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AMEREN CORP. $34 (New York symbol AEE; Income Portfolio, Utilities sector; Shares outstanding: 242.6 million; Market cap: $8.2 billion; Price-to-sales ratio: 1.2; Dividend yield: 4.7%; TSINetwork Rating: Average; www.ameren.com) sells power and natural gas to 3.3 million customers in Illinois and Missouri.

The company is selling its energy marketing business and five of its non-regulated coal-fired power plants in Illinois to Dynegy Inc. (New York symbol DYN). It aims to complete the sale in the fourth quarter of 2013.

Ameren’s unregulated power plants supply 20% of its revenue. However, power demand has fallen in Illinois, and Ameren is paying more to comply with stricter environmental regulations. That has cut these plants’profits.
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NCR CORP. $33 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 164.4 million; Market cap: $5.4 billion; Price-to-sales ratio: 0.9; No dividends paid; TSINetwork Rating: Average; www.ncr.com) is a leading maker of automated teller machines (ATMs), checkout scanners, cash registers and self-serve kiosks.

In February 2013, the company paid $791 million for Israel-based Retalix, whose software helps retailers manage their sales and track inventories. Retailers with a combined 70,000 locations in over 50 countries use Retalix’s products. NCR feels Retalix’s expertise will improve its point-of-sale terminals and self-serve kiosks.

In the three months ended March 31, 2013, Retalix contributed $50 million to NCR’s revenue. That helped push up the total by 13.3% in the latest quarter, to $1.4 billion from $1.2 billion a year earlier. The acquisition should add $255 million to the company’s full-year revenue.
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STANLEY BLACK & DECKER INC. $77 (New York symbol SWK; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 161.9 million; Market cap: $12.5 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.5%; TSINetwork Rating: Average; www.stanleyblackanddecker.com) earned $163.1 million in the first quarter of 2013, down 1.3% from $165.2 million a year earlier.

Due to fewer shares outstanding, earnings per share rose 5.1% to $1.03. These figures exclude costs to integrate its $826.4-million purchase of Infastech, a Hong Kong-based fastener maker that serves automotive, electronic, aerospace and construction clients. Infastech should add $0.20 a share to Stanley’s yearly earnings.

Sales rose 2.5%, to $2.5 billion from $2.4 billion. Infastech’s contribution offset weaker sales of tools and other products and the negative impact of exchange rates.
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TEXAS INSTRUMENTS INC. $35 (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $38.5 billion; Price-to-sales ratio: 3.2; Dividend yield: 3.2%; TSINetwork Rating: Average; www.ti.com) continues to benefit from its focus on analog chips, which convert inputs like touch, sound and pressure into electronic signals. Carmakers and other industrial clients continue to buy more of these chips from the company. However, its sales to makers of computers and video game consoles remain weak.

The company recently said that it expects revenue of $2.99 billion to $3.11 billion in the second quarter of 2013. The midpoint of that range— $3.05 billion— missed the consensus estimate of $3.06 billion. The company also expects earnings of $0.39 to $0.43 a share. The midpoint of $0.41 matched the consensus forecast.

Texas Instruments is a hold....

ENCANA CORP. $17 (New York symbol ECA;Conservative Growth Portfolio, Resources sector;Shares outstanding: 735.5 million; Market cap: $12.5billion; Price-to-sales ratio: 2.9; Dividend yield: 4.7%;TSINetwork Rating: Average; www.encana.com) is amajor North American natural gas producer that isincreasing its oil output.

In the quarter ended March 31, 2013, Encana’s oilproduction rose 48.5%, to 43,500 barrels a day from29,300 a year earlier. Encana expects to increase its oilproduction to 70,000 to 75,000 barrels a day by theend of 2013. It sold some of its U.S. gas properties in2012, so gas production fell 12.1% in the quarter. Gasstill accounted for 92% of Encana’s output.

