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Emerging markets have been down lately but the long-term outlook remains sound. A good way to profit from that outlook with less risk is through low-fee exchange traded funds (ETFs). Here are two we follow regularly.

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Pat McKeough responds to many requests for specific advice on stocks to buy and other questions on investment strategy 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 received a question from an Inner Circle member about one of the world’s leading makers of luxury accessories. In order to generate further growth Coach is relying on increasing overseas sales and on an expansion into more men’s products. Pat examines the company’s prospects in the face of stiffer competition and rising costs. ...

VISA INC. (New York symbol V; www.visa.com) operates the world’s largest electronic payments network. The company processes credit, debit, prepaid and commercial payments under the Visa, Visa Electron, Interlink and PLUS brands. Visa gets most of its revenue from fees it charges card issuers and merchants for using its network. These fees are based on payment volume, transactions processed and other factors. The responsibility for evaluating customer creditworthiness and collecting payments lies with the banks that issue the cards, not with Visa....

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 investment advice, and shows you how you can put it into practice right away. Today’s tip: “The best way to outperform the market is to invest consistently—and to avoid going in and out of the market erratically trying to buy low and sell high.”...

TELUS (Toronto symbol T; www.telus.com) has 7.7 million wireless subscribers across Canada. It gets much more of its revenue from wireless than major competitor BCE—54% compared to BCE’s 32%. Telus gets the remaining 46% of its revenue from its traditional phone business, which has 3.4 million customers in B.C., Alberta and eastern Quebec. Telus also has 1.3 million Internet subscribers and 712,000 Telus TV subscribers....

ACI WORLDWIDE (Nasdaq symbol ACIW; www.tsainc.com) 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 mid-February 2012, ACI completed its $540 million purchase of S1 Corp. This acquisition has been a good fit: S1 sells transaction software for banks, credit unions, retailers and other payment processors. It has over 3,000 clients worldwide....

Pat McKeough responds to many requests for specific advice on investing in stocks and other questions on investment strategy 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 us about a stock that is a leader in developing drugs for viral diseases. Gilead is particularly strong in the treatment of hepatitis, a lucrative market. Pat examines the progress of Gilead’s attempt to win approval for a new hepatitis drug against stiff competition from other major pharmaceutical firms. ...

RUSSEL METALS $26.27 (Toronto symbol RUS; TSINetwork Rating: Speculative) (905-819-7777; www.russelmetals.com; Shares outstanding: 60.9 million; Market cap: $1.6 billion; Dividend yield: 5.3%) 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 March 31, 2013, revenue rose 2.4%, to $821.8 million from $802.9 million a year earlier. The steel-distribution division’s revenue fell 26%, and the metal-services business saw a 10% decline. The slower economy cut steel demand.

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CHEMTRADE LOGISTICS INCOME FUND $17.30 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics- .com; Units outstanding: 41.7 million; Market cap: $716.7 million; Dividend yield: 7.0%) 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 March 31, 2013, Chemtrade’s revenue fell 7.8%, to $210.0 million from $227.9 million a year earlier. The decline mostly reflects lower prices for sulphuric acid on international markets. However, cash flow per unit rose 7.6%, to $0.71 from $0.66.

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ALIMENTATION COUCHE-TARD $63.38 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couche-tard.com; Shares outstanding: 179.4 million; Market cap: $11.6 billion; Dividend yield: 0.5%) reports 44.9% higher sales in the three months ended April 28, 2013, up to $8.8 billion from $6.1 billion a year earlier. The gain mostly came from Norway’s Statoil Fuel & Retail ASA, which it bought for $2.7 billion in June 2012 (all figures except share price in U.S. dollars).

Excluding one-time items, earnings per share rose 7.0%, to $0.61 from $0.57. The latest earnings missed the consensus estimate of $0.77 a share, but that was because the latest quarter included upfront costs related to Statoil’s new computer systems and reporting software.

The company’s outlook is positive. But while high gasoline prices are pushing up the company’s sales, they’re also causing motorists to cut back on driving. That’s hurting its fuel sales volumes, which is cutting its profit margins on the fuel it does sell. As well, fewer customers at the pumps means less traffic through the company’s stores.

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TIM HORTONS $58.90 (Toronto symbol THI; TSINetwork Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 153.1 million; Market cap: $9.0 billion; Dividend yield: 1.8%) has a long track record of successfully launching new products to take advantage of consumer trends.

The latest is its first gluten-free snack, the Gluten- Free Coconut Macaroon. Gluten-free baked goods are for people who can’t digest wheat or are concerned about the possible unhealthy effects of eating gluten, first popularized in the 2011 book Wheat Belly.

Tim Hortons is a buy....

PASON SYSTEMS $18.98 (Toronto symbol PSI; TSINetwork Rating: Speculative) (403-301-3400; www.pason.com; Shares outstanding: 82.1 million; Market cap: $1.6 billion; Dividend yield: 2.7%) has lost a patent dispute with its main competitor involving its AutoDriller product, which runs drilling operations more accurately and efficiently. The judgment awards the competitor $52.9 million of damages.

