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ALGONQUIN POWER & UTILITIES CORP. $7.42 (Toronto symbol AQN; Shares outstanding: 169.0 million; Market cap: $1.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.2%; www.algonquinpower.com) holds interests in 20 hydroelectric plants in Canada and the northeastern U.S. It also owns seven thermal energy facilities and five wind farms.

Algonquin’s subsidiary, Liberty Utilities, has operations in Arizona, California, Illinois, Iowa, Missouri, New Hampshire and Texas. These include 21 water-distribution and sewage-treatment plants, as well as four natural gas and two electricity distribution operations with over 257,000 customers.

Emera (Toronto symbol EMA), which is a recommendation of The Successful Investor, our conservative growth advisory, holds a 19.9% interest in Algonquin.

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IMPERIAL OIL $43.85 (Toronto symbol IMO; Shares outstanding: 847.6 million; Market cap: $37.2 billion; TSINetwork Rating: Average; Dividend yield: 1.1%; www.imperialoil.ca) reported that its earnings per share jumped 20.8% in the three months ended September 30, 2012, to $1.22 from $1.01 a year earlier.

Cash flow per share rose 18.8%, to $1.52 from $1.28, while revenue gained 4.9%, to $8.3 billion from $7.9 billion.

Maintenance shutdowns and asset sales lowered production by 3.7%, to 285,000 barrels a day. However, earnings from oil refining and distribution (52% of the total) rose 97.1%.

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CANADIAN REIT $44.81 (Toronto symbol REF.UN; Units outstanding: 68.2 million; Market cap: $3.1 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.3%; www.creit.ca) owns over 190 properties, including retail, industrial and office buildings, across Canada and in Chicago. These holdings contain over 19.3 million square feet of leasable area. The trust’s occupancy rate is 94.8%.

In the three months ended September 30, 2012, Canadian REIT’s revenue rose 13.1%, to $94.7 million from $83.7 million a year earlier. Cash flow per unit rose 11.7%, to $0.67 from $0.60.

Canadian REIT added $308.4 million of properties in the first three quarters of 2012, including two office buildings, a further investment in the Dartmouth Crossing (Atlantic Canada’s largest unenclosed mall) and the completion of several development projects. That total also included its $156.0- million purchase of a 50% interest in Calgary Place, a 575,000-square-foot office and retail complex.

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ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $34.39 (Toronto symbol AP.UN; Units outstanding: 64.0 million; Market cap: $2.2 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.0%; www.alliedpropertiesreit.com) owns 126 office buildings, mostly in major Canadian cities. These mainly Class I properties contain over 9.1 million square feet of leasable area.

Class I refers to 19th- and early-20th-century light industrial buildings that have been converted to office and retail space. They usually feature exposed beams, interior brick and hardwood floors.

The trust bought $456 million worth of properties in 2011. In the first three quarters of 2012, it added a further $300 million of acquisitions. Allied has a 92.1% occupancy rate.

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BANK OF NOVA SCOTIA $58.80 (Toronto symbol BNS: Shares outstanding: 1.2 billion; Market cap: $70.6 billion; TSINetwork Rating: Above Average; Div. yield: 3.9%, www.scotiabank.com) is the third-largest of Canada’s five big banks, with assets of $668.0 billion.

The bank earned $1.18 a share in its fiscal fourth-quarter ended October 31, 2012. That’s up 21.6% from $0.97 a share a year earlier. Revenue rose 15.1%, to $4.9 billion from $4.2 billion.

Higher demand for loans and an increase in deposits pushed up the Canadian banking division’s earnings by 14.8%. This includes the contribution of ING Direct, which Bank of Nova Scotia bought for $3.1 billion late last year. ING Direct offers a wide variety of no-fee banking services, mainly over the Internet. It has 1.8 million customers and $30 billion of deposits.

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Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific investment advice on a wide range of topics, including strategies for international stock markets. Each Investor Toolkit update gives you a fundamental piece of investing strategy, and shows you how you can put it into practice right away. Today’s tip: “Foreign investments can strengthen your portfolio and here are 3 ways you can do it with less risk.”...

MOTOROLA SOLUTIONS INC. (New York symbol MSI; www.motorolasolutions.com) makes specialized electronic equipment, such as bar-code scanners and radios for police and fire vehicles. It gets 69% of its revenue by selling its products to governments; the U.S. government is the company’s largest single customer, accounting for 7% of its overall revenue. Businesses supply the remaining 31% of Motorola Solutions’revenue....

BCE INC. $45 (www.bce.ca) purchased The Source chain of 700 mall-based electronic stores in 2009. This ear, it plans to open 20 new outlets. These stores give BCE a low-risk way to promote its mobile phones and TV services. Best Buy.

