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IAMGOLD $3.55 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464-9999; www.iamgold.com; Shares outstanding: 376.6 million; Market cap: $1.4 billion; No dividends paid) is suspending its dividend payments to conserve cash while it waits for gold prices to rebound. The move follows similar cuts by other gold miners.

Gold has dropped over 30%, from its high near $1,800 U.S. an ounce in September 2012 to $1,232 today.

IAMGold is still a buy for exposure to a rebound in gold prices....

CHEMTRADE LOGISTICS INCOME FUND $18.94 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics.com; Units outstanding: 41.7 million; Market cap: $777.2 million; Dividend yield: 6.3%) has confirmed that it has agreed to buy specialty chemicals maker General Chemical Corp. for $860 million.

This is a huge acquisition for Chemtrade: it will more than double its $777.2-million market cap. A major purchase like this can always backfire, but it will likely be a good fit, offering Chemtrade both growth prospects and diversification.

As well, Chemtrade estimates that General will add 17% to its cash flow per unit. That will let the fund maintain its dividend, which gives its units a high 6.3% yield.
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AMAZON.COM $395.96 (Nasdaq symbol AMZN; TSINetwork Rating: Extra Risk) (206-266-1000; www.amazon.com; Shares outstanding: 457.7 million; Market cap: $177.4 billion; No dividends paid) has expanded its AmazonFresh same-day grocery delivery service to San Francisco. The move follows the launch of the service in Los Angeles in June 2013. AmazonFresh has also been available in the company’s hometown of Seattle for some time.

AmazonFresh promises same-day or early morning delivery of over 500,000 items, including groceries and food from specialty shops. Delivery is free on all orders over $35 if the customer pays a yearly $299 subscription fee. The fee also includes the benefits of Amazon’s Prime service, such as free two-day shipping on most of the other products sold on Amazon.com.

AmazonFresh may help the company achieve its goal of same-day delivery of all its products. In addition to groceries, AmazonFresh trucks will deliver a range of toys, electronics and household goods. Eventually, these trucks could let the company ship to customers directly and do away with the services of UPS or FedEx in many markets. The trucks could also let Amazon pick up returns from customers, again cutting out the courier companies and speeding up service.
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MAJOR DRILLING $7.02 (Toronto symbol MDI; TSINetwork Rating: Speculative) (1-866- 264-3986; www.majordrilling.com; Shares outstanding: 79.2 million; Market cap: $557.3 million; Dividend yield: 2.9%) is a large contract-drilling firm that mainly serves the mining industry.

In the three months ended October 31, 2013, Major’s revenue fell 53.8%, to $92.3 million from $199.6 million a year earlier. Earnings also declined sharply, to a loss of $19.1 million, or $0.24 a share, from a profit of $22.3 million, or $0.28.

The latest earnings included $18.3 million of one-time charges, including a $12.1- million writedown of the company’s Chilean operations. Major has cut its staff by 45%, or 2,300 workers, in the past year.
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GOODYEAR TIRE & RUBBER CO. $22.59 (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (330-796-2122; www.goodyear.com; Shares outstanding: 246.9 million; Market cap: $5.6 billion; Dividend yield: 0.9%) is the world’s largest tire maker, with 52 plants in 22 countries.

In the quarter ended September 30, 2013, the weak global economy lowered Goodyear’s sales by 5.0%, to $5.0 billion from $5.3 billion a year earlier.

North American sales fell 9.1%, to $2.2 billion from $2.4 billion. As well, sales declined by 9.2% in Asia. That offset a slight increase in Europe, the Middle East and Africa, and a 1.3% rise in Latin America. Earnings per share climbed sharply, to $0.68 from $0.45. That was higher than the consensus estimate of $0.67. The higher profits came from the company’s North American operations, which sold more replacement tires (they’re more profitable than new car tires) and successfully cut its costs.
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ATLANTIC TELE-NETWORK $54.99 (Nasdaq symbol ATNI; TSINetwork Rating: Speculative) (340- 777-8000; www.atni.com; Shares outstanding: 15.8 million; Market cap: $867.3 million; Yield: 2.0%) has closed the sale of its Alltel wireless business to AT&T (symbol T on New York). Atlantic now holds cash of $594.3 million, or $37.61 a share. It has also paid off all of its debt.

Atlantic bought Alltel from Verizon Wireless for just $223 million in April 2010.

