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AASTRA TECHNOLOGIES $18.20 (Toronto symbol AAH; TSINetwork Rating: Speculative) (905-760- 4200; www.aastra.com; Shares outstanding: 11.6 million; Market cap: $208.7 million; Dividend yield: 4.4%) 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 March 31, 2013, the company’s sales fell 9.3%, to $133.5 million from $147.3 million a year earlier. Sales declined in most regions, especially Western Europe, where Aastra gets the majority of its revenue. Excluding the impact of foreign exchange rates, sales declined 10.4%. Earnings per share fell to $0.01 from $0.12.


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CALIAN TECHNOLOGIES $20.35 (Toronto symbol CTY; TSINetwork Rating: Speculative) (613- 599-8600; www.calian.com; Shares outstanding: 7.6 million; Market cap: $155.6 million; Dividend yield: 5.5%) operates in two areas: the business and technology services division (which supplies 70% of Calian’s revenue) provides engineers, health care workers and other skilled professionals to clients on a contract basis. The systems engineering division (30% of revenue) sells hardware and software for testing, operating and managing satellite and other communication systems.

In the three months ended March 31, 2013, Calian’s revenue fell 4.4%, to $58.9 million from $61.6 million a year earlier. Earnings declined 8.6%, to $3.4 million, or $0.44 a share, from $3.7 million, or $0.48 a share.

The business and technology services division continues to benefit from steady orders from various Canadian federal government departments, including the Department of National Defence. However, these clients placed fewer orders in the latest quarter, which pushed down the division’s revenue by 6%. That hurt Calian’s profit margins, which lowered its earnings.
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WESTJET AIRLINES $23.45 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1- 877-493-7853; www.westjet.com; Shares outstanding: 132.3 million; Market cap: $3.1 billion; Dividend yield: 1.7%) recently dropped from the all-time high of $25.47 it reached in April 2013, even though the company reported record earnings in the latest quarter.

WestJet’s earnings per share jumped 38.8% in the three months ended March 31, 2013, to $0.68 from $0.49 a year earlier.

Demand for the company’s flights remains high, and it has entered into new partnerships with other airlines; these were the main reasons for the increases.
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TOROMONT INDUSTRIES LTD. $23.32 (Toronto symbol TIH; TSINetwork Rating: Extra Risk) (

416-667- 5511; www.toromont.com; Shares outstanding: 76.6 million; Market cap: $1.8 billion; Dividend yield: 2.2%) continues to report higher sales and earnings. In response, the company has raised its quarterly dividend by 8.3% with the April 2013 payment, to $0.13 a share from $0.12, for a 2.2% annualized yield.

The stock trades at 14.6 times Toromont’s forecast 2013 earnings of $1.60 a share.
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MCCOY CORP. $4.80 (Toronto symbol MCB; TSINetwork Rating: Speculative) (780-453-8451; www.mccoyglobal.com; Shares outstanding: 26.7 million; Market cap: $124.7 million; Dividend yield: 4.2%) operates through two divisions: Mobile Solutions and Energy Products and Services.

Energy Products and Services sells hydraulic equipment for drilling rigs. This gear includes power tongs, which are large, wrench-like tools that tighten and loosen the pipe in the drill hole. Mobile Solutions builds heavy-duty trailers for U.S. and Canadian clients in the oil and gas, wind energy, infrastructure and construction industries.

In the three months ended March 31, 2013, McCoy’s revenue fell 7.7%, to $42.0 million from $45.5 million. Sales declines at the Mobile Services division offset gains at Energy Products and Services. Earnings fell 4.3%, to $2.1 million, or $0.08 a share, from $2.2 million, or $0.08.
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SYMANTEC CORP. $23.62 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (1-408-517-8000; www.symantec.com; Shares outstanding: 689.2 million; Market cap: $16.7 billion; Dividend yield: 2.5%) sells computersecurity technology, including anti-virus and emailfiltering software, to businesses and consumers.

In its fiscal 2013 fourth quarter, which ended March 29, 2013, Symantec’s revenue rose 4.4%, to $1.75 billion from $1.68 billion a year earlier. Earnings per share rose 15.8%, to $0.44 from $0.38.

