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MANITOBA TELECOM SERVICES INC. $31 (Toronto symbol MBT; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 77.1 million; Market cap: $2.4 billion; Price-to-sales ratio: 1.6; Dividend yield: 5.5%; TSINetwork Rating: Average; www.mts.ca) gets around 55% of its revenue from its 1.3 million telephone and wireless customers in Manitoba.

The remaining 45% comes from Allstream, which sells integrated telephone, Internet and other communication services to businesses across Canada.

The company has suffered a couple of setbacks in the past few months. The first came late last year, when Ottawa blocked its plan to sell Allstream for $405 million to a private firm controlled by an Egyptian billionaire.

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TELUS CORP. $39 (Toronto symbol T; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 622.3 million; Market cap: $24.3 billion; Price-to-sales ratio: 2.2; Dividend yield: 3.7%; TSINetwork Rating: Above Average; www.telus.com) gets 55% of its revenue from its 7.8 million wireless subscribers across Canada. It also has 3.3 million phone customers, 1.4 million high-speed Internet users and 815,000 TV subscribers.

The company continues to expand its wireless operations. In November 2013, it paid $229 million for Public Mobile, which had 220,000 customers. To put the price in context, Telus earned $1.4 billion, or $2.16 a share, before unusual items in 2013.

Telus is now offering $350 million for Mobilicity, which has 165,000 wireless customers. This is the company’s third attempt to buy Mobilicity, after Ottawa blocked the last two.

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p>BCE INC. $49 (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 777.3 million; Market cap: $38.1 billion; Price-to-sales ratio: 1.9; Dividend yield: 5.0%; TSINetwork Rating: Above Average; www.bce.ca) is Canada’s largest provider of telephone services, with 5.1 million customers in Ontario and Quebec. It also has 2.2 million high-speed Internet customers and 2.3 million TV subscribers. Together, these services supply 47% of the company’s revenue. BCE also sells wireless services across Canada. Its 7.8 million mobile subscribers provide 28% of its revenue.

A further 13% of revenue comes from its Bell Media division, which owns CTV Television, specialty channels and radio stations. It gets the remaining 12% from its 44% stake in Bell Aliant.

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p>FINNING INTERNATIONAL INC. $30 (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 172.1 million; Market cap: $5.2 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.0%; TSINetwork Rating: Above Average; www.finning.com) is the world’s largest dealer of tractors, bulldozers and trucks made by Caterpillar Inc. (New York symbol CAT). The company sells these products to customers in the mining, forest-products and construction industries. Strong demand for Finning’s gear in Western Canada and the U.K. is offsetting weaker sales in South America. Finning now believes its revenue was $1.7 billion in the first quarter of 2014, up 8% from a year earlier. Sales of new equipment rose 8%, while revenue from maintenance and other support services gained 9%.

Finning is a buy.

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p>SHAWCOR LTD. $55 (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 60.1 million; Market cap: $3.3 billion; Price-to-sales ratio: 1.8; Dividend yield: 1.1%; TSINetwork Rating: Average; www.shawcor.com) makes sealants and coatings that keep oil and natural gas pipelines from rusting. The company also makes industrial products, such as electrical wire and protective sheaths. Thanks to acquisitions and new pipeline-coating contracts in North America and Europe, ShawCor’s revenue rose 5.4% in the three months ended March 31, 2014, to $479.1 million from $454.7 million a year earlier.

However, the company’s earnings declined 12.3%, to $61.9 million from $70.6 million, due to lower profits from joint ventures and higher interest costs and taxes. Per-share earnings rose 2.0%, to $1.03 from $1.01, on fewer shares outstanding.

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PRECISION DRILLING CORP. $14 (Toronto symbol PD; Aggressive Growth Portfolio, Resource sector; Shares outstanding: 292.1 million; Market cap: $4.1 billion; Price-to-sales ratio: 2.0; Dividend yield: 1.7%; TSINetwork Rating: Extra Risk; www.precisiondrilling.com) provides contract drilling services to land-based oil and gas producers, mainly in North America. The company operates 330 rigs.

Higher oil and gas prices have spurred demand for Precision’s drilling services. As a result, its revenue rose 12.8% in the first quarter of 2014, to $672.2 million from $595.7 million a year earlier. Earnings gained 8.8%, to $101.6 million from $93.3 million. Per-share earnings rose 6.1%, to $0.35 from $0.33, on more shares outstanding.

In response to stronger-than-expected drilling activity, Precision now plans to spend $833 million to build and upgrade rigs in 2014, up 31.4% from its earlier forecast of $634 million. Drillers have already signed contracts for these new rigs, which cuts the risk of this investment.

