 a share, from $206 million, or $1.53. Intact continues to write more-profitable insurance policies and cut its operating costs.
...
1 min read
Pat McKeough
Growth Stocks
RESTAURANT BRANDS INTERNATIONAL $42.61 - New York symbol QSR
RESTAURANT BRANDS INTERNATIONAL $42.61
(New York symbol QSR; TSINetwork Rating: Average)
(905-845-6511;
www.rbi.com
; Shares outstanding: 467.0 million; Market cap: $19.9 billion; Dividend yield: 1.1%)
is the world’s thirdlargest fast-food operator, after McDonald’s and Yum Brands, with 14,528 Burger King outlets and 4,776 Tim Hortons locations.
In the three months ended June 30, 2015, the company earned $142.7 million, up 27.3% from $112.1 million a year earlier.
Earnings per share gained 25.0%, to $0.30 from $0.24, on more shares outstanding. Overall sales fell 1.6%, to $1.04 billion from $1.06 billion. That’s because the high U.S. dollar hurt the contribution from Restaurant Brands’ overseas operations.
...
1 min read
Pat McKeough
Growth Stocks
ATLANTIC TELE-NETWORK $74.34 - Nasdaq symbol ATNI
ATLANTIC TELE-NETWORK $74.34 (Nasdaq symbol ATNI; TSINetwork Rating: Speculative) (340- 777-8000; www.atni.com; Shares outstanding: 16.0 million; Market cap: $1.2 billion; Dividend yield: 1.6%) owns wireless and wireline (traditional telephone and Internet) operations in the U.S. Southwest, New England, New York State, Guyana, Bermuda and parts of the Caribbean islands.
The company continues to expand its wireless capacity and coverage. That’s paying off as customers use more mobile data for services like music downloads, mobile gaming and e-books.
As well, earlier this year, Atlantic entered the solar energy market by acquiring 28 solar farms in Massachusetts, California and New Jersey. The company paid $103 million for these assets ($64 million in cash and the assumption of $39 million of debt).
...
1 min read
Pat McKeough
Growth Stocks
GOODYEAR TIRE & RUBBER CO. $32.22 - Nasdaq symbol GT
GOODYEAR TIRE & RUBBER CO. $32.22 (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (330-796-2122; www.goodyear.com; Shares outstanding: 269.6 million; Market cap: $8.8 billion; Dividend yield: 0.7%) is the world’s largest tire maker, with 50 plants in 22 countries.
In the three months ended June 30, 2015, Goodyear’s revenue fell 10.4%, to $4.17 billion from $4.66 billion a year earlier. The rising U.S. dollar cut the contribution from the company’s foreign sales (particularly in Europe and Brazil) by $401 million.
Excluding one-time items, earnings rose 1.8%, to $229.0 million, or $0.84 a share, well ahead of the consensus estimate of $0.74. A year earlier, the company earned $225.0 million, or $0.80 a share.
...
1 min read
Pat McKeough
Growth Stocks
CHESAPEAKE ENERGY $7.34 - New York symbol CHK
CHESAPEAKE ENERGY $7.34
(New York symbol CHK; TSINetwork Rating: Extra Risk)
(405-848-8000;
www.chk.com
; Shares outstanding: 665.1 million; Market cap: $5.2 billion; No dividends paid)
has eliminated its dividend to conserve cash in the face of low oil and gas prices. The company had been paying a quarterly dividend of $0.0875 a share. The cut will save it $240 million a year.
As well, Chesapeake will spend $3.5 billion to $4.0 billion on exploration and development in 2015, down from its earlier estimate of $4.0 billion to $5.0 billion. It spent $5.8 billion in 2014.
The stock now trades at just 1.3 times the company’s annual cash flow of $5.52 a share, based on the latest quarter.
...
1 min read
Pat McKeough
Growth Stocks
STANTEC INC. $31.87 - Toronto symbol STN
STANTEC INC. $31.87
(Toronto symbol STN; TSINetwork Rating: Extra Risk)
(780-917-7288;
www.stantec.com
; Shares outstanding: 94.0 million; Market cap: $3.1 billion; Dividend yield: 1.3%)
sells a range of consulting, project-delivery, design and technology services. Its clients operate in a variety of industries, including oil and gas, transportation and construction.
