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POTASH CORP. OF SASKATCHEWAN $37 (Toronto symbol POT; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 856.1 million; Market cap: $31.7 billion; Price-to-sales ratio: 4.2; Dividend yield: 4.2%; TSINetwork Rating: Average; www.potashcorp.com) earned $2.04 a share in 2013, down 13.9% from $2.37 in 2012 (all amounts except share price and market cap in U.S. dollars). Sales fell 7.8%, to $7.3 billion from $7.9 billion. North American potash demand should rebound in 2014, because farmers will need more fertilizer to replenish their soil after last year’s record crops. However, delayed orders will likely slow exports to Asia, because buyers feel prices will keep falling after last July’s breakup of a marketing alliance between producers in Russia and Belarus. Potash Corp. is still a hold.

CAE INC. $14 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 262.2 million; Market cap: $3.7 billion; Price-to-sales ratio: 1.8; Dividend yield: 1.7%; TSINetwork Rating: Average; www.cae.com) earned $46.1 million in its fiscal 2014 third quarter, which ended December 31, 2013. That’s up 22.9% from $37.5 million a year earlier. Per-share earnings rose 28.6%, to $0.18 from $0.14. Sales rose 2.5%, to $513.6 million from $500.9 million. The company sold 12 flight simulators in the quarter and three more since January 1. That brings this fiscal year’s total to 43—a new record. As a result, sales at its civilian simulator and pilot-training businesses (55% of total sales) rose 3.2%....

CANADIAN IMPERIAL BANK OF COMMERCE $89 (Toronto symbol CM; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 399.3 million; Market cap: $35.5 billion; Price-to-sales ratio: 2.1; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.cibc.com) is the fifthlargest Canadian bank, with $398.4 billion of assets. CIBC recently launched a new credit card loyalty plan for travellers after it lost the Aeroplan contract to TD (see page 21). This plan, called Aventura, lets cardholders earn points on their purchases and redeem them for free flights and other benefits. Losing the Aeroplan business will cut CIBC’s annual earnings by $0.45 a share. To put that in context, it earned $3.6 billion in its 2013 fiscal year, which ended October 31, 2013, up 6.5% from $3.4 billion in 2012. Earnings per share gained 8.8%, to $8.78 from $8.07, on fewer shares outstanding....

BANK OF MONTREAL $70 (Toronto symbol BMO; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 644.5 million; Market cap: $45.1 billion; Price-to-sales ratio: 2.2; Dividend yield: 4.2%; TSINetwork Rating: Above Average; www.bmo.com) is Canada’s fourth-largest bank, with $537.3 billion of assets. The bank is buying U.K.-based F&C Asset Management, which sells investment services to individuals and institutional clients, such as pension plans and insurance companies. F&C has $136 billion U.S. in assets under management, which will increase the assets that Bank of Montreal’s Global Asset Management division administers to $269 billion U.S. The purchase will also add many wealth management clients outside North America....

BANK OF NOVA SCOTIA $63 (Toronto symbol BNS; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.2 billion; Market cap: $75.6 billion; Price-to-sales ratio: 2.6; Dividend yield: 3.9%; TSINetwork Rating: Above Average; www.scotiabank.com) is Canada’s thirdlargest bank, with assets of $743.8 billion. The bank continues to profit from its November 2012 purchase of ING Direct, which offers a variety of no-fee banking services. ING has 1.9 million customers and $30 billion in deposits. Bank of Nova Scotia will soon change ING’s name to Tangerine (it has to stop using the ING brand by May 2014). The change will let this business keep using the orange colour associated with ING Direct. In its 2013 fiscal year, which ended October 31, 2013, the bank’s earnings rose 3.6%, to $6.7 billion from $6.5 billion in fiscal 2012. Due to more shares outstanding, earnings per share fell 1.3%, to $5.15 from $5.22. Without unusual items, such as a gain on a real estate sale, per-share earnings rose 10.2%, to $5.08 from $4.61....

ROYAL BANK OF CANADA $71 (Toronto symbol RY; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.4 billion; Market cap: $99.4 billion; Price-to-sales ratio: 2.7; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.rbc.com) is Canada’s second-largest bank, with $860.8 billion of assets. Royal recently agreed to sell its 13 branches and related operations in Jamaica. The country’s struggling economy has hurt these branches’ profits in the past few years, so selling them frees up cash for Royal to invest in its more promising Caribbean business. The bank will record a one-time loss of $60 million on the deal. Meanwhile, Royal earned $8.4 billion in its 2013 fiscal year, which ended October 31, 2013. That’s up 11.1% from $7.6 billion in 2012. Earnings per share rose 12.4%, to $5.54 from $4.93, on fewer shares outstanding....

