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CANADIAN NATIONAL RAILWAY CO. $78 (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 809.3 million; Market cap: $63.1 billion; Price-to-sales ratio: 5.5; Dividend yield: 1.3%; TSINetwork Rating: Above Average; www.cn.ca) has several key advantages that put it in a strong position to profit from an improving North American economy.

For example, it’s the only railway that accesses all three coasts: Atlantic, Pacific and the Gulf of Mexico. As well, CN owns an exclusive line that lets it avoid major bottlenecks in the Chicago area.

To top it off, lower fuel costs will enhance CN’s industry-leading efficiency rates. Crude-by-rail and fracking sand volumes should also remain steady, even with recent oil price drop.

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CANADIAN PACIFIC RAILWAY LTD. $211 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 170.1 million; Market cap: $35.9 billion; Price-to-sales ratio: 5.6; Dividend yield: 0.7%; TSINetwork Rating: Above Average; www.cpr.ca) has soared 205.8% since we named it our top pick in 2012. The gain is largely due to CP’s plan to cut costs and improve its efficiency with new locomotives, better tracks, and software that optimizes train loads and speeds. CP Rail is a buy.

TECK RESOURCES LTD. $14 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 566.8 million; Market cap: $7.9 billion; Price-to-sales ratio: 1.0; Dividend yield: 6.4%; TSINetwork Rating: Average; www.teck.com) is down 62.2% since we made it our #1 pick for 2013.

That’s mainly because slowing industrial activity, mainly in Asia, has hurt demand for Teck’s metallurgical coal, a key ingredient in steelmaking. Lower oil prices have also dampened the outlook for its 20.0%-owned Fort Hills oil sands project in Alberta, which is scheduled to start up in late 2017.

The company has a long history of controlling its costs, which should help it stay profitable until coal and oil prices improve. It has also pledged to maintain its annual $0.90-a-share dividend, which yields 6.4%.

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CAE INC. $15 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 265.3 million; Market cap: $4.0 billion; Price-to-sales ratio: 1.8; Dividend yield: 1.9%; TSINetwork Rating: Average; www.cae.com) is the world’s leading maker of flight simulators, which help teach airline and military pilots how to take off, land and handle a variety of emergency situations.

Since it started up in 1947, CAE has sold over 1,500 simulators to 140 airlines. It currently controls 70% of the global flight simulator market.

To cut its reliance on simulator sales, which tend to rise and fall with the overall economy, CAE began instructing pilots in 2001. It now operates around 50 pilot-training centres in over 25 countries. These facilities also train cabin crews and maintenance personnel.

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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.

A recent question on “robotics stocks for aggressive investing” from a member of our Inner Circle led to this examination of three different companies involved in this growing field. One is a sell, one is a hold and one is a buy.

ReWalk Robotics (symbol RWLK on Nasdaq; www.rewalk.com) is an Israeli company that makes robotic exoskeletons for helping people with spinal cord injuries walk again. The FDA cleared this technology for use in the U.S. in June 2014. It has been marketed in Europe since 2012.

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Pat McKeough responds to many requests from members of his Inner Circle for specific advice on stock picks 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. While we reserve our buy-hold-sell advice for Inner Circle members, these excerpts provide a great deal of information and analysis on stocks we’ve covered for members of Pat’s Inner Circle.

This week an Inner Circle member asked us about FLYHT Aerospace Solutions. This Canadian company supplies a number of products and services. But the two that have attracted the most attention in the past year are devices that collect and stream flight data. The mysterious disappearance of Malaysia Airlines Flight MH370 in March 2014—and the recent crash of AirAsia flight QZ850—underlined the potential value of those devices. Pat looks into the company’s business and assesses its prospects for growth in a highly competitive market.

Q: Pat: I would appreciate having your thoughts on the following company: FLYHT Aerospace Solutions. Thank you.

A: FLYHT Aerospace Solutions (symbol FLY on Toronto; www.flyht.com) supplies a number of products and services to the aviation industry. The company changed its name from AeroMechanical Services in 2012.

