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WYNDHAM WORLDWIDE $62.75 (New York symbol WYN; TSINetwork Rating: Extra Risk) (973- 753-6000; www.wyndhamworldwide.com; Shares outstanding: 133.0 million; Market cap: $8.3 billion; Dividend yield: 1.9%) is one of the world’s largest hospitality companies, with 7,410 franchised hotels worldwide.

In addition to hotels, Wyndham manages vacation resorts, rental properties, luxury clubs and time-shares. The company now has over 106,000 vacation rental properties in 100 countries.

In the three months ended June 30, 2013, Wyndham’s revenue rose 10.0%, to $1.25 billion from $1.14 billion a year earlier. The company gets most of its revenue from vacation rather than business travel, and vacation bookings rose in the latest quarter. That helped push up its occupancy rate by 1.5%.
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SASOL LTD. (ADR) $50.56 (New York symbol SSL; TSINetwork Rating: Extra Risk) (082- 883-9697; www.sasol.com; ADRs outstanding: 649.2 million; Market cap: $34.4 billion; Dividend yield: 5.3%) has developed a technology to convert coal and natural gas into motor fuels and is now the world’s largest producer of fuel from coal at its facility in Secunda, South Africa.

In the year ended June 30, 2013, Sasol’s revenue rose 9.7%, to 146.8 billion South African rand (1 rand = $0.10 U.S.) from 133.8 billion rand the previous year. Earnings per ADR rose 24.5%, to 52.62 rand from 42.28 rand. The U.S. dollar rose against the rand, which pushed up the value of Sasol’s sales outside South Africa.

Sasol is considering spending up to $21 billion U.S. to build a complex in Louisiana that would turn natural gas into chemicals, diesel and other fuels.
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GOODYEAR TIRE & RUBBER CO. $22.44 (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (330-796-2122; www.goodyear.com; Shares outstanding: 246.0 million; Market cap: $5.5 billion; Dividend yield: 0.9%) will resume paying dividends with a quarterly payment of $0.05 a share in December 2013. That gives the stock a 0.9% yield, based on today’s price. The company last paid a dividend in December 2002.

The tire maker has also announced a $100-million share buyback plan, which it will mainly use to offset any potential share dilution caused by equity compensation programs for its employees.

The company is selling more tires in emerging markets in Latin America and Asia, while cost cuts and falling rubber prices are helping boost its profits.
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FIRSTSERVICE CORP. $41.59 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 31.9 million; Market cap: $1.4 billion; Dividend yield: 1.0%) is selling its 300- employee Field Asset Services subsidiary to Assurant Inc. for $55 million. This business specializes in preserving the value of foreclosed and abandoned homes by performing ongoing services, such as inspections, interior and exterior maintenance, trash removal, lawn maintenance and winterization.

FirstService bought Field Asset Services in 2007, and the business benefited from the housing crisis in the U.S., which saw many properties foreclosed and abandoned.

The sale is timely for FirstService, because increased U.S. government regulations are slowing the rate at which banks and other mortgage providers can foreclose on homeowners who are behind on their payments. Housing markets are also slowly recovering. As a result, there have been fewer newly foreclosed houses for Field Asset Services to manage.
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THE CHURCHILL CORP. $8.87 (Toronto symbol CUQ; TSINetwork Rating: Speculative) (780-454-3667; www.churchillcorporation.com; Shares outstanding: 24.7 million; Market cap: $218.7 million; Dividend yield: 5.4%) provides building construction, commercial and industrial electrical contracting, earthmoving and industrial insulation services to government and private sector clients, mainly in Western Canada.

Churchill’s Stuart Olson Dominion Construction division has just won $400 million worth of contracts. These projects involve building municipal, commercial and industrial buildings, as well as arenas, schools and hospitals.

To put these agreements in perspective, Churchill’s total backlog stood at a near record $1.8 billion on June 30, 2013.
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NISSAN MOTOR (ADR) $20.51 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111; www.nissan-global.com; Shares outstanding: 2.3 billion; Market cap: $45.7 billion; No dividends paid) has reported lower U.S. sales for the month of September, along with most other automakers. However, this September was unique because it had fewer selling days than the prior year.

