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Pat McKeough responds to many requests from members of his Inner Circle for specific advice on 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....

AIMIA INC. (Toronto symbol AIM; www.aimia.com) owns and operates Aeroplan, Canada’s largest loyalty program. It also owns Nectar, the U.K.’s biggest loyalty program. In addition, Aimia has interests in Air Miles Middle East and Nectar Italia, as well as Club Premier, the leading loyalty program in Mexico....

Every Wednesday, we publish our “Investor Toolkit” series. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific advice on investing in the stock market and other investment topics. Each Investor Toolkit update gives you a fundamental piece of our investment strategy, and shows you how you can put it into practice right away. Tip of the week: “You should start investing with a handful of good stocks and add to them steadily, being careful never to dilute your potential gains with too few, or too many, stocks.”...

GENERAL ELECTRIC CO. (New York symbol GE; www.ge.com) continues to shrink its GE Capital subsidiary, which provides loans and other financial services to buyers of its industrial products, such as power-transmission gear, jet engines and locomotives....

ALGONQUIN POWER & UTILITIES CORP. (Toronto symbol AQN; www.algonquinpower.com) has nearly tripled in size over the last year through a series of acquisitions....

Pat McKeough responds to many requests from members of his Inner Circle for specific advice on 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....

Every Wednesday, we publish our “Investor Toolkit” series on TSI Network....

SUN LIFE FINANCIAL (Toronto symbol SLF; www.sunlife.ca) sells savings, retirement, pension and life insurance products to individuals and corporations....

< strong>MCCOY CORP. $6.37 (Toronto symbol MCB; TSINetwork Rating: Speculative) (780-453-8451; www.mccoyglobal.com; Shares outstanding: 26.9 million; Market cap: $171.0 million; Dividend yield: 3.1%) operates through two divisions: Mobile Solutions and Energy Products and Services.
< br /> Energy Products and Services sells hydraulic equipment, including power tongs, for drilling rigs. Power tongs are large wrench-like tools that tighten and loosen the pipe in the drill hole.
< br /> Mobile Solutions builds heavy-duty trailers for U.S. and Canadian clients in the oil and gas, wind energy, infrastructure and construction industries.
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WAJAX CORP. $35.72 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax.ca; Shares outstanding:16.7 million; Market cap: $601.2 million; Dividend yield: 6.7%) sells and services cranes, forklifts and other heavy equipment. It also provides related parts (such as bearings, motors, hoses and fittings) and power systems (including diesel engines and transmissions).
< br /> The company’s customers are in the resource, construction, manufacturing and transportation industries.
< br /> In the three months ended September 30, 2013, Wajax’s revenue declined 5.0%, to $338.5 million from $356.4 million a year earlier. Earnings fell 28.6%, to $11.5 million, or $0.69 a share, from $16.2 million, or $0.97.
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CHEMTRADE LOGISTICS INCOME FUND $17.09 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics.com; Units outstanding: 41.7 million; Market cap: $709.7 million; Dividend yield: 7.0%) is in talks to buy specialty chemicals maker General Chemical Corp. from private equity firm American Securities LLC for as much as $1 billion. American Securities took General Chemical private for $673 million in 2009.
< br /> General Chemical makes a wide range of chemicals. In addition to water treatment and pharmaceuticals, its main markets include oil refining, pulp and paper, agriculture and food and beverage.
< br /> This would be a huge acquisition for Chemtrade, more than doubling its $706.4- million market cap. A major purchase like this can always backfire, but it would likely be a good fit, offering Chemtrade both growth prospects and diversification.
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< strong>TOROMONT INDUSTRIES LTD. $25.47 (Toronto symbol TIH; TSINetwork Rating: Extra Risk) (416-667- 5511; www.toromont.com; Shares outstanding: 76.6 million; Market cap: $2.0 billion; Dividend yield: 2.0%) distributes a wide range of industrial equipment, including machinery made by Caterpillar Inc. It also makes refrigeration systems through its CIMCO division.

In the three months ended September 30, 2013, higher equipment sales and rentals, particularly to mining, construction and agriculture customers, pushed up Toromont’s revenue by 20.0%, to $498.3 million from $415.0 million a year earlier.

