Search

VANGUARD FTSE EMERGING MARKETS ETF $40.01 (New York symbol VWO; buy or sell through brokers) aims to track the Financial Times Stock Exchange (FTSE) Transitions Index, which is made up of common stocks of companies in developing countries. The fund’s MER is just 0.15%.

The Vanguard FTSE Emerging Markets ETF’s top holdings include Taiwan Semiconductor (Taiwan: computer chips), China Mobile (China: wireless), Petroleo Brasileiro SA (Brazil: oil and gas), Itau Unibanco Holding SA (Brazil: banking), China Construction Bank, Tencent Holdings (China: Internet), Industrial & Commercial Bank of China, Naspers Ltd. (South Africa: media) and Hon Hai Precision Industry (Taiwan: electronics).

The $59.3-billion fund’s breakdown by country is as follows: China (20.6%), Taiwan (13.7%), Brazil (13.7%), India (9.9%), South Africa (9.7%), Mexico (5.7%), Russia (5.4%), Malaysia (5.2%), Indonesia (2.9%), Thailand (2.8%), Turkey (1.9%), Chile (1.7%), Poland (1.7%) and others (5.1%).

...

VANGUARD GROWTH ETF $98.25 (New York symbol VUG; buy or sell through brokers) aims to track the Center for Research in Security Prices (CRSP) U.S. Large Cap Growth Index, a broadly diversified index that mainly consists of large U.S. companies. The fund’s MER is just 0.09%.

The $42.4-billion Vanguard Growth ETF’s top holdings are Apple, Google, Coca-Cola, Facebook, Oracle, Schlumberger, Comcast, Qualcomm, Gilead Sciences and Walt Disney Co.

The fund’s breakdown by industry is as follows: Technology (23.8%), Consumer Services (19.7%), Financials (12.3%), Health Care (12.2%), Industrials (11.8%), Consumer Goods (9.9%), Oil and Gas (8.1%), Materials (1.6%), Utilities (0.3%) and Telecommunication Services (0.3%).

...

VERESEN $17.25 (Toronto symbol VSN; Shares outstanding: 220.6 million; Market cap: $3.8 billion; TSINetwork Rating: Average; Dividend yield: 5.8%) has agreed to pay $1.43 billion for Global Infrastructure Partners’ 50% interest in the Ruby pipeline system. Ruby is a newly built natural gas line that runs 680 miles from Wyoming to Oregon. Right now, it can pump 1.5 billion cubic feet a day, but that could be increased to 2.0 billion. Partner Kinder Morgan will operate the system.

The Ruby pipeline will benefit Veresen in two main ways:

First, the company is buying its interest through preferred shares that it can convert into common shares whenever it chooses. That means it will receive steady preferred dividends that will immediately add to its cash flow per share.

...

CANADIAN TIRE CORP. $126 (Toronto symbol CTC.A; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 78.1 million; Market cap: $9.8 billion; Price-to-sales ratio: 0.8; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.canadiantire.ca) continues to add new locations and renovate older stores. It’s also benefiting from its 2011 purchase of the Forzani Group of sporting goods stores, including the popular Sport Chek banner. These moves are helping it compete with U.S.-based retailers like Wal-Mart.

In the quarter ended September 27, 2014, Canadian Tire’s earnings rose 18.4%, to $172.2 million from $145.5 million a year earlier. Earnings per share gained 21.2%, to $2.17 from $1.79, on fewer shares outstanding.

Overall sales rose 3.9%, to $3.1 billion from $3.0 billion. Same-store sales at the 493 Canadian Tire outlets gained 3.2% on strong demand for summer goods, like garden tools and patio furniture, and automotive products and services.

...

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 investing 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: “If you consider charitable donations an investment in a good cause, be prepared to look into them as carefully as you would your investments to ensure that your money is going to the right place.”...

Every Tuesday we bring you “Best Canadian Stocks.” You get our specific recommendation 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.

BCE is facing regulatory hurdles, but the company is improving its services while keeping its operating costs down. That should let it maintain its high dividend yield.

BCE INC. (Toronto symbol BCE; www.bce.ca ) is Canada’s largest provider of telephone services, with 5.0 million customers in Ontario and Quebec. It also has 2.2 million high-speed Internet customers and 2.3 million TV subscribers.

BCE also sells wireless services to 7.8 million customers across Canada, and its Bell Media segment owns CTV Television, specialty channels and radio stations.