Overall, Nissan sold 86,868 cars and trucks in the U.S. during the month. That’s down 5.5% from 91,907 in September 2012. The Nissan division’s sales fell 5.6%, to 77,828 vehicles. Infiniti sales dropped 4.3%, to 9,040 vehicles.

Like all automakers, Nissan needs a renewed global economic recovery to boost its sales. Meanwhile, its outlook is positive.
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RUSSEL METALS $26.72 (Toronto symbol RUS; TSINetwork Rating: Speculative) (905-819-7777; www.russelmetals.com; Shares outstanding: 60.9 million; Market cap: $1.6 billion; Dividend yield: 5.2%) is one of North America’s largest metal distributors. It serves 39,000 clients at 54 locations in Canada and 12 in the U.S.

In the quarter ended June 30, 2013, revenue rose 5.5%, to $758.1 million from $718.7 million a year earlier. Revenue at the company’s metal-services business declined 13%. That’s because the slower economy pushed down steel demand.

However, the energy tubular products division, which supplies pipes for oil and gas exploration and development, saw its revenue jump 63% on higher drilling activity.
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CHEMTRADE LOGISTICS INCOME FUND $16.95 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics- .com; Units outstanding: 41.7 million; Market cap: $706.4 million; Dividend yield: 7.1%) is one of North America’s largest providers of removal services for resource firms, such as oil refineries and base-metal processors. These companies create sulphur, acid and other by-products as part of their activities. Chemtrade converts these substances into useful chemicals, like sulphuric acid.

Chemtrade’s Marsulex subsidiary provides a range of environmental services, including improving air quality and treating and handling industrial waste.

In the three months ended June 30, 2013, Chemtrade’s revenue fell 4.4%, to $217.5 million from $227.6 million a year earlier. The decline mostly reflects lower prices for sulphur on international markets. However, cash flow per unit was unchanged at $0.73.
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AEROPOSTALE $8.99 (New York symbol ARO; TSINetwork Rating: Extra Risk) (646- 485-5410; www.aeropostale.com; Shares outstanding: 78.5 million; Market cap: $705.6 million; No dividends paid) is now 8% owned by New-York based private equity firm Sycamore Partners.

Earlier this year, Sycamore Partners paid $600 million for Hot Topic, a U.S. teen retailer with over 800 mall-based stores; in early 2012, it bought Talbots, a struggling women’s wear chain, for about $400 million.

It’s far from certain that Sycamore Partners will buy Aeropostale, and the firm has a reputation for not paying a big premium above current market prices. However, Sycamore’s involvement does highlight Aeropostale’s underlying value and turnaround potential.
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BMTC GROUP $13.20 (Toronto symbol GBT.A; TSINetwork Rating: Extra Risk) (514-648-5757; No website; Shares outstanding: 47.5 million; Market cap: $601.3 million; Dividend yield: 1.8%) is one of Quebec’s biggest retailers of furniture, electronics and appliances, with 33 stores. It mainly sells these products through its two affiliates: Brault & Martineau and Ameublements Tanguay.

In March 2012, BMTC introduced a new banner, EconoMax, which offers lower-priced products. The company rebranded four outlets that had operated as Brault & Martineau liquidation centres. It has opened one new EconoMax so far this year and plans to open three more by the end of 2013.

In the three months ended June 30, 2013, BMTC’s sales fell 2.4%, to $181.4 million from $185.8 million a year earlier. Earnings per share were $0.29 in the latest quarter, unchanged from a year ago.
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REITMANS (CANADA) LTD. $6.90 (Toronto symbol RET.A; TSINetwork Rating: Extra Risk) (514-384- 1140; www.reitmans.com; Shares outstanding: 64.6 million; Market cap: $446.6 million; Dividend yield: 11.6%) owns 900 women’s clothing stores across Canada.

