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INTERNATIONAL FLAVORS & FRAGRANCES INC. $82 (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 81.5 million; Market cap: $6.7 billion; Priceto- sales ratio: 2.4; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.iff.com) produces compounds that improve the taste of food and make consumer products smell better.

The company continues to expand in fast-growing markets like China, India and Turkey. Strong sales in these countries increased IFF’s overall sales by 2.4% in the quarter ended March 31, 2013, to $727.8 million from $710.6 million a year earlier. If you disregard unfavourable exchange rates and products that IFF has discontinued, sales would have risen 4%. The higher sales pushed up per-share earnings by 19.0%, to $1.19 from $1.00.

IFF is a buy.

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FRONTIER COMMUNICATIONS CORP. $4.25 (Nasdaq symbol FTR; Income Portfolio, Utilities sector; Shares outstanding: 997.8 million; Market cap: $4.2 billion; Price-to-sales ratio: 0.9; Dividend yield: 9.4%; TSINetwork Rating: Average; www.frontier.com) sells phone, Internet and video services to 3.1 million customers in 27 states.

The company continues to attract high-speed Internet users, but demand for traditional phone services is falling. That cut its overall revenue by 4.9% in the quarter ended March 31, 2013, to $1.2 billion from $1.3 billion a year earlier. Earnings fell 7.0% to $48.8 million from $52.5 million. Due to more shares outstanding, earnings per share were unchanged at $0.05.

Frontier continues to do a good job of integrating local phone systems it purchased from Verizon in 2010. It feels this will save it $100 million in 2013. That should help it pay down its debt of $8.4 billion, which is a high 2.0 times its market cap.
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WINDSTREAM CORP. $8.25 (Nasdaq symbol WIN; Income Portfolio, Utilities sector; Shares outstanding: 592.8 million; Market cap: $4.9 billion; Price-to-sales ratio: 0.8; Dividend yield: 12.1%; TSINetwork Rating: Average; www.windstream.com) provides telephone and other communication services to 4.2 million clients, mainly in rural areas in the U.S.

In November 2011, Windstream bought PAETEC Holding Corp., which sells telecommunication services to businesses in 46 states. The company issued $842 million in stock to PAETEC shareholders and assumed $1.6 billion of PAETEC’s debt.

The deal raised Windstream’s long-term debt to $8.1 billion, or a high 1.7 times its market cap. It also added more business and high-speed Internet clients. These users now supply 71% of Windstream’s sales.
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GOOGLE INC. $868 (Nasdaq symbol GOOG; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 331.8 million; Market cap: $288.0 billion; Priceto- sales ratio: 5.5; No dividends paid; TSINetwork Rating: Above Average; www.google.com) now sells Internet and TV services through its own fibreoptic networks in Kansas City, Missouri, Austin, Texas, and Provo, Utah. Download speeds on these systems are up to 100 times faster than other broadband networks. Google will probably bring this service to more cities in the next few years.

The company is also working on new ways to expand Internet access in developing regions like Africa and Asia. It aims to team up with local telecom firms to build new high-speed wireless networks, possibly by using satellites or stationary balloons to transmit signals over long distances.

In addition, Google’s Motorola Mobility subsidiary is developing new low-cost mobile phones and tablet computers for emerging markets.
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VERIZON COMMUNICATIONS INC. $50 (New York symbol VZ, Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 2.9 billion; Market cap: $145.0 billion; Price-to-sales ratio: 1.2; Dividend yield: 4.1%; TSINetwork Rating: Average; www.verizon.com) gets 66% of its revenue from its 98.9 million wireless subscribers in the U.S. It also has 22.2 million phone and Internet customers.


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AT&T INC. $36 (New York symbol T; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 5.4 billion; Market cap: $194.4 billion; Price-to-sales ratio: 1.5; Dividend yield: 5.0%; TSINetwork Rating: Average; www.att.com) is the largest wireless service provider in the U.S., with 107.3 million subscribers. This business supplies 53% of AT&T’s revenue and 74% of its earnings.

The wireline division, which sells phone services, television packages and high-speed Internet access to 37.4 million customers, accounts for most of AT&T’s remaining revenue and earnings.

Due to the recession and weaker demand for regular phone services, AT&T’s revenue fell slightly from $123.4 billion in 2008 to $122.5 billion in 2009. However, revenue turned around and climbed to $127.4 billion in 2012.
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Most U.S. markets have risen lately, while Canada’s resource-heavy Toronto Stock Exchange has lagged. But as always, both remain subject to unexpected downturns. One way to profit from rising markets is to add exchange traded funds (ETFs) that track major stock indexes to your portfolio. ETFs trade on stock exchanges, just like stocks. Prices are quoted in newspaper stock tables and online. You must pay brokerage commissions to buy and sell ETFs, but their low management fees still give them a cost advantage over most mutual funds....

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 investment advice, including specific stock investing tips. Each Investor Toolkit update gives you a fundamental piece of investing strategy, and shows you how you can put it into practice right away....

Slowing industrial activity in North America and China has pushed down oil demand. At the same time, rising shale oil production from North Dakota’s Bakken region has increased inventories. Both of these factors have weighed on prices. However, low prices are a mixed blessing for integrated oil companies like Suncor Energy. They earn less profit by producing crude, but their refineries also pay less for the oil they use....

More Americans own pets than ever before, and the trend looks set to keep rising. That should continue to increase the earnings of leading companies in the business. Today we examine whether PetSmart can continue the success it has enjoyed in recent years....

Pat McKeough responds to many requests for specific advice on stock market investing 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 the prospects for one of Canada’s leading natural gas processors and distributors. AltaGas profits from a number of fixed long-term contracts, but it is also growing by acquisition and diversifying into new sources of energy. Pat looks at the company’s ability to manage this added risk going forward....

MCCOY CORP. (Toronto symbol MCB; www.mccoyglobal.com) operates through two divisions: Mobile Solutions and Energy Products and Services....

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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