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SNC-LAVALIN GROUP INC. $52 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 152.1 million; Market cap: $7.9 billion; Price-to-sales ratio: 1.0; Dividend yield: 1,8%; TSINetwork Rating: Average; www.snclavalin.com) has agreed to sell AltaLink to Berkshire Hathaway (New York symbol BRK.B), the holding company controlled by billionaire investor Warren Buffett.

Wholly owned AltaLink provides electricity to 85% of Alberta’s population through 12,000 kilometres of power lines and 280 substations.

The company will receive $3.2 billion (or $2.9 billion after taxes). The transaction should close by the end of this year.

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p>SUNCOR ENERGY INC. $43 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.5 billion; Market cap: $64.5 billion; Price-to-sales ratio: 1.5; Dividend yield: 2.1%; TSINetwork Rating: Average; www.suncor.com) is Canada’s largest integrated oil company by market cap (or the value of all its outstanding shares). Suncor gets 40% of its revenue and 65% of its earnings from producing crude oil and natural gas. Its 7.7 billion barrels of proven and probable reserves should last 35 years, based on current production rates.

The oil sands account for 70% of the company’s output. It also operates offshore platforms in Atlantic Canada and the North Sea, as well as conventional wells in Libya. However, political unrest has shut down some of Libya’s ports, limiting Suncor’s crude exports from the country.

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ENBRIDGE INC. $52.89 (Toronto symbol ENB; Shares outstanding: 831.5 million; Market cap: $43.9 billion; TSINetwork Rating: Above Average; Dividend yield: 2.7%; www.enbridge.com) has won approval to export some of the Canadian crude oil it ships into the U.S. to other countries.

Under the license terms, the pipeline operator must separate U.S.-produced oil from Canadian crude. The company expects exports to other markets to account for less than 2% of the volume its U.S. oil pipelines currently handle.

However, shipping oil to refineries in Europe and elsewhere would help producers collect higher prices for their crude. That would encourage them to raise their output, increasing demand for space on Enbridge’s pipelines.

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INNERGEX RENEWABLE ENERGY $10.60 (Toronto symbol INE; Shares outstanding: 95.9 million; Market cap: $1.0 billion; TSINetwork Rating: Extra Risk; Dividend yield 5.7%; www.innergex.com) operates 25 hydroelectric plants, six wind farms and one solar power facility in Quebec, Ontario, B.C. and Idaho. Innergex gets 73% of its power from hydroelectric plants. Wind supplies 26%, and solar generates 1%.

In contrast to Algonquin, Innergex is growing slowly, mostly by building its own hydroelectric and wind facilities, rather than through acquisitions. Right now, it is developing or building five projects.

But like Algonquin, Innergex makes sure it has firm long-term power-purchase contracts in place before it starts building new facilities.

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ALGONQUIN POWER & UTILITIES CORP. $7.88 (Toronto symbol AQN; Shares outstanding: 206.9 million; Market cap: $1.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.3%; www.algonquinpower.com) has nearly tripled in size over the past two years through acquisitions.

Algonquin bought four companies in 2012, and seven more in 2013. These moves included a $140.7-million U.S. deal for a natural gas distributor in Georgia with 64,000 clients.

The company’s regulated utility businesses now provide water, electricity and natural gas to over 480,000 customers, up sharply from 120,000 a year ago. In addition, Algonquin’s hydroelectric, thermal energy, solar and wind facilities generate 1,125 megawatts of power, up from 460.

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BANK OF NOVA SCOTIA $66.60 (Toronto symbol BNS; Shares outstanding: 1.2 billion; Market cap: $80.1 billion; TSINetwork Rating: Above Average; Dividend yield: 3.8%, www.scotiabank.com) has formally changed the name of its ING Direct subsidiary to Tangerine (www.tangerine.ca).

The bank bought ING Direct from its Netherlands-based parent, ING Group, in November 2012. This business provides no-fee banking services to 1.9 million clients, mainly over the Internet. The new name will let Bank of Nova Scotia keep using the orange colour associated with the ING Direct brand.

Tangerine will continue to operate separately from the bank’s retail banking operations. However, Bank of Nova Scotia will let Tangerine customers use its ATMs without paying fees.

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ENCANA CORP. $25.39 (Toronto symbol ECA; Shares outstanding: 740.9 million; Market cap: $19.0 billion; TSINetwork Rating: Average; Dividend yield: 1.2%; www.encana.com) has released more details regarding its plan to spin off its Clearwater oil and gas properties in southern Alberta.

The new company, called PrairieSky Royalty, will hold the oil and gas rights to 5.2 million acres. PrairieSky will not drill wells or explore for new reserves. Instead, it will collect royalties from other producers. That should generate steady cash flows for monthly dividends.

