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DirectCash Payments Inc., a leading ATM operator in Canada, Australia and the U.K. this Canadian firm keeps on expanding through a series of small takeovers

Dun & Bradstreet’s has kept its credit report business thriving with its ability to harness new technologies like cloud computing.

Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a beginning or experienced investor, these weekly updates are designed to give you specific investment tips and stock market advice. Each Investor Toolkit update gives you a fundamental piece of investment advice, and shows you how you can put it into practice right away.

Today’s tip: “When you need to sell stocks, take the opportunity to improve your portfolio by making a careful inventory of what investments will do more harm than good over time.”

When you need to sell, here’s one key factor to consider: how soon do you need to take your money out of the market?

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SONY CORP. ADRs $27 (www.sony.com) has started selling its new PlayStation 4 video-game console in China. The company has sold 20.2 million units since it launched the new version in November 2013. However, Chinese gamers tend to prefer playing on personal computers or mobile devices, so it is unclear if they will buy the PlayStation....

SHERWIN-WILLIAMS CO. $281 (www.sherwin-williams.com) earned $9.31 a share in 2014, up 24.6% from $7.47 in 2013. Sales rose 9.3%, to $11.1 billion from $10.2 billion. These gains are partly due to Mexican paint maker Comex’s U.S. and Canadian operations (including 314 stores), which Sherwin bought for $165 million in September 2013....

QUAKER CHEMICAL CORP. $83 (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 13.3 million; Market cap: $1.1 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.4%; TSINetwork Rating: Average; www.quakerchem.com) began operating in 1918 and currently operates 34 plants in 21 countries. These facilities make lubricants and chemicals that keep mechanical parts from rusting.

This small-cap stock is riskier than many of our other recommendations, but Quaker has a long history of increasing its earnings— and dividends.

The company’s revenue rose 40.8%, from $544.1 million in 2010 to $765.9 million in 2014. That’s partly because it bought smaller firms that expanded its product lines and geographic reach.

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KRAFT FOODS GROUP INC. $83 (Nasdaq symbol KRFT; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 588.0 million; Market cap: $48.8 billion; Price-to-sales ratio: 2.0; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.kraftfoodsgroup.com) is merging with H.J. Heinz.

The new firm— The Kraft Heinz Company— will be the 5th largest food company in the world, with annual revenue of $28 billion.

Under the terms of the deal, Kraft shareholders will receive one share of the new firm for each share they currently hold. They will also receive a special dividend of $16.50 a share.

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IDEXX LABORATORIES INC. $150 (Nasdaq symbol IDXX; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 47.1 million; Market cap: $7.1 billion; Price-to-sales ratio: 4.8; No dividends paid; TSINetwork Rating: Average; www.idexx.com) earned $3.99 a share in 2014, up 14.7% from $3.48 in 2013. Sales rose 7.9%, to $1.5 billion from $1.4 billion.

These gains are mainly because veterinarians are buying more of Idexx’s equipment for detecting diseases in pets. That’s also spurring more demand for products vets must continuously replenish.

The company now sells its products in the U.S. directs to veterinarians instead of through distributors. That hurts its short-term growth, but should expand its future profit margins. However, the stock is expensive at 34.2 times the $4.38 a share that Idexx will probably earn in 2015.

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HEWLETT-PACKARD CO. $32 (New York symbol HPQ; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.8 billion; Market cap: $57.6 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.2%; TSINetwork Rating: Average; www.hp.com) is buying Aruba Networks (Nasdaq symbol ARUN), a maker of hardware and software that help businesses make their high-speed wireless networks faster and more secure.

Hewlett will pay $3.0 billion when it completes the purchase later this year. If you include the cash Aruba holds, the purchase price falls to $2.7 billion.

Hewlett-Packard is a hold.