Earnings per share rose 32.6%, to $0.57 from $0.43, on the higher sales and improved profit margins.
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< strong>TIM HORTONS $61.81 (Toronto symbol THI; TSINetwork Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 151.0 million; Market cap: $9.1 billion; Dividend yield: 1.7%) is testing a new dark roast blend of its coffee in London, Ontario, and Columbus, Ohio.
< br /> For the past 49 years, the company has had huge success with its medium-roast coffee. However, many of its competitors now offer a variety. For example, Starbucks recently launched a lighter blend that is similar to Tim Hortons’ regular blend.
< br /> If this test is successful, Tim Hortons could start selling the dark roast in all of its 4,300 stores in 2014.
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TEMPUR SEALY $47.05 (New York symbol TPX; TSINetwork Rating: Speculative) (800-878-8889; www.tempursealy.com; Shares outstanding: 60.4 million; Market cap: $2.8 billion; No dividends paid) is the new name of Tempur-Pedic after its March 2013 purchase of rival Sealy Corp. for $1.3 billion.
< br /> In the quarter ended September 30, 2013, Tempur Sealy’s revenue rose 1.5%, to $390.1 million from $384.4 million a year earlier. Sealy’s contribution was the main reason for the rise. Excluding one-time items, earnings per share gained 4.3%, to $0.73 from $0.70. That beat the consensus estimate of $0.69.
< br /> The company’s long-term prospects are sound, and the Sealy purchase is a positive. However, the stock now trades at a somewhat high 20.9 times Tempur Sealy’s forecast 2013 earnings of $2.25 a share. In addition, while the Sealy acquisition should pay off, a major acquisition like this can always come with hidden problems.
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BROADRIDGE FINANCIAL $37.09 (New York symbol BR; TSINetwork Rating: Extra Risk) (201-714-3000; www.broadridge.com; Shares outstanding: 119.0 million; Market cap: $4.4 billion; Dividend yield: 2.3%) earned $48.0 million, or $0.39 a share, in its fiscal 2014 first quarter, which ended September 30, 2013. That’s up 116.0% from $22.0 million, or $0.18 a share, a year earlier.
< br /> Revenue rose 11.0%, to $545.2 million from $495.8 million. Broadridge continues to do a good job of attracting new clients. It also held on to 99% of its existing customers.
< br /> Excluding unusual items, the company expects to earn $2.00 to $2.10 a share in fiscal 2014. The stock trades at a reasonable 18.1 times the midpoint of this range.
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DOREL INDUSTRIES $36.46 (Toronto symbol DII.B; TSINetwork Rating: Extra Risk) (514-731-0000; www.dorel.com; Shares outstanding: 31.5 million; Market cap: $1.2 billion; Dividend yield: 3.4%) makes a range of products, including ready-to-assemble home and office furniture; juvenile products, such as car seats, strollers, high chairs, toddler beds and cribs; and recreational products, mainly bicycles.
< br /> In the three months ended September 30, 2013, Dorel’s sales fell 1.0%, to $607.3 million from $613.3 million a year earlier (all figures except share price and market cap in U.S. dollars). Slower sales in the juvenile products segment offset gains at the home furnishing division and the recreational and leisure business.
< br /> Excluding one-time items, earnings per share were unchanged at $0.64.
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FAIR ISAAC CORP. $57.71 (New York symbol FICO; TSINetwork Rating: Average) (415- 472-2211; www.fairisaac.com; Shares outstanding: 35.2 million; Market cap: $2.0 billion; Dividend yield: 0.1%) reports that its earnings per share before one-time items rose 16.7% in the three months ended September 30, 2013, to $0.98 from $0.84 a year ago.
< br /> Revenue gained 2.3%, to $190.3 million from $186.1 million. That’s largely due to acquisitions, which contributed $23 million to the company’s revenue in the latest quarter. Due to the uncertain economy, Fair Isaac has had trouble closing deals with several North American banks. It aims to complete these sales in the next few months.
< br /> The company continues to spend around 9% of its revenue on research. That lets it keep producing innovative products that help it stay ahead of the competition.
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< strong>DELPHI ENERGY $1.43 (Toronto symbol DEE; TSINetwork Rating: Speculative) (403-265-6171; www.delphienergy.ca; Shares outstanding: 153.1 million; Market cap: $217.4 million; No dividends paid) develops, produces and explores for oil and natural gas. About 74% of its production is gas. The remaining 26% is oil.
< br /> The company’s output rose 6.5% in the three months ended September 30, 2013, to 8,797 barrels of oil equivalent per day (including gas) from 8,257 barrels a year earlier.
< br /> Cash flow per share gained 16.7%, to $0.07 from $0.06. The higher production was the main reason for the increase. The company also realized higher prices for its oil and gas in the latest quarter.
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BIRCHCLIFF ENERGY $7.27 (Toronto symbol BIR; TSINetwork Rating: Speculative) (403-261-6401; www.birchcliffenergy.com; Units outstanding: 142.8 million; Market cap: $1.1 billion; No dividends paid) develops, produces and explores for oil and natural gas, mainly in the Peace River Arch area near the Alberta/B.C. border. About 81% of its output is gas. The remaining 19% is oil.
< br /> In the three months ended September 30, 2013, Birchcliff’s production rose 15.1%, to 24,662 barrels of oil equivalent per day (including gas) from 21,426 barrels a year earlier. Cash flow per share gained 50.0%, to $0.30 from $0.20, on the increased production and higher oil and gas prices.