The chain consists of 357 Reitmans, 141 Smart Set, 153 Penningtons, 103 Addition Elle, 72 Thyme Maternity and 74 RW & Co. stores. It also has 21 Thyme Maternity boutiques in some Canadian Babies “R” Us locations, as well as 158 in U.S. Babies “R” Us stores.

In the three months ended August 3, 2013, Reitmans’ sales fell 9.3%, to $253.4 million from $279.5 million a year earlier. Same-store sales declined 6.8%.
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MAJOR DRILLING $7.38 (Toronto symbol MDI; TSINetwork Rating: Speculative) (1-866- 264-3986; www.majordrilling.com; Shares outstanding: 79.2 million; Market cap: $584.2 million; Dividend yield: 2.7%) is a large contract-drilling firm that mainly serves the mining industry.

In the quarter ended July 31, 2013, Major’s revenue fell 54.4%, to $108.2 million from a record $237.6 million a year ago. Earnings also fell sharply, to $1.5 million, or $0.02 a share, from $31.9 million, or $0.40.

The latest earnings included $2.0 million of one-time restructuring charges, including layoff-related costs. Major has cut its staff by 45%, or 2,300 workers, in the past year.
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NEW GOLD $5.78 (Toronto symbol NGD; TSINetwork Rating: Speculative) (888-315-9715; www.newgold- .com; Shares outstanding: 502.5 million; Market cap: $2.9 billion; No dividends paid) has four operating mines: the Mesquite mine in the U.S., the Cerro San Pedro mine in Mexico, the Peak mine in Australia and the just-completed New Afton mine in B.C. It also owns 30% of the El Morro copper/gold project in Chile and 100% of the Blackwater mine in B.C.

In the quarter ended June 30, 2013, New Gold’s cash flow fell 10.0%, to $0.09 a share from $0.10 a year earlier. Lower gold prices offset new production from New Afton, which started up in late 2012.

New Gold’s $855.5 million of long-term debt is a moderate 28.5% of its market cap. It also holds cash of $562.5 million, or $1.12 a share.
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IAMGOLD $4.59 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464-9999; www.iamgold- .com; Shares outstanding: 376.6 million; Market cap: $1.7 billion; Dividend yield: 5.5%) owns 38% of the Sadiola mine and 40% of the Yatela mine, both located in Mali; 90% of its new Essakane gold mine in Burkina Faso; 100% of the Doyon mine in Quebec; and 95% of the Rosebel mine in Suriname, South America.

In addition, IAMGold has a 1% royalty interest in the Diavik diamond mine in the Northwest Territories. It also owns the Niobec niobium mine in Quebec. When used as an additive, niobium makes steel stronger, more heat-resistant and easier to weld.

In the three months ended June 30, 2013, IAMGold’s revenue fell 17.4%, to $301.1 million from $364.5 million a year earlier. Cash flow per share fell 10.0%, to $0.18 from $0.20. The declines were mostly due to lower gold prices, partly offset by a 10% production increase.
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FAIR ISAAC CORP. $54.97 (New York symbol FICO; TSINetwork Rating: Average) (415- 472-2211; www.fairisaac.com; Shares outstanding: 35.2 million; Market cap: $1.9 billion; Dividend yield: 0.2%) will now sell its Falcon Fraud Manager payment-security system in Brazil through partner Total System Services (symbol TSS on New York).

Total has offered the Falcon software to its clients in other countries since 1998.

Total Systems manages several of Brazil’s most popular credit cards. The partners will initially protect nearly 1.8 million cardholders in the country with Falcon Fraud Manager.
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ACI WORLDWIDE $54.45 (Nasdaq symbol ACIW; TSINetwork Rating: Speculative) (402-334-5101; www.tsainc.com; Shares outstanding: 39.5 million; Market cap: $2.2 billion; No dividends paid) makes software for processing transactions involving credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank payments. Its products also help cut fraud.