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ALCOA INC. $13 (New York symbol AA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.2 billion; Market cap: $15.6 billion; Price-to-sales ratio: 0.7; Dividend yield: 0.9%; TSINetwork Rating: Average; www.alcoa.com) has agreed to buy RTI International Metals (New York symbol RTI), which makes titanium components for airplanes, armoured vehicles, oil and gas machinery and other industrial products.

RTI’s investors will exchange their holdings for Alcoa common shares. If you include RTI’s cash balances and debt, the deal is worth $1.5 billion. Alcoa expects to close it in the next six months.

Alcoa is a buy.

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AMERICAN EXPRESS CO. $80 (New York symbol AXP, Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.0 billion; Market cap: $80.0 billion; Price-to-sales ratio: 2.6; Dividend yield: 1.5%; TSINetwork Rating: Average; www.americanexpress.com) has raised its quarterly dividend by 11.5%, to $0.29 a share from $0.26. The new annual rate of $1.16 yields 1.5%.

Amex also plans to repurchase up to $6.6 billion worth of its stock by June 30, 2016, up 50.0% from $4.4 billion in 2014.

The company’s 2015 earnings will probably fall to $5.49 a share from $5.56 in 2014. However, Amex’s current restructuring plan, which includes a 6% cut to its workforce, could push its earnings up to $6.00 a share in 2016. The stock trades at 13.3 times that estimate.

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J.P. MORGAN CHASE & CO. $60 (New York symbol JPM; Income Portfolio, Finance sector; Shares outstanding: 3.7 billion; Market cap: $222.0 billion; Price-to-sales ratio: 2.5; Dividend yield: 2.9%; TSINetwork Rating: Average; www.jpmorganchase.com) will pay a quarterly dividend of $0.44 a share starting with the July 2015 payment, up 10.0% from $0.40. The new annual rate of $1.76 yields 2.9%.

Morgan also plans to buy back up to $6.4 billion worth of its shares by June 30, 2016, compared to the $4.8 billion it spent on repurchases in 2014.

The bank will probably earn $5.79 a share in 2015, up 9.5% from $5.29 in 2014. The stock trades at 10.4 times that estimate.

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WELLS FARGO & CO. $55 (New York symbol WFC; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 5.2 billion; Market cap: $286.0 billion; Price-to-sales ratio: 3.4; Dividend yield: 2.7%; TSINetwork Rating: Average; www.wellsfargo.com) will raise its quarterly dividend by 7.1%, to $0.375 a share from $0.35. The new annual rate of $1.50 yields 2.7%.

As well, the bank will likely earmark more funds for share buybacks in 2015 than the $9.4 billion it spent last year. That will help push up this year’s projected earnings to $4.16 a share from $4.10 in 2014. The stock trades at 13.2 times that forecast.

Wells Fargo is a buy.

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MCKESSON CORP. $226 (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 232.8 million; Market cap: $52.6 billion; Price-to-sales ratio: 0.3; Dividend yield: 0.4%; TSINetwork Rating: Above Average; www. mckesson.com) is the largest wholesale drug distributor in the U.S. and Canada. It also sells surgical tools and health and beauty products.

In addition, the company makes computers and software that help clinics and pharmacies manage their drug inventories. The technology solutions division accounts for just 2% of McKesson’s revenue but supplies 12% of its earnings.

In February 2014, McKesson acquired 77.6% of Celesio AG, a German firm that distributes prescription drugs in Europe and Brazil. If you include McKesson’s share of Celesio’s cash, it paid $4.5 billion for this stake. Celesio has issued more shares since then, reducing McKesson’s interest to 75.9%.

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TERADATA CORP. $43 (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 147.9 million; Market cap: $6.4 billion; Price-to-sales ratio: 2.3; No dividends paid; TSINetwork Rating: Average; www.teradata .com) makes computers and software that capture and store large amounts of a business’s data. It then analyzes this information and identifies buying habits and other trends.