Pason rents equipment for monitoring and managing land-based oil rigs. It also provides communication systems that companies use to remotely collect data from their drilling operations. Pason serves oil and gas firms and drilling contractors in Canada, the U.S., Mexico and Argentina.

In the quarter ended March 31, 2013, revenue fell 5.1%, to $109.3 million from $115.1 million a year earlier. Strong international sales were offset by slower activity in the U.S. and Canada. 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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strong>AEROPOSTALE $14.15 (New York symbol ARO; TSINetwork Rating: Extra Risk) (646-485-5410; www.aeropostale.com; Shares outstanding: 78.5 million; Market cap: $1.1 billion; No dividends paid) now plans to launch the Aeropo
This summer, Aeropostale plans to open small outlets inside Liverpool’s department stores across the country. It will also roll out standalone stores, with the first one scheduled to open in Mexico City’s Sante Fe Mall.

Aeropostale is still a hold.
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INTUITIVE SURGICAL $415.54 (Nasdaq symbol ISRG; TSINetwork Rating: Average) (515-507-5000; www.intuitivesurgical.com; Shares outstanding: 40.2 million; Market cap: $17.0 billion; No dividends paid) is down over 16% since it released a preliminary revenue forecast for the latest quarter that was below the consensus estimate.

In the second quarter of 2013, the company expects to report revenue of about $575 million, up 7% from $537 million a year earlier. However, that’s well below the consensus estimate of $629.8 million.

Intuitive expects revenue from sales of replacement parts, training and other services to rise 18%, but it predicts a 6% decline in da Vinci system sales. That’s mainly due to tightening hospital budgets in the U.S.

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WYNDHAM WORLDWIDE $59.05 (New York symbol WYN; TSINetwork Rating: Extra Risk) (973- 753-6000; www.wyndhamworldwide.com; Shares outstanding: 140.3 million; Market cap: $8.3 billion; Dividend yield: 1.6%) is one of the world’s largest hospitality companies, with 7,380 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 worldwide.

In the three months ended March 31, 2013, the hotel and resort operator’s revenue rose 9.4%, to $1.13 billion from $1.04 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 Wyndham’s occupancy rate by 2.4%.
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ATLANTIC TELE-NETWORK $54 (Nasdaq symbol ATNI; TSINetwork Rating: Speculative) (340- 777-8000; www.atni.com; Shares outstanding: 15.7 million; Market cap: $855.6 million; Yield: 1.9%) expects to soon complete the sale of its Alltel wireless business to AT&T (symbol T on New York) for cash of $780 million. In April 2010, Atlantic bought Alltel from Verizon Wireless for just $223 million.

In the three months ended March 31, 2013, Atlantic’s revenue fell 5.6%, to $172.9 million from $183.1 million a year earlier. Alltel accounted for $108.0 million of revenue in the latest quarter, and slowed in the latest quarter. Earnings fell 5.8%, to $8.8 million, or $0.56 a share, from $9.3 million, or $0.60 a share.

After the sale, Atlantic Tele-Network will still have telecom operations in the U.S. southwest, New England, New York State, Guyana, Bermuda and portions of the Caribbean islands.
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BELLATRIX EXPLORATION $6.74 (Toronto symbol BXE; TSINetwork Rating: Speculative) (403-266-8670; www.bellatrixexploration.com; Shares outstanding: 107.9 million; Market cap: $715.5 million; No dividends paid) has entered into a joint venture agreement with Grafton Energy that should speed up the development of its Cardium shale oil deposits in Alberta.

Under the agreement, Grafton will pay Bellatrix $100 million. In return, it will get 54% of the production from a 29-well, $122- million drilling program. Grafton will receive this share of the wells’ output until it earns back its $100 million, plus an 8% return on its original investment. It will then hold a 33% interest in each well.

On top of that, Bellatrix plans to spend a total of $210 million to $220 million on exploration and development this year.
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TRILOGY ENERGY CORP. $29.90 (Toronto symbol TET; TSINetwork Rating: Speculative) (403-290- 2900; www.trilogy.com; Shares outstanding: 91.7 million; Market cap: $3.5 billion; Dividend yield: 1.4%) owns oil and gas properties in the Kaybob and Grande Prairie areas of central Alberta. About 54% of Trilogy’s production is natural gas. The remaining 46% is oil.

In the three months ended March 31, 2013, Trilogy produced 36,119 barrels of oil equivalent per day (including gas), up 3.2% from 35,014 barrels a year earlier. Cash flow per share was unchanged at $0.67.