In the three months ended June 30, 2015, Stantec’s acquisitions and the stronger U.S. dollar boosted its revenue by 12.0%, to $593.9 million from $530.3 million a year ago. However, earnings fell 2.6%, to $43.2 million, or $0.46 a share, from $44.3 million, or $0.47. The decline came from fewer oil and gas projects and the cost of integrating recently purchased firms.
Meantime, Stantec continues to grow through acquisitions. One of its latest is VI Engineering, a 30- person electrical-engineering firm based in Houston. VI’s clients include MidAmerican Energy, Statoil, Public Service Electric and Gas, Valero Refining, Bayer and Enterprise Products Partners.
...
1 min read
Pat McKeough
Growth Stocks
MITEL NETWORKS $10.41 - Toronto symbol MNW
MITEL NETWORKS $10.41
(Toronto symbol MNW; TSINetwork Rating: Extra Risk)
(613-592-2122;
www.mitel.ca
; Shares outstanding: 120.0 million; Market cap: $1.2 billion; No dividends paid)
develops and markets products centred on business telephone systems, including technology that integrates land lines and mobile phones. The company also offers call centre and videoconferencing products.
In the three months ended June 30, 2015, Mitel’s revenue rose slightly, to $292.3 million from $291.7 million a year earlier (all figures except share price and market cap in U.S. dollars).
Earnings per share fell 14.3%, to $0.18 from $0.21, as the stronger dollar lowered the value of the company’s international sales. However, the latest earnings matched the consensus estimate.
...
1 min read
Pat McKeough
Growth Stocks
ACI WORLDWIDE $22.65 - Nasdaq symbol ACIW
ACI WORLDWIDE $22.65
(Nasdaq symbol ACIW; TSINetwork Rating: Speculative)
(402- 390-7600;
www.tsainc.com
; Shares outstanding: 117.8 million; Market cap: $2.7 billion; No dividends paid)
reported revenue of $265.8 million in the three months ended June 30, 2015, up 4.3% from $254.8 million a year earlier. The company earned $0.26 a share, up sharply from $0.12. Cost-cutting measures helped improve the latest quarterly results.
ACI’s growth by acquisition has increased its goodwill and intangible assets to $1.0 billion, or a high 37.0% of its market cap.
The company is well positioned to benefit from the global shift toward online payments. However, the stock trades at a high 30.2 times ACI’s forecast 2015 earnings of $0.75 a share. Any major problems integrating its acquisitions could sharply cut that estimate.
...
1 min read
Pat McKeough
Growth Stocks
FAIR ISAAC CORP. $87.87 - New York symbol FICO
FAIR ISAAC CORP. $87.87
(New York symbol FICO; TSINetwork Rating: Average)
(415-472-2211;
www.fairisaac.com
; Shares outstanding: 31.1 million; Market cap: $2.8 billion; Dividend yield: 0.1%)
makes FICO Scores, the program that dominates the market for software businesses use to evaluate customer creditworthiness. Fair Isaac also profits by selling programs that help credit card issuers control fraud and analyze cardholders’ spending patterns.
In its fiscal 2015 third quarter, which ended June 30, 2015, Fair Isaac’s revenue rose 5.9%, to $209.3 million from $197.6 million a year earlier. Sales at its applications division (61% of the total) fell 2.1% on weaker demand for marketing and fraud-detection software. However, sales of credit-scoring programs (27%) jumped 23.0%, while sales of analytics software (12%) gained 18.1%.
The company earned $32.3 million, up 10.3% from $29.2 million. Earnings per share jumped 20.5%, to $1.00 from $0.83, on fewer shares outstanding. Fair Isaac spends around 12% of its revenue on research, which lets it produce innovative products that keep it ahead of the competition.
...
1 min read
Pat McKeough
Growth Stocks
BROADRIDGE FINANCIAL SOLUTIONS $55.76 - New York symbol BR
BROADRIDGE FINANCIAL SOLUTIONS $55.76
(New York symbol BR; TSINetwork Rating: Average)
(201-714-3000;
www.broadridge.com
; Shares outstanding: 119.9 million; Market cap: $6.7 billion; Dividend yield: 2.2%)
serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. The company processes 90% of all proxy votes in the U.S. and Canada.
Without one-time items, Broadridge earned $171.5 million in its fiscal 2015 fourth quarter, which ended June 30, 2015. That’s up 18.6% from $144.6 million a year earlier. Earnings per share rose 20.7%, to $1.40 from $1.16, on fewer shares outstanding.