The company recently offered to buy the 56% of Bell Aliant (Toronto symbol BA) that it doesn’t already own. Bell Aliant sells phone and Internet services to 2.3 million clients in Atlantic Canada and rural Ontario and Quebec. It also provides wireless services through an alliance with BCE.

...

Every Monday we feature “A Stock to Sell” as our daily post. With every stock we recommend as a sell, we give you a full explanation of why we advise against investing in the stock at this time. Domtar Corp. (symbol UFS on Toronto; www.domtar.com), is among North America’s largest producers of paper (sold in huge rolls), with an annual capacity of about 3.4 million tons....

Pat McKeough responds to many requests from members of his Inner Circle for specific investment 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 a report on one of the stocks profiled in 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 “Our Top U.S. Stocks” on Thursday. Last week we had a question from an Inner Circle member about one of North America’s leading big-box retailers. Costco has built a growing business on the membership fees it charges and its policy of buying directly from manufacturers, which helps keep prices low. Pat balances the company’s rising revenues, international expansion plans and high membership renewal rate against the intensely competitive market in which it operates. Q: Pat: What is your advice on Costco? Is it a buy right now? Thank you....

Every Thursday we bring you “Best U.S. Stocks.” 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, from coverage in our newsletter on U.S. investing, Wall Street Stock Forecaster.

More consumers are shopping online instead of in stores. That trend has forced some book and music stores to close and is putting pressure on electronics chains and sellers of office and computer equipment.

Even so, most consumers still prefer to shop for clothes in stores, where they can try them on before buying. That’s a plus for Nordstrom. Moreover, the company continues to invest heavily in e-commerce and make it easier for shoppers to pick up their online orders in stores.

...

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 investment advice, and shows you how you can put it into practice right away. Today’s tip: “The best way to stay ahead of the market—and all the people who manage to underperform it—is to avoid going in and out trying to buy low and sell high.”...

Every Tuesday we bring you “Best Canadian Stocks.” You get our specific recommendation 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.

CGI GROUP INC. (Toronto symbol GIB.A; www.cgi.com)is Canada’s largest provider ofcomputer outsourcing services. CGI helps its clients automate routine functions, like accounting andbuying supplies. That makes them more efficientand lets them focus on their main businesses.

CGI follows what it calls a “Build and Buy” strategy. The “Build” part refers to expanding relationships with existing clients and attracting new ones. The company’s long-term outsourcing contracts give it steady, predictable revenue streams. They also let CGI sell these clients other services.

The “Buy” part of the strategy involves making acquisitions. CGI tempers the risk of buying other companies to fuel its growth by targeting firms that enhance its expertise or geographic presence.

For example, in August 2012, CGI completed the largest purchase in its history when it paid $2.7 billion for U.K.-based outsourcing firm Logica plc. As a result, Europe now accounts for 35% of CGI’s revenue, followed by the U.S. (25%), South America (20%), Canada (15%) and Asia (5%).

...

Every Monday we feature “A Stock to Sell” as our daily post. With every stock we recommend as a sell, we give you a full explanation of why we advise against investing in the stock at this time. Virtus Oil and Gas Corp. (symbol VOIL on the OTCQB market; www.virtusoilandgas.com), began trading in June 2014. The OTCQB market, formerly called the U.S. over-the-counter bulletin board, has no minimum financial standards and includes shell companies and penny stocks with minimal operations....

3M COMPANY $139 (New York symbol MMM; Conservative Growth and Income Portfolios, Manufacturing & Industry sector; Shares outstanding: 648.0 million; Market cap: $90.1 billion; Price-to-sales ratio: 3.0; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.3m.com) started up in 1902, when it was called the Minnesota Mining & Manufacturing Company.

It now makes over 55,000 different products, including pressure-sensitive masking and packaging tape, air purifiers, medical device components and reflective highway signs. Top brands include Post-it notes, Scotch tape, Scotch-Brite cleaning products, Scotchguard protection and Thinsulate insulation.

3M’s wide variety of products cuts its reliance on a single industry or customer. Sales from outside the U.S. account for two-thirds of its total.

...

YUM! BRANDS INC. $69 (New York symbol YUM; Aggressive Growth Portfolio; Consumer sector; Shares outstanding: 437.5 million; Market cap: $30.2 billion; Price-to-sales ratio: 2.3; Dividend yield: 2.4%; TSINetwork Rating: Above Average; www.yum.com) earned $404 million in the three months ended September 6, 2014, up 165.8% from $152 million a year earlier. Per-share earnings rose 169.7%, to $0.89 from $0.33, on fewer shares outstanding.