In 2014, Teradata’s earnings fell 1.5%, to $452 million from $459 million in 2013. But per-share earnings rose 3.6%, to $2.86 from $2.76, on fewer shares outstanding. Revenue gained 1.5%, to $2.73 billion from $2.69 billion.

Strong competition from bigger firms, like IBM and Oracle, will likely cut Teradata’s 2015 earnings to $2.60 a share. The stock trades at a somewhat high 16.5 times that forecast.

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MTS SYSTEMS CORP. $75 (Nasdaq symbol MTSC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 15.0 million; Market cap: $1.1 billion; Price-to-sales ratio: 2.0; Dividend yield: 1.6%; TSINetwork Rating: Average; www.mts.com) makes equipment and software that manufacturers use to test the behaviour of materials, machines and structures.

In its fiscal 2015 first quarter, which ended December 27, 2014, MTS’s revenue rose 3.0%, to $142.6 million from $138.4 million a year earlier. Overall earnings improved 14.5%, to $13.8 million from $12.0 million. Earnings per share gained 16.7%, to $0.91 from $0.78, on fewer shares outstanding. MTS spends 4% of its revenue on research.

The higher earnings are partly due to a recent restructuring plan that should cut MTS’s annual costs by $6 million.

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KEYSIGHT TECHNOLOGIES INC. $37 (New York symbol KEYS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 168.0 million; Market cap: $6.2 billion; Price-to-sales ratio: 2.2; No dividends paid; TSINetwork Rating: Average; www.keysight.com) makes gear for testing electronics.

The company sells its products to industrial clients, including computer chipmakers (43% of total revenue), communications equipment suppliers (34%) and aerospace and defence firms (23%).

In its fiscal 2015 first quarter, which ended January 31, 2015, Keysight’s revenue gained 4.5%, to $701 million from $671 million a year earlier. Without the negative impact of exchange rates, revenue rose 7%.

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AGILENT TECHNOLOGIES INC. $41 (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 336.0 million; Market cap: $13.8 billion; Price-to-sales ratio: 2.0; Dividend yield: 1.0%; TSINetwork Rating: Average; www.agilent.com) has completed its plan to split into two publicly traded companies.

One firm kept the Agilent name and stock symbol and focuses on testing equipment for medical research labs. It gets 70% of its revenue from overseas.

The second company, called Keysight Technologies (see right), makes testing systems for electronics.

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ABB LTD. ADRs $21 (New York symbol ABB; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 2.3 billion; Market cap: $48.3 billion; Price-to-sales ratio: 1.2; Dividend yield: 3.7%; TSINetwork Rating: Above Average; www.abb.com) makes transformers, transmission systems and circuit breakers for electrical utilities. The Switzerland-based firm also produces automation systems and robotics that industrial clients use to improve their productivity.

As part of a new plan to focus on its main operations, ABB sold several small businesses for a total of $1.1 billion in 2014. As well, the company is focusing on power projects with strong potential and turning down risky, less profitable orders. At the same time, a restructuring plan, including plant closures and job cuts, saved the company a further $1.1 billion in 2014.

Partly due to asset sales, ABB’s revenue fell 4.8% in 2014, to $39.8 billion from $41.8 billion in 2013. However, orders for new equipment rose 6.7%, to $41.5 billion from $38.9 billion.

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GENERAL ELECTRIC CO. $25 (New York symbol GE; Conservative Growth and Income Portfolios, Manufacturing & Industry sector; Shares outstanding: 10.1 billion; Market cap: $252.5 billion; Price-to-sales ratio: 1.7; Dividend yield: 3.7%; TSINetwork Rating: Above Average; www.ge.com) makes machinery for power generation and distribution (such as turbines) and other products, like jet engines, medical equipment, appliances, lighting and locomotives.

The company continues to shrink GE Capital, which mainly provides loans to GE’s clients. In 2014, this business supplied 42% of the company’s operating earnings, but it aims to cut that to 25% by 2016.