Due to lower oil and gas prices, Encana’s earningsfell 25.4%, to $179 million from $240 million a yearearlier. Earnings per share declined 27.3%, to $0.24from $0.33, on slightly fewer shares outstanding.These figures exclude several unusual items, particularlygains related to hedging. Cash flow per share fell43.2%, to $0.79 from $1.39. Revenue declined 41.1%,to $1.1 billion from $1.8 billion.
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CENOVUS ENERGY INC.$28 (New York symbol CVE;Conservative Growth Portfolio,Resources sector; Sharesoutstanding: 755.6 million;Market cap: $21.2 billion; Price-to-sales ratio: 1.3; Dividend yield: 3.3%; TSINetworkRating: Average; www.cenovus.com) gets half itsoutput from the western Canadian oil sands.Conventional oil and gas wells supply the other half.

U.S.-based Phillips 66 (New York symbol PSX)owns 50% of Cenovus’s main Foster Creek and ChristinaLake oil sands projects in Alberta. These assetsproduce heavy bitumen, which Cenovus ships to its50%-owned refineries in Illinois and Texas. Phillips 66owns the other 50% of these operations.

In the first three months of 2013, Cenovus produced271,100 barrels of oil equivalent a day (66% oil and34% gas), up 3.1% from 262,900 barrels a year earlier.However, lower oil prices cut Cenovus’s revenueby 5.4%, to $4.3 billion from $4.6 billion a year earlier(all amounts except share price and market cap inCanadian dollars).
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APACHE CORP. $83 (New York symbol APA;Aggressive Growth Portfolio, Resources sector;Shares outstanding: 391.9 million; Market cap: $32.5billion; Price-to-sales ratio: 2.0; Dividend yield: 1.0%;TSINetwork Rating: Average; www.apachecorp.com)produces oil and gas in the U.S., Canada, the U.K.,Australia, Egypt and Argentina.

The company plans to sell some of its less importantproperties this year, including its offshore oil and gasholdings in the Gulf of Mexico. Offshore drilling ismuch riskier than Apache’s onshore operations. In addition,the 2010 sinking of the Deepwater Horizon rigand the resulting oil spill led to new safety rules thathave raised Apache’s costs.

As well, political uncertainty in Egypt will likelyprompt Apache to try to sell its gas operations there.Egypt supplies 20% of Apache’s gas output.
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CHEVRON CORP. $118 (New York symbol CVX;Conservative Growth Portfolio, Resources sector;Shares outstanding: 1.9 billion; Market cap: $224.2billion; Price-to-sales ratio: 1.0; Dividend yield: 3.4%;TSINetwork Rating: Above Average; www.chevron.com) is the second-largest integrated oilcompany in the U.S. after ExxonMobil.

Chevron continues to make progress on two bigAustralian projects. The first is its 47.3%-owned Gorgonnatural gas development off the country’s westcoast. Gorgon, which includes afacility to liquefy gas for shipping,is now 60% complete and shouldstart producing in 2015. Chevron’sshare of Gorgon’s $52-billioncost is $24.6 billion. Its reserveswill last 40 years.

Another big Australian projectis Chevron’s 64.14%-ownedWheatstone LNG facility on thecountry’s west coast. An offshoreoil field will supply 80% of thegas for this plant; Chevron owns80.17% of the joint venture thatwill build and operate the platformsand supply lines. Thisproject is 10% complete andshould start up in 2016. Wheatstone’sreserves should last 30years. Chevron’s share of the $29-billion cost is $18.6billion.
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MONSANTO CO. $101 (New York symbol MON, Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 533.8 million; Market cap: $53.9 billion; Price-to-sales ratio: 3.7; Dividend yield: 1.5%; TSINetwork Rating: Above Average; www.monsanto.com) reported that its sales in the three months ended May 31, 2013 rose 0.7%, to $4.25 billion from $4.22 billion a year earlier.

Sales of genetically modified seeds (72% of total sales) fell 2.4% on weaker demand for its soybean and cotton seeds. However, sales at the Agricultural Productivity division (28%) rose 9.4% due to higher selling prices for its Roundup weed killer.