Trilogy pays out just 15% of its cash flow as dividends. That gives it a low 1.4% yield, but it’s also letting the company maintain an active drilling program. In the first quarter of 2013, Trilogy spent $169 million on exploration and development, down 6.3% from $180.4 million a year earlier. The company drilled 35 wells, up from 31.
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ZARGON OIL & GAS $6.39 (Toronto symbol ZAR; TSINetwork Rating: Speculative) (403-264-9992; www.zargon.ca; Shares outstanding: 30.0 million; Market cap: $189.3 million; Dividend yield: 11.3%) produces natural gas and oil in Alberta, Manitoba, Saskatchewan and North Dakota. The company’s production is 67% oil and 33% gas.

In the three months ended March 31, 2013, Zargon produced 7,648 barrels of oil equivalent per day, down 13.4% from 8,834 barrels a year earlier. Cash flow per share was unchanged at $0.46.

Zargon expects cash flow of $2.03 a share in 2013. It trades at 3.1 times that estimate. But cash flow could fall to $1.60 a share in 2014. The shares yield a high 11.3%.
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ALARMFORCE $9.86(Toronto symbol AF; TSINetwork Rating: Speculative) (1-800-267- 2001; www.alarmforce.com; Shares outstanding: 12.2 million; Market cap: $122.3 million; Dividend yield: 1.0%) has completed the strategic review of business opportunities that it launched in August 2012. This process included a possible sale of the company.

The review did not result in a takeover offer that the company felt reflected its value. As a result, it will now focus on growth.

AlarmForce’s outlook is bright, and it has potential to grow by offering new services to its subscribers. That includes its VideoRelay system, which lets users watch their homes through computers and smartphones.
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strong>DOREL INDUSTRIES $38.10 (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: 3.2%) makes a wide 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.

In the three months ended March 31, 2013, Dorel’s sales fell 4.3%, to $594.2 million from $621.1 million a year earlier (all figures except share price and market cap in U.S. dollars). Earnings per share fell 23.1%, to $0.70 from $0.91.

In mid-June, the company said that it expects its results to remain weak for the quarter ended June 30, 2013. That’s because poor weather across the U.S., Canada and Europe has led to lower-than-expected sales volumes, particularly for bicycles, which supply 34% of Dorel’s overall sales. The slowdown has also prompted the company’s competitors in the bicycle industry to cut their prices.
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STANTEC INC. $46.56 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288; www.stantec.com; Shares outstanding: 46.2 million; Market cap: $2.1 billion; Dividend yield: 1.4%) sells a range of consulting, project delivery, design and technology services. Its clients operate in a variety of industries, including transportation, construction and oil and gas.

In the three months ended March 31, 2013, Stantec’s revenue rose 17.7%, to $513.2 million from $436.2 million a year earlier. Acquisitions were one reason for the increase. Stantec is also working on several new projects. Earnings gained 13.7%, to $28.4 million, or $0.62 a share, from $25.0 million, or $0.55 a share.

The company continues to grow by acquisition, with seven purchases in 2012. Its most recent addition was Roth Hill, a 30-person firm that designs systems for collecting and treating water and wastewater. Stantec sees major growth potential in the water industry.
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REITMANS (CANADA) LTD. $8.99 (Toronto symbol RET.A; TSINetwork Rating: Extra Risk) (514-384-1140; www.reitmans.com; Shares outstanding: 64.6 million; Market cap: $560.8 million; Dividend yield: 8.9%) has reached an agreement with Sears Canada to sell its Penningtons clothing in Sears’ stores.

The Penningtons chain sells plus-sized clothing, starting at size 14, that aims to be both fashionable and affordable. It consists of 156 stores.

Under the deal, Reitmans will start selling Penningtons’ clothes in five Sears stores with about 4,000 square feet of space each and online at sears.ca. It will introduce it in additional Sears stores in 2014.

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IMPERIAL METALS $11.16 (Toronto symbol III; TSINetwork Rating: Speculative) (604-669-8959; www.imperialmetals.com; Shares outstanding: 74.4 million; Market cap: $803.6 million) is a Vancouver-based mining firm that produces and explores for base and precious metals. Its 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 owns 31.1% of Huckleberry, and Furukawa Co., Dowa Holdings and Marubeni Corp. own 6.3% each.

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.

The company is also developing its Red Chris copper/ gold property in northwestern B.C. and could start up an open-pit mine as early as late 2014. The property holds as much as 9 billion pounds of copper and 13.8 million ounces of gold.
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strong>YAMANA GOLD $10.43 (Toronto symbol YRI; TSINetwork Rating: Speculative) (416-815-0220; www.- yamana.com; Shares outstanding: 752.4 million; Market cap: $8.1 billion; Dividend yield: 2.5%) 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.

In the quarter ended March 31, 2013, Yamana’s revenue fell 4.4%, to $534.9 million from $559.7 million a year earlier (all figures except share price and market cap in U.S. dollars). Gold production rose, but prices for gold, as well as copper and silver, which are both significant by-products of Yamana’s gold mining, dropped. Cash flow per share fell 3.3%, to $0.29 from $0.30.

Yamana held a high cash balance of $342.6 million, or $0.46 a share, on March 31. Its $860.5 million of debt is just 10.6% of its market cap. The shares yield 2.5%.
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