As part of this plan, GE recently agreed to sell GE Capital’s consumer-lending operations in Australia and New Zealand for $6.3 billion. The proceeds will help cover the cost of the company’s recent alliance with France’s Alstom SA, a leading maker of parts for power plants and transmission gear.

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FEDEX CORP. $165 (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 283.8 million; Market cap: $46.8 billion; Price-to-sales ratio: 1.0; Dividend yield: 0.5%; TSINetwork Rating: Average; www.fedex.com) began offering air-delivery services in 1973, under the Federal Express banner. It’s now one the world’s largest shipping firms.

The company has four divisions:

FedEx Express (59% of 2014 revenue, 34% of earnings) offers air-delivery services to over 220 countries. This business has 650 aircraft and 55,000 ground vehicles.

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Every Tuesday we bring you “Best Canadian Stocks.” You get our specific recommendations on the stocks we profile, with a full explanation of how we arrived at our opinion. You’ll read about stocks making moves you should know about, from coverage in one of our three newsletters featuring Canadian stocks—The Successful Investor, Stock Pickers Digest and Canadian Wealth Advisor.

We continue to recommend that investors aim to own two or more of Canada’s big five banks. But we also feel that conservative investors should further diversify their Finance-sector holdings with stocks like Great-West Lifeco.

GREAT-WEST LIFECO (Toronto symbol GWO; www.greatwestlifeco.com) has reported strong results in its latest quarter and raised its dividend.

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Every Monday we feature “A Stock to Sell” as our daily post. With every stock or investment we recommend as a sell, we give you a full explanation of why we advise against investing in it at this time. In today’s article we have two sells, both from an industry which has a great deal of promise for the future, but hurdles to overcome in the present.

3D Systems Corp. (symbol DDD on New York; www.3dsystems.com), makes and services 3-D printers and provides print materials.

The company’s sales rose 23.0% in the three months ended September 30, 2014, to $166.9 million from $135.7 million a year earlier, though its earnings per share fell 30.7%, to $0.18 from $0.26, on higher research and marketing spending.

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Pat McKeough responds to many requests from members of his Inner Circle for specific stock market advice as well as questions on investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week, we offer you one of the highlights from these Q&A sessions. We give you Pat’s buy-hold-sell recommendation as well as his analysis of the stock. This is part of the specific buy, hold and sell advice we offer you in our daily posts. Every week you get “A Stock to Sell” on Monday, “Best Canadian Stocks” on Tuesday, and “U.S. Stock Picks” on Thursday.

Recently we had a question from an Inner Circle member about one of Canada’s bigger Real Estate Investment Trusts. Canadian Apartment Properties REIT—also known as CAP REIT—focuses primarily on rental properties like apartment buildings and townhouses but also on land-lease properties, largely in trailer parks. Almost 80% of the company’s revenue comes from Ontario and Quebec. Pat examines the company’s latest financial results and looks at its prospects at a time when low interest rates favour home and condominium buying over renting.

Q: Pat: What is your recommendation on Canadian Apartment Properties REIT? Thanks.

A: Canadian Apartment Properties REIT (symbol CAR.UN on Toronto; www.capreit.net) is a real estate investment trust that owns multi-unit residential properties, including apartment buildings and townhouses.

In all, the trust owns 41,958 units, including 35,674 residential suites and 30 manufactured-home communities, or trailer parks, with a total of 6,284 land-lease sites. Its occupancy rate is 97.9%.

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Every Thursday we bring you one of our best U.S. stock picks. You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You will read about stocks making moves you should know about, most often from coverage in our newsletter on U.S. investing, Wall Street Stock Forecaster.

AT&T INC. (New York symbol T; www.att.com) is the largest wireless provider in the U.S., with 120.6 million subscribers. Wireless accounts for 55% of AT&T’s revenue and 75% of its earnings.

The remaining 45% of revenue and 25% of earnings comes from its wireline division, which sells phone services, television packages and high-speed Internet access to 34.4 million customers.

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