SUNCOR ENERGY INC. $36 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.5 billion; Market cap: $54.0 billion; Price-to-sales ratio: 1.3; Dividend yield: 2.6%; TSINetwork Rating: Average; www. suncor.com) produced 558,100 barrels of oil equivalent (99% oil and 1% natural gas) a day in the three months ended December 31, 2013. That’s up 0.3% from 556,500 barrels a year earlier. Oil sands production rose 17.9%, to a record 446,500 barrels a day, because Suncor started up a new phase of its Firebag project. That helped offset lower conventional output following the company’s recent sale of a big part of its Western Canadian gas properties. The higher production helped push up Suncor’s revenue by 7.4%, to $10.2 billion from $9.5 billion. However, its average realized price for oil sands bitumen fell 5.2%, and a lack of pipeline capacity is forcing the company to ship more crude by rail. As a result, its earnings fell 1.5%, to $973 million from $988 million....

ENBRIDGE INC. $47 (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 831.1 million; Market cap: $39.1 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www. enbridge.com) plans to expand its storage terminal near northern Alberta’s Christina Lake oil sands project, which will help it take advantage of t h i s p r o p e r t y ’ s r i s i n g production. The company will also build pipes and other infrastructure to connect the expansion with its existing pipelines. This project will cost $200 million. That’s equal to 72% of the $278 million, or $0.34 a share, that Enbridge earned in the third quarter of 2013. It expects to finish construction in the third quarter of 2015. Enbridge is a buy.

TORSTAR CORP. $5.12 (www.torstar.com) continues to cut costs as more people get their news from the Internet. This secular trend is working against newspapers and print advertising. As a result, we’ve cut Torstar’s TSINetwork Rating from “Above Average” to “Average”....

EMERA INC. $33 (www.emera.com) earned $259.4 million in 2013, up 12.5% from $230.5 million in 2012. Due to more shares outstanding, earnings per share rose just 6.0%, to $1.96 from $1.85. Revenue rose 8.3%, to $2.2 billion from $2.1 billion. These increases are mainly due to Emera’s April 2013 purchase of three gas-fired power plants in New England....

CAMPBELL SOUP CO. $43 (New York symbol CPB; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 315.0 million; Market cap: $13.5 billion; Price-to-sales ratio: 1.7; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.campbellsoupcompany.com) is the world’s largest maker of canned soups. It also makes Prego canned pasta and sauces, Pepperidge Farm cookies and V8 vegetable juices. Wal-Mart accounts for 19% of its sales.




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NORDSTROM INC. $61 (New York symbol JWN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 193.4 million; Market cap: $11.8 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.0%; TSINetwork Rating: Average; www.nordstrom.com) mainly sells upscale clothing, accessories and footwear.

In Nordstrom’s 2014 fiscal year, which ended February 1, 2014, its sales rose 3.3%, to $12.5 billion from $12.1 billion in 2013. Same-store sales gained 2.5%. Online sales jumped 30%.

Nordstrom continues to open new stores, particularly discount outlets. The related costs were part of the reason why its earnings fell 0.1%, to $734 million from $735 million. Per-share earnings rose 4.2%, to $3.71 from $3.56, on fewer shares outstanding.
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EBAY INC. $57 (Nasdaq symbol EBAY; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 1.3 billion; Market cap: $74.1 billion; Priceto- sales ratio: 4.6; No dividends paid; TSINetwork Rating: Above Average; www.ebay.com) has paid an undisclosed sum for PhiSix Fashion Labs.

This private firm specializes in 3-D computergraphic simulations. eBay plans to use this technology to show customers of its auction and e-commerce websites how they look in different clothing items. This should reduce returns and spur more people to buy clothes online.

eBay is a buy....

NVIDIA CORP. $19 (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 568.5 million; Market cap: $10.8 billion; Priceto- sales ratio: 2.8; Dividend yield: 1.8%; TSINetwork Rating: Average; www.nvidia.com) earned $588.4 million in its 2014 fiscal year, which ended January 26, 2014. That’s down 19.2% from $728.4 million in fiscal 2013. Earnings per share fell 15.4%, to $0.99 from $1.17, on fewer shares outstanding.