Symantec is laying off 30% to 40% of its managers and streamlining its product lines. This restructuring should increase its gross profit margin (gross profits as a percentage of revenue) from 25.7% in fiscal 2013 to at least 30% in fiscal 2015.
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AMAZON.COM $262.96 (Nasdaq symbol AMZN; TSINetwork Rating: Extra Risk) (206- 266-1000; www.amazon.com; Shares outstanding: 455.2 million; Market cap: $122.4 billion; No dividends paid) plans to start selling original TV shows through its website.

Traditionally, TV producers make pilot episodes of new shows. If broadcast or cable networks like a pilot, they order a series of about 13 episodes.

Amazon recently began streaming pilots for 14 new shows on its website, which viewers can watch for free. If enough people like a show, the company will produce more episodes and sell them through Amazon Prime, its $79-a-year rewards program, which offers free two-day shipping and access to other online content.
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COMPUTER MODELLING GROUP $21.63 (Toronto symbol CMG; TSINetwork Rating: Speculative) (403-531-1300; www.cmgroup.com; Shares outstanding: 38.1 million; Market cap: $820.0 million; Dividend yield: 3.0%) sells consulting services and software that help oil and gas producers use advanced recovery techniques to get more out of their existing wells. The company has customers in over 50 countries and offices in Calgary, Houston, London, Caracas and Dubai.

In the three months ended December 31, 2012, Computer Modelling’s revenue rose 5.7%, to $16.8 million from $15.9 million a year earlier. Software licence sales increased, which offset a decline in consulting and professional services revenue. Earnings also rose 5.7%, to $6.2 million from $5.8 million. Earnings per share were unchanged at $0.16 on more shares outstanding.

Computer Modelling holds cash of $52.2 million, or $1.38 a share, and has no debt. It spent $3.1 million, or a high 18.7% of its revenue, on research in the latest quarter. The shares yield 3.0%.
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PASON SYSTEMS $17.93 (Toronto symbol PSI; TSINetwork Rating: Speculative) (403-301-3400; www.pason.com; Shares outstanding: 82.1 million; Market cap: $1.5 billion; Dividend yield: 2.9%) rents equipment for monitoring and managing oil and gas rigs. It also sells communication systems, such as its satellite system, which companies use to remotely collect data from their drilling operations. Pason serves oil and gas producers and drilling contractors throughout Canada, the U.S., Mexico, Argentina and Australia.

In the three months ended March 31, 2013, Pason’s revenue fell 5.1%, to $109.3 million from $115.1 million a year earlier. Less drilling in the U.S. and Canada offset strong international sales. Cash flow per share fell 7.9%, to $0.58 from $0.63.

Pason holds cash of $168.9 million, or $2.06 a share, and has no debt.
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DUNDEE REIT $35.56 (Toronto symbol D.UN; TSINetwork Rating: Speculative) (416- 365-3535; www.dundeereit.com; Shares outstanding: 97.7 million; Market cap: $4.0 billion; Dividend yield: 6.3%) owns and manages 24.1 million square feet of office and retail space.

In the three months ended March 31, 2013, Dundee REIT’s revenue jumped 36.2%, to $189.6 million from $139.2 million a year earlier. The trust bought $2.6 billion worth of new buildings and added 9.9 million square feet of office space in 2012. So far this year, it has made $459.5 million of acquisitions and added 1.4 million square feet. These new properties supplied most of the revenue increase.

Cash flow jumped 32.1%, to $61.6 million from $46.7 million. However, cash flow per unit fell 3.2%, to $0.61 from $0.63, on more units outstanding. The trust issued new units to pay for the acquired properties. Dundee REIT yields 6.3%.
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Growth by acquisition can be risky, as newly purchased companies may develop unforeseen problems, especially in an unsettled economy. However, Veresen aims to cut that risk by adding plants with long-term contracts already in place.

VERESEN (Toronto symbol VSN; www.vereseninc.com) owns pipelines, power plants and gas processing facilities across North America. A major holding is 50% of the Alliance gas line, which runs 3,000 kilometres between Chicago and Fort St. John, B.C. Enbridge (Toronto symbol ENB) owns the other 50%....

DOMINO’S PIZZA $56.61 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3030; www.dominos.com; Shares outstanding: 56.3 million; Market cap: $3.2 billion; Dividend yield: 1.4%) is the world’s largest chain of pizza stores that offer takeout and delivery. It operates 10,040 outlets in the U.S. and over 70 other countries. Franchisees run most of these stores.