Encana plans to complete an initial public offering for PrairieSky in the next two to three months—although it will hang on to a majority stake. In the future, it may hand out that stake as a special dividend to its shareholders.

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ISHARES MSCI BRAZIL INDEX FUND $47.04 (New York Exchange symbol EWZ; buy or sell through brokers) is an ETF that is designed to track the Brazilian stock market.

Its top holdings are Petrobras (oil and gas), 10.3%; Cia Itau Unibanco Holding (banking), 8.7%; Vale do Rio Doce (mining), 8.1%; Cia de Bebidas das Americas (beer and beverages), 7.6%; Banco Brandesco, 6.4%; and BRF SA (food), 3.5%.

The ETF was launched on July 10, 2000. It has an expense ratio of 0.62%.

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ISHARES MSCI CHILE INVESTABLE MARKET INDEX FUND $46.03 (New York Exchange symbol ECH; buy or sell through brokers) is an ETF that aims to track the MSCI Chile Investable Market Index, which consists of stocks that mainly trade on the Santiago Stock Exchange.

The fund’s top holdings are S.A.C.I. Falabella (retail), 9.0%; Enersis SA (electricity), 8.8%; Empresas Copec SA (conglomerate), 8.5%; LATAM Airlines, 6.9%; Empresa Nacional de Electricidad (electricity), 6.7%; Cencosud SA (retailer), 5.2%; Banco Santander Chile (banking), 4.7%; Quimica y Minera de Chile (mining), 4.5%; Banco de Chile, 4.4%; and Empresas CMPC (pulp and paper), 4.0%.

The fund’s industry breakdown is: Utilities, 25.0%; Financials, 17.3%; Materials, 13.7%; Consumer Discretionary, 10.6%; Industrials, 9.9%; Consumer Staples, 9.9%; Energy, 8.5%; Telecommunications, 2.4%; and Information Technology, 2.0%.

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ISHARES MSCI GERMANY FUND $31.68 (New York Exchange symbol EWG; buy or sell through brokers) tracks the stocks in the MSCI Germany Index.

This index aims to replicate 85% of the total market capitalization of the German stock market. The remaining 15% is unavailable for investment, partly due to limitations on foreign ownership.

The ETF’s top holdings are Bayer (diversified chemicals), 8.8%; Siemens (engineering conglomerate), 8.5%; BASF (chemicals), 8.3%; Daimler (autos), 7.1%; Allianz (insurance), 6.2%; SAP (software), 5.8%; Deutsche Telekom, 3.7%; Deutsche Bank, 3.6%; and BMW, 3.3%.

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ISHARES MSCI SOUTH KOREA INDEX FUND $62.55 (New York Exchange symbol EWY; buy or sell through brokers) aims to track the MSCI Korea Index.

The ETF’s top holdings are Samsung Electronics, 22.1%; Hyundai Motor Co., 5.8%; SK Hynix Semiconductor, 3.5%; Naver (Internet content), 3.4%; Hyundai Mobis (auto parts), 3.3%; Posco (steel), 3.1%; Shinhan Financial, 3.0%; Kia Motors, 2.4%; LG Chemical, 2.0%; and KB Financial, 2.0%.

The fund’s industry breakdown is as follows: Information Technology, 32.9%; Consumer Discretionary, 19.1%; Financials, 14.2%; Industrials, 12.8%; Materials, 9.2%; Consumer Staples, 5.3%; Energy, 2.1%; Utilities, 1.8%; Telecommunication Services, 1.0%; and Health Care, 0.7%.

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ISHARES MSCI EMERGING MARKETS INDEX FUND $41.33 (New York symbol EEM; buy or sell through brokers) aims to track the MSCI Emerging Markets Index.

Its geographic breakdown includes China, 17.6%; South Korea, 16.0%; Taiwan, 11.9%; Brazil, 11.3%; South Africa, 7.8%; India, 6.7%; Russia, 4.7%; Mexico, 4.7%; Malaysia, 3.9%; and Indonesia, 2.7%.

The fund’s top holdings are Samsung Electronics (South Korea), 3.9%; Taiwan Semiconductor (computer chips), 2.5%; Tencent Holdings (China: Internet), 1.8%; China Mobile, 1.4%; China Construction Bank, 1.3%; Industrial & Commercial Bank of China, 1.2%; Itau Unibanco Holding (Brazil: banking), 1.1%; and Gazprom (Russia: gas utility), 1.1%.

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ISHARES MSCI JAPAN INDEX FUND $11.08 (New York Exchange symbol EWJ; buy or sell through brokers; us.ishares.com) is an ETF that tries to match the return of the Morgan Stanley Capital International (MSCI) Japan index.