In the three months ended September 30, 2013, Atlantic’s revenue rose 8.2%, to $79.4 million from $73.2 million a year earlier. Excluding the gain on the Alltel sale, earnings fell sharply, to $1.6 million, or $0.10 a share, from $7.4 million, or $0.47.
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CHIPOTLE MEXICAN GRILL $516.89 (New York symbol CMG; TSINetwork Rating: Speculative) (303-595-4000; www.chipotle.com; Shares outstanding: 30.9 million; Market cap: $15.9 billion; No dividends paid) is launching its new catering service across the U.S. The move follows successful test marketing in certain markets, including Colorado.

Chipotle’s catering includes four different meal options to feed between six and 200 people. The meals offer its trademark highquality food, including naturally raised meat.

Customers will pick up the catering orders themselves, which means the company won’t have to hire delivery personnel.
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TIM HORTONS $62.68 (Toronto symbol THI; TSINetwork Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 147.1 million; Market cap: $9.1 billion; Dividend yield: 1.7%) operates 3,500 coffeeand- donut shops in Canada, 817 in the U.S. and 33 in the Persian Gulf.

In the three months ended September 30, 2013, Tim Hortons’ sales rose 2.9%, to $825.4 million from $802.0 million a year earlier. Same-store sales gained 1.7% at its Canadian outlets and 3.0% in the U.S. Earnings per share rose 6.9%, to $0.77 from $0.72.

The company continues to benefit from recently introduced menu items, such as panini sandwiches. It also raised its prices to cover higher ingredient costs. At the same time, it’s working on simplifying its menu displays and speeding up service, both in-store and at the drive-through.
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DOMINO’S PIZZA $69.96 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3030; www.dominos.com; Shares outstanding: 55.7 million; Market cap: $3.9 billion; Dividend yield: 1.1%) is the world’s largest chain of pizza stores that offer takeout and delivery. It operates 10,500 outlets in the U.S. and over 70 other countries. Franchisees run most of these stores.

The company’s earnings per share rose 18.6% in the quarter ended September 8, 2013, to $0.51 from $0.43 a year earlier. The latest figure fell just short of the consensus estimate of $0.52. Sales gained 6.9%, to $404.1 million from $378.1 million. That beat the consensus estimate of $403.0 million. Same-store sales rose 5.0% internationally and 5.4% in the U.S.

Domino’s continues to boost its sales by aggressively promoting its new pizza recipes. It’s also profiting by moving into ordering online and through software applications, or apps, on smartphones. In addition, it still has lots of growth potential overseas.
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AEROPOSTALE $8.14 (New York symbol ARO; TSINetwork Rating: Extra Risk) (646- 485-5410; www.aeropostale.com; Shares outstanding: 78.5 million; Market cap: $639.7 million; No dividends paid) has adopted a shareholder rights plan. These schemes are often called poison pills, because they aim to thwart hostile takeovers by issuing many new shares to existing shareholders if someone tries to take over a company.

A number of private equity firms now hold interests in Aeropostale, and they are pushing it to put itself up for sale so one or more of them can take it private.

It’s uncertain which direction Aeropostale will take, or whether any of its private equity shareholders can force a sale. However, their involvement does highlight its underlying value and turnaround potential.
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CARFINCO FINANCIAL GROUP $12.07 (Toronto symbol CFN; TSINetwork Rating: Speculative) (1-888- 486-4356; www.carfinco.com; Shares outstanding: 26.5 million; Market cap: $321.6 million; Dividend yield: 4.0%) provides car loans to consumers who can’t meet the criteria of traditional lenders, like banks.

In September 2013, Carfinco expanded into the U.S. through its $9.5-million purchase of Persian Acceptance Corp., an automotive lender that also caters to less-affluent borrowers. The acquisition boosted Carfinco’s loans outstanding by about 22%.

In the three months ended September 30, 2013, Carfinco’s revenue rose 17.7%, to $21.4 million from $18.2 million a year earlier. The company loaned a record $46.5 million in the latest quarter, up 9.2% from $42.6 million.
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INTACT FINANCIAL CORP. $68.29 (Toronto symbol IFC; TSINetwork Rating: Speculative) (416-341- 1464; www.intactfc.com; Shares outstanding: 131.5 million; Market cap: $9.0 billion; Dividend yield: 2.6%) is Canada’s largest provider of property and casualty insurance, based on premiums. Its brands include Intact Insurance, Canada BrokerLink, belairdirect and Grey Power.