Excluding one-time items, the company’s earnings per share rose 25.5% in the quarter ended March 24, 2013, to $0.59 from $0.47 a year earlier. Sales rose 8.6%, to $417.6 million from $384.6 million. Samestore sales rose 6.5% internationally and 6.2% in the U.S.

Domino’s continues to boost its sales by aggressively promoting its new pizza recipes. The company is also profiting by moving into ordering online and through software applications, or apps, on smartphones. In addition, Domino’s still has lots of growth potential overseas.
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CARFINCO FINANCIAL GROUP $8.42 (Toronto symbol CFN; TSINetwork Rating: Speculative) (1-888-486-4356; www.carfinco.com; Shares outstanding: 26.4 million; Market cap: $226.9 million; Dividend yield: 5.7%) provides car loans to consumers who don’t meet the criteria of traditional lenders, like banks.

In the three months ended March 31, 2013, Carfinco’s revenue rose 14.4%, to $19.2 million from $16.8 million a year ago. It loaned $36.6 million in the quarter, up 12.9% from $32.4 million. Earnings per share rose 5.3%, to $0.20 from $0.19.

The company raised its monthly dividend by 14.3%, to $0.04 from $0.035, starting with the October 2012 payment. That was Carfinco’s fourth dividend increase since the start of 2011. The higher payout gives the stock a 5.7% yield.
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INTACT FINANCIAL CORP. $60.40 (Toronto symbol IFC; TSINetwork Rating: Speculative) (416-341- 1464; www.intactfc.com; Shares outstanding: 133.3 million; Market cap: $8.0 billion; Dividend yield: 2.9%) 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 March 31, 2013, Intact’s revenue rose 8.6%, to $1.52 billion from $1.40 billion a year earlier. Before one-time items, it earned $1.36 a share, down 12.2% from $1.55 a year earlier. The insurance business was hit by higher snow and windrelated claims compared to the year-earlier quarter.

Intact’s shares are down from over $65 in March 2013 because Ontario’s minority Liberal government looks like it will vote for an NDP motion calling for a 15% cut to auto insurance premiums. The vote would be in exchange for NDP support on the next provincial budget, which would avoid triggering an election.
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BROADRIDGE FINANCIAL SOLUTIONS $26.81 (New York symbol BR; TSINetwork Rating: Extra Risk) (201-714-3000; www.broadridge.com; Shares outstanding: 121.9 million; Market cap: $3.3 billion; Dividend yield: 2.7%) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. The company processes 85% of all proxy votes in the U.S.

In its fiscal 2013 third quarter, which ended March 31, 2013, Broadridge’s earnings per share, excluding one-time items, climbed 21.9%, to $0.39 from $0.32.

Revenue rose 5.4%, to $576.7 million from $547.0 million. Broadridge continues to do a good job of attracting new clients. It also held on to 99% of its existing customers.
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SHERRITT INTERNATIONAL $4.74 (Toronto symbol S; TSINetwork Rating: Speculative) (1-800-704-6698; www.sherritt.com; Shares outstanding: 296.9 million; Market cap: $1.4 billion; Dividend yield: 3.6%) reported cash flow of $0.20 a share in the three months ended March 31, 2013. That was down 35.4% from $0.31 a year earlier. A decline in coal sales and lower nickel, cobalt and oil prices were the main reasons for the drop.

Sherritt recently raised its quarterly dividend by 13.2%. The shares now yield 3.6%.

The company needs an improving global economy to fuel commodity demand. But its low production costs and ongoing geographic diversification enhance its prospects.
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NEW GOLD $6.89 (Toronto symbol NGD; TSINetwork Rating: Speculative) (888-315-9715; www.newgold- .com; Shares outstanding: 476.9 million; Market cap: $3.2 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 project in B.C.

In the quarter ended March 31, 2013, New Gold’s cash flow fell 5.6%, to $0.17 a share from $0.18 a year earlier. Lower gold prices offset new production from New Afton, which started up in late 2012.

New Gold’s $854.3 million of long-term debt is a moderate 26.7% of its market cap. It also holds cash of $672.4 million, or $1.41 a share.
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IAMGOLD $5.23 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464-9999; www.iamgold- .com; Shares outstanding: 376.6 million; Market cap: $1.9 billion; Dividend yield: 4.7%) 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 100% of the Rosebel mine in Suriname, South America.