In the quarter ended June 30, 2013, ACI’s revenue rose 30.0%, to $208.0 million from $160.0 million a year earlier. That’s mainly due to the contribution from Online Resources Corp., which ACI bought for $126.6 million early this year. The purchase has helped ACI further expand into online banking and bill payments.

Without one-time items, earnings per share dropped to $0.14 from $0.16. The decline was largely due to the cost of integrating acquisitions.
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AASTRA TECHNOLOGIES $20.78 (Toronto symbol AAH; TSINetwork Rating: Speculative) (905-760- 4200; www.aastra.com; Shares outstanding: 11.8 million; Market cap: $245.1 million; Dividend yield: 3.9%) develops and markets products and systems for accessing communication networks, including the Internet. Its technology is centred around business telephone systems and includes products that integrate land lines and mobile phones.

In the three months ended June 30, 2013, Aastra’s sales rose 2.5%, to $150.8 million from $147.1 million a year earlier, as the company’s key markets in Germany and France improved significantly. Earnings per share jumped to $0.21 from $0.13.

Aastra holds cash of $132.5 million, or a high $11.42 a share, and has no long-term debt. It spends a high 11% of its revenue on research.
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AIMIA INC. $18.30 (Toronto symbol AIM; TSINetwork Rating: Extra Risk) (514-205-7315; www.aimia.com; Shares outstanding: 172.6 million; Market cap: $3.2 billion; Dividend yield: 3.7%) has reached an agreement with TD Bank and CIBC to share its Aeroplan loyalty program.

TD Bank is now the primary credit card issuer for Aeroplan. However, the deal will let CIBC, the former main card issuer, hang on to Aeroplan accounts held by customers who also bank at CIBC. That’s about half the Aeroplan portfolio.

CIBC will receive an upfront payment of $200 million from TD and Aimia. As well, TD will pay CIBC $37.5 million annually for the next three years.
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BROADRIDGE FINANCIAL SOLUTIONS $32.80 (New York symbol BR; TSINetwork Rating: Extra Risk) (201-714-3000; www.broadridge.com; Shares outstanding: 119.1 million; Market cap: $3.9 billion; Dividend yield: 2.6%) continues to hit all-time highs, but we think the stock still has room to rise.

Broadridge serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. It processes 90% of all proxy votes in the U.S. and Canada.

In its fiscal 2013 fourth quarter, which ended June 30, 2013, Broadridge’s earnings jumped 61.4%, to $134.6 million from $83.4 million a year earlier. Per-share earnings rose 67.2%, to $1.12 from $0.67, on fewer shares outstanding.
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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....

METRO INC. (Toronto symbol MRU; www.metro.ca) operates about 600 supermarkets in Quebec and Ontario. It also has over 250 drugstores under the Brunet, The Pharmacy and Drug Basics banners....

CISCO SYSTEMS INC. (Nasdaq symbol CSCO; www.cisco.com) is a leading maker of hardware and software that links and manages computer networks. The company’s hardware includes routers, local area network (LAN) and asynchronous transfer mode (ATM) switches, and server computers. Cisco mainly sells this equipment to large businesses and government agencies....

Heavy equipment distributor Toromont Industries Ltd. completed the spinoff of its natural gas equipment division, Enerflex Ltd., in July 2011. Shareholders received shares of the new Toromont and shares of Enerflex. Here is our latest report on these two Canadian stocks which we follow in our advisory for more aggressive investing, Stock Pickers Digest....

TORSTAR CORP. $5.99 (www.torstar.com) is shutting down its digital division, which mainly operates its websites. This business accounts for about 11% of Torstar’s revenue. The company will shift these operations into its daily and community newspaper divisions. The move will let it cut jobs and improve efficiency. Buy.

CAE $12 (www.cae.com) has won a contract to build three simulators for the Royal Australian Air Force, which will use this equipment to train pilots to fly Hawk Mk-127 fighter jets. CAE did not say how much this contract is worth, but it will deliver these simulators in 2016 and 2017....