The company’s products include the AFIRS UpTime data-collection device, which records flight information as it happens and relays it to the aircraft operator’s facilities by satellite. FLYHT also sells an emergency device called FLYHTStream that sends real-time data to the ground for immediate analysis. As well, it recently introduced the Dragon, a lightweight, portable satellite communication device that lets users access FLYHT’s technology with an iPad.

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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.

Newell uses oil to make its products, so it stands to gain from the almost 60% drop in crude prices since June 2014. And even when oil rebounds, it will continue to benefit from recent acquisitions and its high market share.

NEWELL RUBBERMAID INC. (New York symbol NWL; www.newellrubbermaid.com) makes plastic storage bins, tools, window blinds, pens and many other household goods.

The company makes most of its products from oil-based resins, so it stands to gain from the recent drop in oil prices.

Newell continues to streamline its manufacturing and distribution operations, which should cut $270 million from its annual costs by mid-2015. The company now feels it can save an additional $200 million a year by the end of 2017.

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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 advice. Each Investor Toolkit update gives you a fundamental piece of investing strategy, and shows you how you can put it into practice right away.

Today’s tip: “Your investments gain doubly in your RRSP, but if you lose you take a double loss, so don’t use it as a place to find out if you have a talent for stock trading.”

Registered Retirement Savings Plans or RRSPs are a little like other investment accounts, except for their tax treatment. You can put up to 18% of the previous year’s earned income, maximum $24,930 for 2015, into an RRSP, and deduct it from your taxable income. (The limit is lower for pension plan members.) You only pay taxes on your RRSP investment, and the investment income it earns, when you make withdrawals from your RRSP.

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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.

VERESEN (Toronto symbol VSN; www.vereseninc.com) owns pipelines, power plants and gas-processing facilities across North America.

A major holding is 50% of the Alliance gas line, which runs 3,000 kilometres between Chicago and Fort St. John, B.C.

Veresen also owns the Alberta Ethane Gathering System, 42.7% of the Aux Sable NGL plant, and the Hythe/Steeprock natural gas gathering and processing complex in the Cutbank Ridge region of Alberta and B.C.

In the quarter ended September 30, 2014, Veresen’s cash flow per share rose 4.5%, to $0.23 from $0.22.

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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.

Currency Exchange International Corp. (symbol CXI on Toronto; www.ceifx.com), exchanges currency and offers other financial products and services in North America.

The company first sold shares to the public at $6.65 each and began trading on Toronto in March 2012.

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MACY’S INC. $65 (www.macysinc.com) is changing some procedures at its Macy’s and Bloomingdale’s department stores. Previously, the physical stores and online operations bought and marketed their merchandise separately. Now the company is creating a unified purchasing organization that will cut costs, minimize product shortages and speed up online order fulfillment....

STATE STREET CORP. $71 (www.statestreet.com) sells accounting and administrative services to large institutional investors, such as mutual funds and pension plans. The company’s fee income rises and falls with the value of the securities it manages....

CINTAS CORP. $78 (Nasdaq symbol CTAS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 117.3 million; Market cap: $9.1 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.1%; TSINetwork Rating: Average; www.cintas.com) provides a range of products and services to over one million businesses, mainly in North America.

The company gets 71% of its revenue by renting uniforms that it makes and cleans. This business also rents a variety of related products, such as mats, towels, mops and cleaning supplies. Cintas gets a further 10% of its revenue by selling uniforms.

In addition, the company sells first aid kits, fire extinguishers, sprinklers and emergency-exit lights (11%). It also shreds corporate documents (8%). In April 2014, it merged its shredding operations with Shred-it International. In exchange, Cintas received 42% of the combined company, which uses the Shred-it brand, plus $180 million in cash.

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AMERICAN EXPRESS $82 (New York symbol AXP, Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.0 billion; Market cap: $82.0 billion; Price-to-sales ratio: 2.6; Dividend yield: 1.3%; TSINetwork Rating: Average; www.americanexpress.com) earned $1.4 billion in the three months ended December 31, 2014, up 10.6% from $1.3 billion a year earlier. Per-share earnings rose 14.9%, to $1.39 from $1.21, on fewer shares outstanding. Revenue gained 6.6%, to $9.1 billion from $8.5 billion, as cardholder spending rose 6% and credit card balances grew by 7%.