Revenue gained 4.9%, to $929.6 million from $885.9 million. The company continues to add new clients and is doing a good job of holding on to existing ones. Recurring fee revenue rose 7% in the latest quarter and accounted for 65% of the total.
...
1 min read
Pat McKeough
Growth Stocks
DOREL INDUSTRIES $34.73 - Toronto symbol DII.B
DOREL INDUSTRIES $34.73
(Toronto symbol DII.B; TSINetwork Rating: Extra Risk)
(514-934- 3034;
www.dorel.com
; Shares outstanding: 32.3 million; Market cap: $1.2 billion; Dividend yield: 4.6%)
makes a number of items, including readyto- assemble home and office furniture; juvenile products, such as car seats, strollers, high chairs, toddler beds and cribs; and sporting goods, mainly bicycles.
In the three months ended June 30, 2015, Dorel’s sales rose 2.1%, to $669.6 million from $655.8 million a year earlier (all amounts except share price and market cap in U.S. dollars).
Even with the higher sales, earnings fell 16.2%, to $16.6 million, or $0.51 share, from $19.8 million, or $0.61 a share. The high U.S. dollar cut $0.23 a share from the company’s international earnings.
...
1 min read
Pat McKeough
Growth Stocks
WESTJET AIRLINES $24.67 - Toronto symbol WJA
WESTJET AIRLINES $24.67
(Toronto symbol WJA; TSINetwork Rating: Extra Risk)
(1-877-493-7853;
www.westjet.com
; Shares outstanding: 125.8 million; Market cap: $3.1 billion; Dividend yield: 2.3%)
serves 93 destinations in North America, Central America, the Caribbean and Europe. Its fleet of 107 modern Boeing 737s are 30% more fuel efficient than older jets.
In June 2013, the company launched WestJet Encore, its Canadian regional airline. This business now operates 22 Bombardier Q400 NextGen turboprop planes, which seat 78 passengers.
The Canadian airline market remains highly competitive, especially with Air Canada expanding its Rouge budget airline to serve more leisure destinations in Europe, the Caribbean, Mexico and the U.S. However, WestJet is now taking delivery of its Boeing 767 widebody aircraft. That will let it compete with Air Canada internationally; it could add more cities in Europe, as well as South America or Asia.
...
1 min read
Pat McKeough
ETFs
A Greek recovery and the world’s top tech stocks—a tale of two ETFs
Two questions—on Greek recovery and a tech ETF—bring our response on the risks and rewards of profiting from market trends through ETFs.
2 min read
Pat McKeough
Dividend Stocks
CF Industries grows in natural gas fertilizers, but a Canadian rival gets our buy
Aggressive growth has given CF Industries a strong position in natural gas fertilizers, but in this field our buy goes to a Canadian rival.
3 min read
Pat McKeough
Growth Stocks
Growth stocks: Saputo ripe to rise under new trade partnership
At first, the Trans-Pacific trade pact could hinder dairy producer Saputo, a top growth stock for us. But we like its long-term prospects.
3 min read
Jim Bates
Value Stocks
Value stocks: Wajax and McCoy sustain high yields in the face of low commodity prices
In a tough environment, our advice on resource service firms Wajax and McCoy: both are high-yielding value stocks with better days ahead.
3 min read
Scott Clayton
Blue Chip Stocks
Blue chip stocks: $27 billion investment in networks paying off for Telus
Pumping $27 billion into network upgrades helps keep Telus competitive in the telecom race we see it as a clear buy among blue chip stocks.
4 min read
Pat McKeough
Growth Stocks
Growth stocks: Toyota and Honda count on low yen to counter airbag troubles
Today, a look at how good companies deal with adverse circumstances. Two dominant Japanese carmakers, Toyota and Honda, have had to deal with massive recalls and repairs from faulty airbag inflators. But both continue to benefit from strong international sales and a lower Japanese yen.
Faulty airbag inflators made by Takata Corp. have forced Toyota to recall 8.1 million vehicles since 2008, while Honda has had to fix 20 million cars....
2 min read
Pat McKeough
ETFs
3 ETFs help you make the most of U.S. stocks with the least worry
Our advice is keep it simple when you invest in ETFs. Three “plain vanilla” ETFs give you an efficient way of investing in U.S. stocks.
3 min read
Scott Clayton
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