Revenue declined 3.5%, to $4.1 billion from $4.3 billion. Weak demand for entry-level computers continues to hurt sales of Nvidia’s graphic chips, but sales of high-end desktops and servers remain strong. Sales of its Tegra chips for mobile devices also slowed, particularly in the first half of the year, as customers waited for the company to launch a new version.

Nvidia is a hold.
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GOOGLE INC. $1,220 (Nasdaq symbol GOOG; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 336.1 million; Market cap: $410.0 billion; Price-to-sales ratio: 6.9; No dividends paid; TSINetwork Rating: Above Average; www.google.com) continues to launch new services to cut its reliance on Internet search.

For instance, it now offers TV and Internet access through its own fibre optic networks in Kansas City, Missouri, Austin, Texas and Provo, Utah. Google’s networks are up to 100 times faster than its rivals’, and it’s considering expanding them to 34 more cities.

More users are watching video-streaming services like Google’s YouTube. As a result, Internet providers want video sites to pay more to compensate for the heavy demand this puts on their networks. Owning its own broadband service strengthens Google’s bargaining position.
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AMEREN CORP. $40 (New York symbol AEE; Income Portfolio, Utilities sector; Shares outstanding: 242.6 million; Market cap: $9.7 billion; Price-to-sales ratio: 1.5; Dividend yield: 4.0%; TSINetwork Rating: Average; www.ameren.com) has received regulatory approval to build a 644-kilometre, $1.1-billion power line in central Illinois. The project will make the state’s power grid more reliable when it’s finished in 2019.

Meanwhile, the company earned $512 million in 2013, down 0.8% from $516 million in 2012. Due to more shares outstanding, earnings per share fell 1.4%, to $2.10 from $2.13. That’s mainly because the company had to shut down a nuclear reactor for refueling. Higher power rates raised its revenue by 1.0%, to $5.84 billion from $5.78 billion.

Ameren is a hold....

CEDAR FAIR L.P. $53 (New York symbol FUN; Income Portfolio, Consumer sector; Units outstanding: 55.7 million; Market cap: $3.0 billion; Price-to-sales ratio: 2.7; Dividend yield: 5.3%; TSINetwork Rating: Average; www.cedarfair.com) owns 11 amusement parks, three outdoor water parks, one indoor water park and five hotels.

In 2013, the partnership earned a record $108.2 million, or $1.94 a unit. That’s up 6.2% from $101.9 million, or $1.81 a unit, in 2012. Revenue rose 6.3%, to a record $1.14 billion from $1.07 billion.

These gains are mainly because guests spent an average of 5.2% more at its parks. Out-of-park revenue (mainly from hotel rooms and food) rose 6.3%. The partnership’s parks and hotels attracted 23.5 million guests in 2013, up 0.9%.
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BUCKEYE PARTNERS L.P. $75 (New York symbol BPL; Income Portfolio, Utilities sector; Units outstanding: 123.2 million; Market cap: $9.2 billion; Price-to-sales ratio: 1.6; Dividend yield: 5.8%; TSINetwork Rating: Average; www.buckeye.com) operates over 9,600 kilometres of pipelines in the northeastern and midwestern U.S. Its network pumps gasoline, jet fuel and other petroleum products. The partnership also owns oil and gas storage terminals.

Buckeye continues to expand by acquisition. In December 2013, it bought 19 oil-storage terminals on the U.S. east coast and one on the Caribbean island of St. Lucia from Hess Corp. (New York symbol HES). It now has over 120 terminals.

These assets cost Buckeye $850 million. To put that in context, it earned $351.6 million in 2013. That’s up 49.1% from $235.9 million in 2012, which included a $60.0- million charge for a pipeline closure. Earnings per unit rose 36.3%, to $3.23 from $2.37, on more units outstanding.
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FORD MOTOR CO. $15 (New York symbol F; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.0 billion; Market cap: $60.0 billion; Price-to-sales ratio: 0.4; Dividend yield: 3.3%; TSINetwork Rating: Extra Risk; www.ford.com) sold 2.5 million vehicles in the U.S. in 2013, up 10.8% from 2.25 million in 2012. Truck sales supplied 38% of the 2013 total and rose 13.0%, followed by cars (34%, up 10.0%) and SUVs (28%, up 9.1%).

Thanks to its improving outlook, Ford recently raised its dividend by 25.0%. The new annual rate of $0.50 a share yields 3.3%. The stock also trades at a low 9.9 times the $1.51 a share that the company will probably earn in 2014.