The company is now cutting 6% of its workforce as part of a plan to improve its overall efficiency. Severance costs cut its earnings by $206 million in the latest quarter. However, the savings will help Amex invest in new growth initiatives, including adapting its networks to process purchases made from smartphones.

American Express is a buy.

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FAIR ISAAC CORP. $79 (New York symbol FICO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 31.7 million; Market cap: $2.5 billion; Price-to-sales ratio: 3.5; Dividend yield: 0.1%; TSINetwork Rating: Average; www.fico.com) has paid an undisclosed amount for Tonbeller, a German firm whose software helps banks and insurance companies detect and prevent money laundering and fraud.

The company plans to integrate Tonbeller’s antifraud products with its own software, which can quickly analyze a large number of transactions. That should give Fair Isaac an advantage, as users usually have to buy these programs separately.

Fair Isaac is a hold.

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CHEVRON CORP. $104 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.9 billion; Market cap: $197.6 billion; Price-to-sales ratio: 0.9; Dividend yield: 4.1%; TSINetwork Rating: Above Average; www.chevron .com) has signed a five-year deal to supply liquefied natural gas (LNG) from its 47.3%-owned Gorgon project in Australia to South Korea’s SK Group. Gorgon should start up later this year.

With this deal, Chevron now has contracts covering 75% of Gorgon’s LNG production from 2017 to 2022. That helps cut this project’s risk .

Chevron is a buy.

L BRANDS INC. $85 (New York symbol LB; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 292.7 million; Market cap: $24.9 billion; Price-to-sales ratio: 2.8; Dividend yield: 1.6%; TSINetwork Rating: Average; www.lb.com) has opened its first Victoria’s Secret store in China. The company plans to open five more outlets in that country in the next few weeks.

China restricts clothing imports, so unlike Victoria’s Secret stores in other countries, which mainly sell lingerie, these locations will focus on handbags, cosmetics and fragrances.

L Brands is a hold.

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FORD MOTOR CO. $14 (New York symbol F; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 3.8 billion; Market cap: $53.2 billion; Price-to-sales ratio: 0.4; Dividend yield: 4.3%; TSINetwork Rating: Extra Risk; www.ford.com) sold 2.5 million vehicles in the U.S. in 2014, down 0.5% from 2013.

Truck sales (38% of the 2014 total) fell 0.7% as Ford slowed production of its popular F-150 as it prepared to launch a new version that uses lightweight aluminum body panels. Car sales (32%) declined 3.8%, but SUV sales (30%) gained 3.5%.

The company also raised its dividend by 20.0%. The new annual rate of $0.60 a share yields 4.3%.

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NEWMONT MINING CORP. $24 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 498.8 million; Market cap: $11.9 billion; Price-to-sales ratio: 1.7; Dividend yield: 0.4%; TSINetwork Rating: Average; www.newmont.com) has started work on its 75%-owned Merian gold project in Suriname; the Suriname government owns the remaining 25%.

The company will spend $600 million to $700 million on Merian. The new mine will supply 7% to 10% of Newmont’s total gold production when it starts up in 2017.

The stock has jumped 36% from its December 2014 low of $17.60. That’s mainly because gold prices have strengthened in response to fears of deflation in Europe. However, the higher U.S. dollar will continue to weigh on gold.

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ALLIANT ENERGY CORP. $69 (New York symbol LNT; Income Portfolio, Utilities sector; Shares outstanding: 110.9 million; Market cap: $7.7 billion; Price-to-sales ratio: 2.3; Dividend yield: 3.2%; TSINetwork Rating: Average; www.alliantenergy.com) sells electricity and natural gas to 1.4 million customers in Wisconsin, Iowa and Minnesota.