The fund’s top holdings include Toyota, 5.8%; Softbank Corp., 2.8%; Mitsubishi UFJ Financial, 2.7%; Honda Motor, 2.2%; Sumitomo Mitsui Financial, 1.9%; Mizuho Financial Group, 1.7%; Japan Tobacco, 1.4%; Hitachi, 1.4%; Takeda Pharmaceutical, 1.4%; and Canon, 1.4%.

The fund’s industry breakdown includes: Consumer Discretionary, 20.8%; Industrials, 19.6%; Financials, 19.5%; Information Technology, 10.9%; Consumer Staples, 6.6%; Health Care, 6.4%; Telecommunication Services, 5.7%; Materials, 5.6%; Utilities, 2.5%; and Energy, 1.2%.

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LOBLAW COS. $47.65 (Toronto symbol L; Shares outstanding: 412.5 million; Market cap: $18.9 billion; TSINetwork Rating: Above Average; Yield: 2.0%; www.loblaw.ca) has closed its purchase of Shoppers Drug Mart, which has 1,253 drugstores across Canada.

Loblaw paid $12.4 billion, consisting of $6.6 billion in cash and $5.8 billion in shares. Shoppers shareholders now own 29% of the combined company.

In all, the firm will have $43 billion of annual revenue and $3 billion of gross earnings. Combining marketing and distribution should save $100 million in the first year and $300 million annually by the end of the third year.

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ENERPLUS CORP. $24.31 (Toronto symbol ERF; Shares outstanding: 202.8 million; Market cap: $5.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.5%) produces an average of 94,167 barrels of oil equivalent a day (54% gas and 46% oil).

The company’s properties are mainly in Alberta, Saskatchewan, B.C., North Dakota and Montana, as well as the Marcellus shale, which passes through Pennsylvania, New York, Ohio and West Virginia.

In the three months ended December 31, 2013, Enerplus’s production increased 10.1% from a year earlier. However, cash flow per share fell 11.9%, to $0.89 from $1.01, as a short-term lack of pipeline capacity made it harder for the company to sell its oil at market prices.

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ARC RESOURCES $32.52 (Toronto symbol ARX; Shares outstanding: 314.9 million; Market cap: $10.4 billion; TSINetwork Rating: Speculative; Dividend yield: 3.7%; www.arcresources.com) produces oil and natural gas in Western Canada. Its average daily output of 100,883 barrels of oil equivalent is weighted 59% to gas and 41% to oil.

In the three months ended December 31, 2013, ARC’s cash flow per share rose 11.8%, to $0.76 from $0.68 a year earlier. Production gained 5.4%, and the company’s realized gas price rose 8.7%. Oil prices increased 2.9%.

ARC’s long-term debt is $859.2 million, or a low 8.3% of its market cap. It trades at 9.7 times its forecast 2014 cash flow of $3.34 a share.

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CRESCENT POINT ENERGY $44.59 (Toronto symbol CPG; Shares outstanding: 395.7 million; Market cap: $17.6 billion; TSINetwork Rating: Extra Risk; Div. yield: 6.2%; www.crescentpointenergy.com) continues to add to its production in southeastern Saskatchewan’s Bakken light-oil area.

The Bakken, which covers parts of Montana, North Dakota and Saskatchewan, could contain more than 500 billion barrels of oil.

Oil was first discovered in the Bakken region in 1951, but it has always been hard to extract from the shale rock. However, modern techniques, such as horizontal (or slant) drilling, have made it easier for companies like Crescent Point to access the oil.

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CANADIAN PACIFIC RAILWAY $171.14 (Toronto symbol CP; Shares outstanding: 175.7 million; Market cap: $29.0 billion; TSINetwork Rating: Average; Dividend yield: 0.8%; www.cpr.ca), transports freight between Montreal and Vancouver, and connects with hubs in the U.S. Midwest and northeast.

In the quarter ended March 31, 2014, CP’s earnings per share rose 16.1%, to $1.44 from $1.24 a year earlier. Revenue increased 0.9%, to $1.51 billion from $1.50 billion.

CP’s operating ratio improved to 72.0% from 75.8% a year ago. (Operating ratio is calculated by dividing regular operating costs by revenue. The lower the ratio, the better.) It continues to benefit from its efficiency improvements, mainly replacing locomotives, improving tracks and adding software that optimizes train loads and speeds.

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Pat McKeough responds to many requests from members of his Inner Circle for specific advice about investing in stocks 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 a drug company that specializes in combatting viruses. Hepatitis C is the primary target of treatments developed by Gilead Sciences, but it also plays a significant role in treatments for HIV/AIDS. Pat examines the status of the company’s leading drugs and analyzes its ability to maintain a position of leadership in a fiercely competitive field. ...