If you disregard unusual items, including last year’s writedown of Yum’s investment in the Little Sheep restaurant chain in China, earnings rose 2.4%, to $0.87 a share from $0.85.

Sales declined 3.2%, to $3.35 billion from $3.5 billion. That’s mainly because a food-safety scare has cut traffic at Yum’s KFC outlets in China. As a result, the China division’s same-store sales fell 14%. However, same-store sales rose 3% at the company’s other KFC locations and 3% at Taco Bell. Same-store sales also rose 4% at the India division, while Pizza Hut saw a 1% decline.

...

CEDAR FAIR L.P. $47 (New York symbol FUN; Income Portfolio, Consumer sector; Units outstanding: 55.9 million; Market cap: $2.6 billion; Priceto- sales ratio: 2.2; Dividend yield: 6.0%; TSINetwork Rating: Average; www.cedarfair.com) owns 11 amusement parks, three outdoor water parks, one indoor water park and five hotels.

The partnership reported record revenue of $939 million in the first eight months of 2014. Excluding a water park Cedar Fair sold in August 2013, comparable- park revenue improved by $12 million, or 1.3%, in 2014.

Colder-than-normal summer weather in the Great Lakes region cut attendance by 1%. However, visitors spent an average of 3% more in Cedar Fair’s parks.

...

KRAFT FOODS GROUP INC. $57 (Nasdaq symbol KRFT; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 594.7 million; Market cap: $33.9 billion; Price-to-sales ratio: 1.9; Dividend yield: 3.9%; TSINetwork Rating: Above Average; www.kraftfoodsgroup.com) makes a variety of grocery products, including Kraft macaroni and cheese, Oscar Mayer meats, Philadelphia cream cheese, Maxwell House coffee, Jell-O desserts and Miracle Whip salad dressing.

The company has raised its quarterly dividend by 4.8%, to $0.55 a share from $0.525. The new annual rate of $2.20 yields 3.9%. This is the second time Kraft has raised the payout since its spinoff from Mondelez International in October 2012.

Kraft Foods is a buy.

...

NEWMONT MINING CORP. $23 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 498.8 million; Market cap: $11.5 billion; Price-to-sales ratio: 1.5; Dividend yield: 0.4%; TSINetwork Rating: Average; www.newmont.com) has sold its 44% stake in a joint venture that owns the La Herradura gold mine in northern Mexico.

The company received $450 million for its stake. Including this sale, Newmont has now raised $1.3 billion by selling less important assets in the past year. That frees up cash for more promising projects, such as its Merian gold mine in Suriname, which will cost $1 billion and should open in late 2016. Merian’s reserves should last 11 years.

Newmont is a hold.

...

CANON INC. ADRs $30 (New York symbol CAJ; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.1 billion; Market cap: $33.0 billion; Price-to-sales ratio: 1.0; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.canon.com) continues to see weak demand for printers and digital cameras. That’s because consumers are taking more photos with their smartphones. They’re also increasingly storing their pictures online instead of printing them.

As a result, Canon’s sales fell 6.0% in the three months ended June 30, 2014, to $9.2 billion from $9.8 billion a year earlier.

However, thanks to a successful cost-cutting plan, the company’s earnings jumped 19.2%, to $800.5 million from $671.7 million. Earnings per ADR rose 24.1%, to $0.72 from $0.58 (each American Depositary Receipt represents one common share), on fewer shares outstanding.

...

HEWLETT-PACKARD CO. $34 (New York symbol HPQ; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.9 billion; Market cap: $64.6 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.9%; TSINetwork Rating: Average; www.hp.com) plans to break itself into two separate companies.

The first firm, called Hewlett-Packard Enterprise, will sell computing products, like servers and analytics software, to businesses and governments. It will also offer cloud computing services and financing. Hewlett-Packard Enterprise will have annual revenue of $58.4 billion and gross profits of $6 billion.

Meg Whitman, Hewlett’s current chief executive officer, will become this firm’s CEO.

...

SNAP-ON INC. $126 (New York symbol SNA; Conservative Growth and Income Portfolios, Manufacturing & Industry sector; Shares outstanding: 58.1 million; Market cap: $7.3 billion; Price-to-sales ratio: 2.2; Dividend yield: 1.4%; TSINetwork Rating: Average; www.snapon.com) makes tools for auto mechanics and sells them through a fleet of franchised vans that visit garages. It also makes specialized tools for mining companies, electrical power plant operators and other industrial customers.