The company has earmarked $5.2 billion for plant upgrades and replacing older transmission lines and pipelines between 2014 and 2018. These funds include $750 million for a gas-fired plant that should replace some of its older coal facilities (coal accounts for about half of Alliant’s electricity production).

Partly due to these extra costs, Alliant’s earnings fell 2.3%, to $155.2 million, or $1.40 a share, in the third quarter of 2014. A year earlier, it earned $158.9 million, or $1.43. Cooler-than-normal weather also cut its earnings by $0.06 a share in the latest quarter. Revenue fell 2.7%, to $843.1 million from $866.6 million.

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AMEREN CORP. $46 (New York symbol AEE; Income Portfolio, Utilities sector; Shares outstanding: 242.6 million; Market cap: $11.2 billion; Price-to-sales ratio: 1.9; Dividend yield: 3.6%; TSINetwork Rating: Average; www.ameren.com) provides power and natural gas to 3.3 million customers in Illinois and Missouri.

A cool summer meant customers used less power for air conditioning in the quarter ended September 30, 2014. That cut Ameren’s earnings by 3.6%, to $294 million, or $1.20 a share. A year earlier, it earned $305 million, or $1.25. However, higher power rates increased revenue by 2.0%, to $1.7 billion from $1.6 billion.

Ameren generates 70% of its power by burning coal, so it’s vulnerable to tougher environmental regulations. As a result, the company expects to spend a total of $8.3 billion to modernize its operations between 2014 and 2018.

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WAL-MART STORES INC. $87 (New York symbol WMT; Conservative Growth Portfolio: Consumer sector; Shares outstanding: 3.2 billion; Market cap: $278.4 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.walmart .com) plans to open 11 new supercentres, which sell groceries as well as merchandise, in Canada. That will give the company 394 Canadian stores, including 280 supercentres.

Rival retailer Target recently announced that it would close all 133 of its Canadian outlets, and many people who shopped at these stores will likely switch to Wal-Mart. In addition, the company will probably pick up some of Target’s locations at a discount.

Wal-Mart is a buy.

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MICROSOFT CORP. $41 (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 8.2 billion; Market cap: $336.2 billion; Price-to-sales ratio: 3.8; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www. microsoft.com) plans to release Windows 10, the latest version of its popular operating system, later this year.

Unlike previous editions, Microsoft will let users of older versions update for free. Sales to computer makers provide most of the revenue Microsoft gets from Windows, so giving it away to existing users will have little impact on its earnings. This will also help prevent users from switching to competing operating systems.

Microsoft aims to make up the lost sales by selling related services, such as online versions of its Office business programs.

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TEXAS INSTRUMENTS INC. $54 (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.05 billion; Market cap: $56.7 billion; Priceto- sales ratio: 4.7; Dividend yield: 2.5%; TSINetwork Rating: Average; www.ti.com) specializes in analog chips, which convert inputs like touch, sound and pressure into electronic signals computers can understand.

Manufacturers use these chips in a variety of products, including cars, cameras, medical devices and appliances.

The company’s earnings jumped 30.5% in 2014, to $2.8 billion from $2.2 billion in 2013. Texas Instruments spent $2.8 billion on share buybacks during the year. As a result, earnings per share gained 34.6%, to $2.57 from $1.91.

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CISCO SYSTEMS INC. $27 (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.1 billion; Market cap: $137.7 billion; Price-to-sales ratio: 3.0; Dividend yield 2.8%; TSINetwork Rating: Average; www.cisco.com) is a leading maker of hardware and software that links and manages computer networks. Its hardware includes routers, local area network (LAN) and asynchronous transfer mode (ATM) switches, and dial-up access servers.

In its fiscal 2015 first quarter, which ended October 31, 2014, Cisco’s revenue rose 1.3%, to $12.2 billion from $12.1 billion a year earlier.

Without unusual items, it earned $2.8 billion, down 2.3% from $2.9 billion. Cisco spent $1.0 billion on share buybacks in the latest quarter. Due to fewer shares outstanding, earnings per share gained 1.9%, to $0.54 from $0.53.

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