Ford is a buy....

HONDA MOTOR CO. LTD. ADRs $36 (New York symbol HMC; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.8 billion; Market cap: $64.8 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.honda.com) is Japan’s secondlargest carmaker and the world’s biggest motorcycle manufacturer.

In 2013, the company sold 1.53 million cars and trucks in the U.S., up 7.2% from 1.42 million in 2012. Honda continues to see strong demand for its Civic compact and Accord sedan. As well, it sold over 300,000 of its CR-V sport utility vehicles for the first time in its history.

The company recently launched new motorcycle models in fast-growing markets like India and Indonesia. (Asia accounts for 87% of Honda’s worldwide motorcycle sales.)
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TOYOTA MOTOR CO. ADRs $116 (New York symbol TM; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.6 billion; Market cap: $185.6 billion; Price-to-sales ratio: 0.8; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.toyota.com) is the world’s biggest carmaker by sales. It also makes industrial equipment, such as forklifts and prefabricated housing. Like most automakers, the company offers vehicle loans through its financing division.

In 2013, Toyota sold 2.24 million cars and trucks in the U.S., up 7.4% from 2.08 million in 2012. That’s partly due to strong demand for its hybrid cars, which use gasoline and electricity. The company has sold 6.1 million of these vehicles since it started offering them in 1997.

Toyota now sells 24 hybrid car models and one plug-in version in over 80 countries. Over the next two years, it plans to launch 15 new hybrids, which should help it maintain its leading 50% share of this fastgrowing market.
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HEWLETT-PACKARD CO. $30 (New York symbol HPQ; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.9 billion; Market cap: $57.0 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.9%; TSINetwork Rating: Average; www.hp.com) is starting to benefit from a major restructuring that includes merging its computer and printing divisions and cutting 11% of its workforce.

In its fiscal 2014 first quarter, which ended January 31, 2014, earnings before unusual items rose 8.5%, to $1.7 billion from $1.6 billion a year earlier. Earnings per share rose 9.8%, to $0.90 from $0.82, on fewer shares outstanding.

Revenue in the quarter fell 0.7%, to $28.2 billion from $28.4 billion. Sales of computers rose 4% during the busy Christmas shopping season. However, printer sales fell 2%. Sales of servers and software to businesses also declined.

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MOLSON COORS BREWING CO. $57 (New York symbol TAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 184.2 million; Market cap: $10.5 billion; Price-to-sales ratio: 2.5; Dividend yield: 2.6%; TSINetwork Rating: Average; www.molson coors.com) continues to make progress integrating StarBev LP, which it bought for $3.4 billion in June 2012. StarBev owns nine breweries in central and eastern Europe.

In 2013, Molson Coors’ earnings rose 2.3%, to $727.1 million from $710.5 million in 2012. Due to more shares outstanding, earnings per share gained 1.0%, to $3.95 from $3.91. Sales rose 7.4%, to $4.2 billion from $3.9 billion.

Molson Coors is doing a good job absorbing StarBev, and cutting costs at its existing businesses. In 2013, it lowered its expenses by $113 million.

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PHILIPS ELECTRONICS N.V. ADRs $35 (New York symbol PHG; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 913.3 million; Market cap: $32.0 billion; Priceto- sales ratio: 1.0; Dividend yield: 2.8%; TSINetwork Rating: Average; www.philips.com) gets 41% of its revenue by making health care products, such as X-ray and magnetic resonance imaging (MRI) scanners.

The company also makes lighting (36% of revenue) and consumer electronics, such as appliances and electric shavers (20%). Licensing revenue and other services supply the remaining 3%.

Philips continues to benefit from a major restructuring plan that includes efficiency improvements and cutting 4% of its workforce. The company has also sold its less profitable video and audio products business, which makes TV sets and CD players.
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CANON INC. ADRs $31 (New York symbol CAJ; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.1 billion; Market cap: $34.1 billion; Price-to-sales ratio: 1.0; Dividend yield: 4.5%; TSINetwork Rating: Above Average; www.canon.com) gets 52% of its revenue by making office equipment, mainly printers and copiers.

It also makes consumer products, such as cameras and inkjet printers (38% of revenue), and industrial components, including chips and other parts for TV sets, medical gear and mobile devices (10%).

Demand for printers and other business products is slowly improving with the overall economy. The low Japanese yen also makes Canon’s products cheaper in other countries.
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