The company plans to spend $75 million to $80 million in 2014 on upgrades to its distribution network, developing new products and expanding in emerging markets (overseas customers supply around a third of its revenue).

Snap-On is also fueling its growth with acquisitions. In May 2013, it bought Challenger Lifts for $38.2 million. This business makes systems that raise cars off the ground. The purchase contributed $39.3 million to Snap-On’s 2013 revenue of $3.1 billion.

...

MONSANTO CO. $113 (New York symbol MON, Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 524.4 million; Market cap: $59.3 billion; Price-to-sales ratio: 3.9; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.monsanto.com) gets 70% of its revenue from genetically modified seeds for corn, soybeans and other crops. The remaining 30% comes from selling herbicides, mainly under the Roundup brand.

In its 2014 fiscal year, which ended August 31, 2014, Monsanto’s earnings rose 10.4%, to $2.7 billion from $2.5 billion in 2013. Per-share earnings gained 13.5%, to $5.22 from $4.60, on fewer shares outstanding. Without unusual items, such as costs to settle a lawsuit, earnings per share rose 14.7%, to $5.23 from $4.56.

Sales rose 6.7%, to $15.9 billion from $14.9 billion. Seed sales gained 3.9%, as record soybean seed demand offset weaker sales of corn seeds. Sales of other agricultural products rose 13.1%.

...

PEPSICO INC. $94 (New York symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.5 billion; Market cap: $141.0 billion; Price-to-sales ratio: 2.2; Dividend yield: 2.8%; TSINetwork Rating: Above Average; www.pepsico.com) has launched Pepsi True, a new cola that has 30% less sugar than regular Pepsi.

This new drink uses stevia, an all-natural sweetener without the calories or health drawbacks of sugar. Pepsi True will also contain no artificial sweeteners or high-fructose corn syrup.

The launch follows a nine-year decline in U.S. soft drink sales as a result of increased health concerns spurred by research linking these drinks to obesity and other conditions.

...

FAIR ISAAC CORP. $56 (New York symbol FICO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 32.2 million; Market cap: $1.8 billion; Price-to-sales ratio: 2.7; Dividend yield: 0.1%; TSINetwork Rating: Average; www.fico.com) makes FICO Scores, a computer program that helps businesses make better decisions about customer creditworthiness. It also makes software that helps credit card issuers control fraud and analyze their cardholders’spending patterns.

In its 2014 third quarter, which ended June 30, Fair Isaac earned $29.2 million, down 0.1% from $29.3 million a year earlier. Earnings per share rose 3.8%, to $0.83 from $0.80, on fewer shares outstanding.

Overall revenue gained 7.5%, to $197.6 million from $183.8 million. Revenue from its applications division (66% of the total) rose 12.9% on increased licensing fees from software that detects bank fraud.

...

DUN & BRADSTREET CORP. $117 (New York symbol DNB; Conservative Growth Portfolio, Finance sector; Shares outstanding: 36.3 million; Market cap: $4.2 billion; Price-to-sales ratio: 2.7; Dividend yield: 1.5%; TSINetwork Rating: Average; www.dnb.com) provides credit reports on over 230 million companies. Its clients use this information to make lending and buying decisions.

Credit reports supply two thirds of Dun & Bradstreet’s revenue. The remaining third comes from other information products, including software that helps businesses manage websites and customer data.

In the quarter ended June 30, 2014, Dun & Bradstreet’s revenue rose 1.8%, to $393.0 million from $386.0 million a year earlier. Stronger demand for its credit reports and other products in North America (72% of total revenue) and Europe (16%) offset weaker sales in Asia (12%).

...

BROADRIDGE FINANCIAL SERVICES INC. $42 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 119.5 million; Market cap: $5.0 billion; Price-to-sales ratio: 2.0; Dividend yield: 2.6%; TSINetwork Rating: Average; www.broadridge.com) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. The company processes 85% of all proxy votes in the U.S.

Without one-time items, Broadridge earned $144.6 million in its fiscal 2014 fourth quarter, which ended June 30, 2014. That’s up 1.5% from $142.4 million a year earlier. Earnings per share rose 0.9%, to $1.16 from $1.15, on more shares outstanding.

Overall revenue gained 2.4%, to $885.9 million from $865.1 million. Revenue from contracts that pay recurring fees rose 7% and accounted for two-thirds of the total. The remaining third comes from one-time events, such as notifications of special shareholder meetings and sending out information when mutual funds change managers.

...