Due to higher costs to make its seeds, earnings in the quarter fell 3.4%, to $1.68 a share from $1.74 a year earlier. If you exclude a one-time tax charge, earnings per share rose 1.8%, to $1.66 from $1.63.
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WAL-MART STORES INC. $75 (New York symbol WMT; Conservative Growth Portfolio: Consumer sector; Shares outstanding: 3.3 billion; Market cap: $247.5 billion; Price-to-sales ratio: 0.5; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.walmart.com) is the world’s largest retailer. It has 10,800 stores in the U.S. and 26 other countries, including over 3,150 supercentres, which sell groceries as well as general merchandise. Groceries now account for 55% of Wal-Mart’s U.S. sales. Offering groceries helps encourage repeat visits.

Wal-Mart uses its large size to negotiate better prices with its suppliers. That gives it a big advantage over its competitors. The company has also invested heavily in computer systems that track its customers’ buying patterns. This information helps Wal-Mart quickly adjust its inventories to respond to changing trends.

The company’s sales rose 15.7%, from $405.6 billion in 2009 to $469.2 billion in 2013 (Wal-Mart’s fiscal year ends January 31). Earnings rose 25.8%, from $13.5 billion in 2008 to $17.0 billion in 2013. Earnings per share jumped 46.8%, from $3.42 to $5.02, on fewer shares outstanding.
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Pat McKeough responds to many requests for advice on specific stocks 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. Our Inner Circle members ask Pat many questions about familiar stocks that are well known to investors, but he also gets a lot of requests to give his opinion on specific penny stocks in the resource sector. This week, in reply to a question on DNI Metals, Pat looks at the numerous risks this stock faces as it pioneers a technology that has had only limited success so far....

DOMINO’S PIZZA (New York symbol DPZ; www.dominos.com) 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. Same-store sales rose 6.5% internationally and 6.2% in the U.S....

Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a beginning or experienced investor, these weekly updates are designed to give you specific investment advice. Each Investor Toolkit update gives you a fundamental piece of strategy, such as stock trading advice, and shows you how you can put it into practice right away....

H&R REIT (Toronto symbol HR.UN; www.hr-reit.com) owns stakes in 41 office buildings, 112 industrial properties and 163 shopping malls in Canada, principally in the Greater Toronto Area. In the past two years it also added two major purchases in the U.S: Two Gotham Center in New York and the Hess Tower in Houston. The trust has a 99.0% occupancy rate....

Agilent is up 9.5% since it was spun off from its parent company 14 years ago. We take a look at the outlook for this tech stock which bases its growth on an aggressive acquisition strategy. AGILENT TECHNOLOGIES INC. (New York symbol A; www.agilent.com) makes testing systems that help electronics firms improve their products. It also manufactures testing gear for medical research labs. Agilent was a unit of Hewlett-Packard until 1999, when Hewlett spun it off as a separate firm....

Pat McKeough responds to many requests for advice on specific stock picks 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, an Inner Circle member asked about a stock that has risen sharply this year. AutoCanada’s franchise car dealerships have profited from robust car sales and the company continues to expand. Pat looks at whether AutoCanada can sustain its growth and also measures the risk of its growth-by-acquisition strategy....

CANADIAN PACIFIC RAILWAY LTD. (Toronto symbol CP; www.cpr.ca) fell almost 7% this week after activist investor Pershing Square Capital Management L.P. announced that it will sell 7 million of its CP shares over the next year. Pershing currently holds 24 million CP shares, or 14.2% of the total outstanding. In June 2012, Pershing helped install Hunter Harrison as CP’s chief executive officer. Mr. Harrison is the former CEO of Canadian National Railway Co. (Toronto symbol CNR)....

Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a beginning or experienced investor, these weekly updates are designed to give you specific investment advice. Each Investor Toolkit update gives you a fundamental piece of investing strategy, and shows you how you can put it into practice right away....

TEMPUR-PEDIC $44.72 (New York symbol TPX; TSINetwork Rating: Speculative) (800-878-8889; www.tempurpedic.com; Shares outstanding: 60.3 million; Market cap: $2.8 billion; No dividends paid) is changing its name to Tempur Sealy International. Its stock will continue to trade under the TPX symbol.

Tempur-Pedic completed its $1.3-billion purchase of rival Sealy Corp. in March 2013. This was a major acquisition for Tempur-Pedic, but it lets the company diversify into the market for traditional spring-coil beds. That should help it offset rising competition in its current business.