In the three months ended September 30, 2013, Intact’s revenue rose 5.7%, to $1.9 billion from $1.8 billion a year earlier. The company earned $0.39 a share, down sharply from $0.90.

However, the latest results include a one-time loss of $1.52 a share related to the Lac-Mégantic rail tragedy and major rain and hail storms in Quebec, Ontario and Alberta. One-time losses amounted to $1.02 a share a year ago.
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PASON SYSTEMS $22.28 (Toronto symbol PSI; TSINetwork Rating: Speculative) (403- 301-3400; www.pason.com; Shares outstanding: 82.1 million; Market cap: $1.8 billion; Dividend yield: 2.5%) rents equipment for monitoring and managing land-based oil and gas rigs throughout Canada, the U.S., Mexico and Argentina. It also provides communication systems to remotely collect data from drilling operations.

In the quarter ended September 30, 2013, Pason’s revenue rose 8.1%, to $104.0 million from $96.3 million a year earlier. Strong international sales and slightly higher revenue in Canada offset slower activity in the U.S. Cash flow per share jumped 51.1%, to $0.68 from $0.45.

Pason holds cash of $198.1 million, or $2.41 a share, and has no debt.
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CIMAREX ENERGY $99.54 (New York symbol XEC; TSINetwork Rating: Extra Risk) (303-295-3995; www.cimarex.com; Shares outstanding: 86.9 million; Market cap: $8.7 billion; Dividend yield: 0.6%) produces and explores for natural gas and oil. Gas makes up 48% of its output.

Cimarex’s properties are in the Mid-Continent region of the U.S., which includes Oklahoma, Kansas and Texas (47% of production); the Permian Basin of western Texas and southeastern New Mexico (49%); and the Texas Gulf Coast (4%).

In the three months ended September 30, 2013, Cimarex’s production averaged 716.8 million cubic feet of natural gas equivalent per day (including oil). That’s up 12.8% from 635.1 million cubic feet a year earlier.
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DEVON ENERGY CORP. $59.34 (New York symbol DVN; TSINetwork Rating: Speculative) (405-235- 3611; www.dvn.com; Shares outstanding: 406.0 million; Market cap: $24.2 billion; Dividend yield: 1.5%) is one of the largest U.S.-based oil and natural gas explorers and producers. Its production mix is 57% gas and 43% oil.

In 2011, Devon sold all of its international and Gulf of Mexico properties, which it saw as risky and expensive to develop. The company is now focused on its North American projects, which include conventional production, shale oil in Texas and oil sands in Alberta.

To further increase its North American output, Devon recently agreed to pay GeoSouthern Energy $6 billion for oil-producing assets and other properties in Texas’s Eagle Ford shale formation.
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DUNDEE REIT $28.18 (Toronto symbol D.UN; TSINetwork Rating: Extra Risk) (416-365-3535; www.dundeereit.com; Units outstanding: 104.9 million; Market cap: $3.0 billion; Dividend yield: 8.0%) owns and manages 24.3 million square feet of office and retail space across Canada.

As the Canadian economy improves, interest rates will likely rise. That increase—or the anticipation of it—can push down prices of REITs and high-yielding stocks, such as utilities. That’s largely why a number of REITs, including Dundee, have declined.

When interest rates rise, REITs may suffer because they have a lot of mortgage debt, and it’s more expensive to raise money and refinance existing loans. As well, their units, which typically offer high yields, compete with fixed-income instruments for investor interest.
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TELUS CORP. $37 (www.telus.com) continues to benefit from heavy investments in wireless networks. Thanks to rising demand for smartphones and wireless data, earnings in the third quarter of 2013 rose 18.4%, to $0.58 from $0.49. Telus also increased its dividend by 5.9%....

EMERA INC. $30 (www.emera.com) earned $0.29 a share before unusual items in the three months ended September 30, 2013, down 17.1% from $0.35 a year earlier. That’s mainly due to higher income taxes and maintenance costs at its main Nova Scotia Power subsidiary....

THOMSON REUTERS CORP. $40 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 827.2 million; Market cap: $33.1 billion; Price-to-sales ratio: 2.5; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.thomsonreuters.com) gets 55% of its revenue by selling news and information to professionals in the banking industry. The remaining 45% comes from providing specialized information products to clients in the legal, accounting and scientific research fields.