< br /> Last year, Birchcliff completed Phase III of its gas plant expansion in Pouce Coupe, Alberta. This project doubled the facility’s capacity and is helping the company bring the additional gas it is producing to market.
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ACI WORLDWIDE $62.74 (Nasdaq symbol ACIW; TSINetwork Rating: Speculative) (402- 334-5101; www.tsainc.com; Shares outstanding: 39.5 million; Market cap: $2.4 billion; No dividends paid) makes software that processes transactions involving credit cards, debit cards, ATMs, point-of-sale terminals and interbank payments. Its products also help cut fraud.
< br /> In the quarter ended September 30, 2013, acquisitions increased ACI’s revenue by 38.0%, to $213.9 million from $155.1 million a year earlier. Earnings per share rose 79.3%, to $0.52 from $0.29. Cost cuts and the higher revenue were behind the rise.
< br /> The company’s outlook is positive, but the stock trades at a high 22.4 times ACI’s forecast 2014 earnings of $2.80 a share. Moreover, any problems with integrating its recent acquisitions could significantly cut into 2014 earnings.
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< strong>RUBY TUESDAY, INC. $6.58 (New York symbol RT; TSINetwork Rating: Speculative) (865-379-5700; www.rubytuesday.com; Shares outstanding: 61.4 million; Market cap: $405.1 million; No dividends paid) owns 703 casual dining restaurants in the U.S. Franchisees operate 33 outlets in the U.S. and 42 overseas.
< br /> In the three months ended September 3, 2013, Ruby Tuesday’s sales fell 11.7%, to $289.7 million from $327.9 million a year earlier. Continued weak consumer spending was the main reason for the decline. As well, the company closed less profitable restaurants in the quarter, and competition remains intense in the casual-dining business.
< br /> Ruby Tuesday lost $21.9 million, or $0.36 a share, compared to a year-earlier profit of $3.1 million, or $0.22 a share. That widely missed the consensus estimate of a $0.05-a-share loss, although the latest quarter included a $7.5-million pre-tax charge for closing underperforming locations.
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CHIPOTLE MEXICAN GRILL $531.66 (New York symbol CMG; TSINetwork Rating: Speculative) (303-595-4000; www.chipotle.com; Shares outstanding: 30.9 million; Market cap: $16.7 billion; No dividends paid) is a Denver- based Mexican restaurant chain. It charges slightly higher prices than fast food companies, but it offers better quality food, including naturally raised meat, and superior decor and service.
< br /> In the three months ended September 30, 2013, Chipotle’s sales gained 18.0%, to $826.9 million from $700.5 million a year earlier. The company’s restaurants attracted more customers during the quarter, which pushed up same-restaurant sales by 4.3%. Chipotle also opened 37 new outlets, and now has a total of 1,539. In 2014, it aims to open 180 to 195 more.
< br /> Earnings rose 15.3%, to $83.4 million from $72.3 million. Per-share earnings increased 18.4%, to $2.70 from $2.28, on fewer shares outstanding.
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HECLA MINING $2.98 (New York symbol HL; TSINetwork Rating: Extra Risk) (208-769- 4100; www.hecla-mining.com; Shares outstanding: 342.6 million; Market cap: $1.0 billion) explores for, mines and processes silver and gold in the U.S. and Mexico.
< br /> Most of the company’s silver output comes from its Greens Creek mine in Alaska and its Lucky Friday project in Idaho. Its gold production mainly comes from its newly acquired Casa Berardi mine in Quebec.
< br /> All of Hecla’s mines have potential for higher production, including Casa Berardi, where the company is deepening the mine shaft to boost output and extend the project’s life. However, Hecla is cutting back on capital spending while it waits for higher gold and silver prices.
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< strong>IMPERIAL METALS $14.25 (Toronto symbol III; TSINetwork Rating: Speculative) (604-669-8959; www.imperialmetals.com; Shares outstanding: 74.5 million; Market cap: $1.1 billion) is a Vancouver-based firm that produces and explores for base and precious metals.
< br /> Imperial’s producing assets include two B.C. mines: 100%-owned Mount Polley (copper and gold) and 50% of Huckleberry (copper and molybdenum). Japan’s Mitsubishi Materials holds 31.1% of Huckleberry, and Furukawa Co., Dowa Holdings and Marubeni Corp. own 6.3% each.
< br /> Imperial restarted Mount Polley in 2005. It continues to explore around the known deposit to increase the mine’s reserves and lengthen its life. Right now, Imperial expects Mount Polley to produce until mid- 2023.
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YAMANA GOLD $9.46 (Toronto symbol YRI; TSINetwork Rating: Speculative) (416-815-0220; www.- yamana.com; Shares outstanding: 752.9 million; Market cap: $7.3 billion; Dividend yield: 2.9%) owns eight operating gold mines in Mexico, Brazil, Chile and Argentina. It also holds a 12.5% stake in the Alumbrera copper/gold mine in Argentina, and has a number of other properties in advanced stages of development.
< br /> In the three months ended September 30, 2013, Yamana’s revenue fell 25.4%, to $456.7 million from $611.8 million a year earlier (all figures except share price and market cap in U.S. dollars).
< br /> Gold production declined 1.1%, to 306,935 ounces from 310,490. Prices for gold, and for copper and silver, also fell. Both copper and silver are significant byproducts of Yamana’s gold mining. The company’s cash flow per share fell 36.9% in the latest quarter, to $0.24 from $0.38.
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