IAMGold also has a 1% royalty interest in the Diavik diamond mine in the Northwest Territories. As well, it 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 March 31, 2013, IAMGold’s revenue fell 13.8%, to $305.3 million from $354.l million a year earlier. Cash flow per share fell 35.4%, to $0.49 from $0.57. The declines mostly resulted from lower gold prices, partly offset by a decline in the company’s costs.
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TIM HORTONS $57.34 (Toronto symbol THI; TSINetwork Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 153.4 million; Market cap: $8.9 billion; Dividend yield: 1.8%) has renovated and redesigned its stores over the last couple of years to make them more appealing to customers and boost traffic.

However, the company is now under pressure to do more from Highfields Capital, a U.S.-based activist investment firm that owns 1.5% of Tim Hortons’ shares.

Highfields has proposed several ways to unlock shareholder value, including slowing Tim Hortons’ expansion in the intensely competitive U.S. market; borrowing money to buy back roughly 40% of its stock; selling or spinning off its distribution operations; and transferring its real estate holdings to a new real estate investment trust.
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FAIR ISAAC CORP. $49.29 (New York symbol FICO; TSINetwork Rating: Average) (415-472-2211; www.fairisaac.com; Shares outstanding: 35.9 million; Market cap: $1.8 billion; Dividend yield: 0.2%) makes FICO Scores, the computer program that dominates the market for software that businesses use to evaluate customer creditworthiness. The company is also profiting by selling software that helps credit card issuers control fraud and analyze their clients’ spending patterns.

In its fiscal 2013 second quarter, which ended March 31, 2013, Fair Isaac’s earnings per share before one-time items rose 4.4% from a year ago, to $0.69 from $0.66. Revenue rose 12.4%, to $179.3 million from $159.5 million.

Fair Isaac continues to spend around 8% of its revenue on research. That lets it keep producing innovative new products that help it stay ahead of its competitors. It’s also building its expertise by purchasing other technology firms. That adds risk, but most of these are small purchases that it can easily integrate into its current businesses.
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KRAFT FOODS GROUP INC. (Nasdaq symbol KRFT; www.kraftfoodsgroup.com) makes a variety of grocery products, including Kraft macaroni and cheese, Oscar Mayer meats, Philadelphia cream cheese, Maxwell House coffee, Jell-O desserts and Miracle Whip salad dressing. In October 2012 Kraft broke itself up into two companies, spinning off Mondelez (Nasdaq symbol MDLZ), which makes cookies, biscuits, gum and beverages and does over 80% of its business outside North America....

Pat McKeough responds to many requests for advice on stock market investments and other questions on investment and the economy from the members of his Inner Circle. 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, we heard from an Inner Circle member who was interested in one of the best known courier companies, UPS. Pat looks at the company’s strategy of growth by acquisition which suffered a recent setback. And while UPS still does the greater part of its business in the U.S., he also looks at the effect of a slowdown in international markets on the company’s results....

BCE INC. (Toronto symbol BCE; www.bce.ca) is Canada’s largest provider of telephone, Internet and wireless services. It also sells satellite TV services across the country. The company continues to benefit from strong demand for wireless and high-speed Internet services. That’s a big reason why the stock is up 31% since 2008....

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

ISHARES CDN REIT SECTOR INDEX FUND $17.10 (Toronto symbol XRE; buy or sell through brokers; ca.ishares.com) holds the 15 Canadian real estate investment trusts (REITs) in the S&P/TSX Capped REIT Index. The weight of each REIT is limited to 25% of the ETF’s value.

iShares CDN REIT’s expenses are 0.60% of its assets. The fund yields 4.4%.

The ETF’s largest holding is RioCan REIT at 19.5%, followed by H&R REIT (10.7%), Dundee REIT (8.4%), Canadian REIT (7.2%), Calloway REIT (7.0%), Primaris REIT (6.3%), Cominar REIT (6.2%), Canadian Apartment REIT (6.0%), Boardwalk REIT (5.7%), Allied Properties REIT (5.2%), Chartwell REIT (4.5%), Artis REIT (4.5%), Granite REIT (4.3%), Northern Property REIT (2.6%) and Crombie REIT (1.8%).
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