The company makes and distributes Swedish mattresses and neck pillows made from its proprietary Tempur material, which conforms to the body to provide support and help alleviate pressure points. Simmons Bedding Co. and Serta Inc. have both successfully launched memory-foam mattresses that directly compete with Tempur-Pedic’s products.
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INTUITIVE SURGICAL $510 (Nasdaq symbol ISRG; TSINetwork Rating: Average) (515-507-5000; www.intuitivesurgical.com; Shares outstanding: 40.2 million; Market cap: $20.5 billion; No dividends paid) makes the da Vinci, a computerized surgical system.

Guided by a miniature camera connected to a 3-D monitor, surgeons use the da Vinci to operate by remotely manipulating tiny robotic arms. This process is safer and much less invasive than regular surgery. It helps cut patient recovery time and post-operative discomfort. It also reduces scarring and infection risk.

In the three months ended March 31, 2013, Intuitive earned $188.9 million, or $4.56 a share. That’s up 31.6% from $143.5 million, or $3.50 a share, a year earlier. Revenue rose 23.5%, to $611.4 million from $495.2 million. Intuitive is debt-free and holds cash of $3.1 billion, or $77.51 a share.
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AMAZON.COM $278.16 (Nasdaq symbol AMZN; TSINetwork Rating: Extra Risk) (206- 266-1000; www.amazon.com; Shares outstanding: 455.2 million; Market cap: $128.3 billion; No dividends paid) has invested heavily in cloud computing. This is now paying off with some big contracts: earlier this year, it won a $600-million deal with the U.S. Central Intelligence Agency to build a cloud-computing service.

The CIA has traditionally awarded many of its big computing contracts to IBM (New York symbol IBM), a recommendation of our Wall Street Stock Forecaster newsletter.

IBM has protested the awarding of this deal to Amazon, and the U.S. Government Accountability Office recently recommended that the CIA reopen negotiations. The CIA now has 60 days to say whether it will follow this recommendation.
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FIRSTSERVICE CORP. $31.20 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 28.9 million; Market cap: $1.0 billion; No dividends paid) is expanding further into Western Europe through its Colliers International commercial real estate sales division. Colliers has just acquired controlling interests in two firms in Germany and one in the Netherlands. All are leaders in their respective markets.

European real estate markets have weakened along with the region’s economies, and now is a good time to make acquisitions.

FirstService is a hold....

BIRCHCLIFF ENERGY $8.34 (Toronto symbol BIR; TSINetwork Rating: Speculative) (403-261-6401; www.birchcliffenergy.com; Units outstanding: 142.2 million; Market cap: $1.2 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.

In the three months ended March 31, 2013, the company produced an average of 26,108 barrels of oil equivalent a day (82% gas and 18% oil). That was up 24.0% from 21,061 barrels a year earlier. The production increase pushed up Birchcliff’s cash flow per share by 33.3%, to $0.28 from $0.21.

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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WESTJET AIRLINES $22.46 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 121.9 million; Market cap: $3.0 billion; Dividend yield: 1.8%) reports that its load factor fell slightly in May 2013, to 78.5% from 79.2% a year earlier. Load factor is the percentage of available seats that are occupied by paying passengers.

However, the decline was only slight, even though the company increased its capacity by 9.1% to meet higher demand. Revenue passenger miles (the total number of paying passengers on each plane multiplied by the distance travelled in miles) rose 8.2% in the latest quarter.

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 increased number of passengers.
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WAJAX CORP. $32.54 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212- 3300; www.wajax.ca; Shares outstanding:16.7 million; Market cap: $528.7 million; Dividend yield: 7.4%) sells and services cranes, forklifts and other heavy equipment. It also sells related parts (such as bearings, motors, hoses and fittings) and power systems (including diesel engines and transmissions).

In the quarter ended March 31, 2013, Wajax’s revenue fell 6.1%, to $336.3 million from $358.1 million a year earlier. Earnings per share fell 39.8%, to $0.62 from $1.03.

The declines mostly came from reduced activity in the western Canadian oil and gas industry, which hurt results at Wajax’s power systems business. Lower mining equipment sales more than offset strength in the forestry and construction markets.
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