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TIM HORTONS INC. $63 (Toronto symbol THI; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 148.9 million; Market cap: $9.4 billion; Price-to-sales ratio: 3.0; Dividend yield: 1.7%; TSINetwork Rating: Average; www.timhortons.com) continues to draw customers to its coffee-and-donut shops with successful new menu items, such as panini sandwiches. It has also raised its prices to cover higher ingredient costs.

As a result, sales rose 2.9% in the third quarter of 2013, to $825.4 million from $802.0 million a year earlier. Same-store sales rose 1.7% in Canada (3,500 stores) and 3.0% in the U.S. (817 stores). Tim Hortons also has 33 outlets in the Persian Gulf and plans to enter more countries in the next few years.

If you exclude a writedown and other unusual items, earnings per share rose 6.9%, to $0.77 from $0.72.
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BANK OF NOVA SCOTIA $65 (Toronto symbol BNS; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.2 billion; Market cap: $78.0 billion; Price-to-sales ratio: 3.7; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.scotiabank.com) is changing the name of its ING Direct subsidiary to Tangerine. That will let this business keep using the orange colour associated with the ING Direct brand.

ING Direct offers a variety of no-fee banking services, mainly over the Internet. It has over 1.8 million customers and $40 billion in deposits.

Bank of Nova Scotia bought ING Direct from its Netherlands-based parent, ING Group, for $3.1 billion in November 2012. The deal let it keep using the ING Direct name until May 2014.
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CAE INC. $12 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 261.4 million; Market cap: $3.1 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.0%; TSINetwork Rating: Average; www.cae.com) has sold four flight simulators and related services to Indonesia’s Lion Air Group. It also sold two additional simulators to unnamed customers.

The company has now sold 33 simulators in its 2014 fiscal year, which began April 1, 2013. To put that in context, it sold 35 simulators in all of fiscal 2013.

The total value of the latest sales—$90 million —is equal to 4% of CAE’s annual revenue of $2.2 billion.
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TORONTO-DOMINION BANK $97 (Toronto symbol TD; Conservative Growth Portfolio, Finance sector; Shares outstanding: 918.4 million; Market cap: $89.1 billion; Price-to-sales ratio: 3.7; Dividend yield: 3.5%; TSINetwork Rating: Above Average; www.td.com) owns 42.24% of TD Ameritrade Holding Corp. (Nasdaq symbol AMTD), one of the largest online brokerage firms in the U.S.

Ameritrade will contribute $77 million to TD’s earnings in its 2013 fourth quarter, which ended October 31, 2013. That’s up 51.0% from $51 million a year earlier. To put these figures in perspective, TD earned $1.6 billion, or $1.65 a share, in its third quarter, which ended July 31, 2013.

Uncertainty over the U.S. government shutdown caused Ameritrade’s average number of trades per day to rise 16.3% from a year earlier. At the same time, Ameritrade continues to attract new clients: it opened 50,000 accounts in the latest quarter, up from 28,000 a year earlier.
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HOME CAPITAL GROUP INC. $79 (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 34.7 million; Market cap; $2.7 billion; Price-to-sales ratio: 2.2; Dividend yield: 1.4%; TSINetwork Rating: Average; www. homecapital.com) specializes in loans to borrowers who don’t meet the stricter standards of larger, traditional lenders, like banks.

Low interest rates continue to fuel mortgage demand. As a result, the company’s earnings rose 15.2% in the third quarter of 2013, to $1.90 a share from $1.65 a year earlier. Revenue gained 5.7%, to $239.4 million from $226.6 million. Moreover, bad loans were just 0.32% of the company’s total loans, down from 0.33%.

Home Capital Group is a buy.

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IGM FINANCIAL INC. $55 (Toronto symbol IGM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 252.1 million; Market cap: $13.9 billion; Price-to-sales ratio: 5.4; Dividend yield: 3.9%; TSINetwork Rating: Above Average; www. igmfinancial.com) is Canada’s largest independent mutual fund company. Power Financial owns 58.7% of IGM.

Rising stock prices continue to spur mutual fund sales and the value of its clients’ holdings. As of September 30, 2013, IGM had $126.0 billion of assets under management, up 5.6% from $119.3 billion a year earlier. The company’s fee income rises and falls with the value of the securities it manages, so its revenue and earnings gain when the price of these assets rises.

In the third quarter of 2013, earnings rose 3.8%, to $193.4 million from $186.2 million a year earlier. Per-share earnings rose 5.5%, to $0.77 from $0.73, on fewer shares outstanding. Revenue increased 5.3%, to $667.5 million from $634.1 million.
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