CANADIAN UTILITIES LTD. $74 (www.canadianutilities.com) has raised its dividend every year since 1972. The new annual rate of $1.94 a share, up 9.6% from $1.77, yields 2.6%. Buy.

ATCO LTD. $83 (www.atco.com) has raised its quarterly dividend by 14.5%, to $0.375 a share from 0.3275. The new annual rate of $1.50 yields 1.8%. The company has raised its dividend each year for the past 20 years. Moreover, at current rices, you can buy a share of ATCO for $83 and get roughly $86 worth of 52.8%-owned subsidiary Canadian Utilities (see below)....

AGRIUM INC. $114 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 149.4 million; Market cap: $17.0 billion; Price-to-sales ratio: 1.1; Dividend yield: 1.8%; TSINetwork Rating: Average; www.agrium.com) has soared 60% in the past year. That’s mainly because activist investment firm Jana Partners wants Agrium to spin off its retail business as a separate company. Jana owns 6% of Agrium’s shares.

The retail division has 1,250 stores in North America, South America and Australia that sell seed, fertilizer and other products to farmers. These outlets supply 60% of Agrium’s revenue. The remaining 40% mainly comes from making fertilizers from natural gas.

Retail stores add stability

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IMPERIAL OIL LTD. $44 (Toronto symbol IMO; Conservative Growth Portfolio; Resources sector; Shares outstanding: 847.6 million; Market cap: $37.3 billion; Price-to-sales ratio: 1.2; Dividend yield: 1.1%; TSINetwork Rating: Average; www.imperialoil.ca) now estimates that the first phase of its 71%-owned Kearl oil sands project will cost $12.9 billion. That’s up 18.3% from its earlier forecast of $10.9 billion. Exxon Mobil Corp. (New York symbol XOM) owns the remaining 29% of Kearl. Exxon also owns 69.6% of Imperial.

Shipping delays and unusually cold winter weather have slowed Kearl’s development and boosted its costs. Imperial now aims to start production by the end of March 2013.

Kearl’s first phase will produce 110,000 barrels a day (Imperial’s share is 78,100 barrels) by the end of 2013. Kearl’s second phase, which will cost $8.9 billion, will add a further 78,100 barrels to Imperial’s daily production by late 2015. To put these figures in context, the company produced an average of 282,000 barrels of oil equivalent a day in 2012.

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CANADA BREAD CO. LTD. $52 (Toronto symbol CBY; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 25.4 million; Market cap: $1.3 billion; Price-to-sales ratio: 0.8; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.canadabread.ca) is closing its bakeries in Grand Falls, New Brunswick, and Edmonton, Alberta. It will shift production from these facilities to other plants.

The company did not say how much these closures will save it. However, it expects to pay $6.3 million in severance and other related costs. That’s equal to 26% of the $24.2 million, or $0.95 a share, that Canada Bread earned in the three months ended September 30, 2012.

Canada Bread is still a hold.

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TRANSCONTINENTAL INC. $12 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 78.2 million; Market cap: $938.4 million; Price-to-sales ratio: 0.4; Dividend yield: 4.8%; TSINetwork Rating: Average; www.tctranscontinental.com) has paid an undisclosed sum for privately held Groupe Modulo, which publishes Frenchlanguage textbooks for schools and universities across Canada.

Many traditional book publishers have suffered due to rising competition from cheaper e-books. However, specialized textbooks are still highly profitable, and the purchase looks like a nice fit with Transcontinental’s current textbook business: it will expand the company’s catalogue of French-language titles to 11,000 from 8,000.

Moreover, adding Groupe Modulo’s high-quality titles would be a plus for Transcontinental if it decides to expand its own electronic-textbook business.

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CAE INC. $11 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 259.2 million; Market cap: $2.9 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.8%; TSINetwork Rating: Average; www.cae.com) recently sold seven flight simulators and related equipment....

TRANSCANADA CORP. $49 (Toronto symbol TRP; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 705.0 million; Market cap: $34.5 billion; Price-to-sales ratio: 4.0; Dividend yield: 3.6%; TSINetwork Rating: Above Average; www.transcanada.com) has received approval from Nebraska’s governor for its plan to reroute the proposed Keystone XL pipeline around environmentally sensitive areas of the state.

The company is currently building Keystone XL in sections. When completed, it would pump oil from Alberta to the U.S. Gulf Coast. The final project still needs various approvals, including from the U.S. State Department. Even so, Nebraska’s consent makes Keystone XL’s approval more likely.

TransCanada is a buy.

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CANADIAN PACIFIC RAILWAY LTD. $113 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 173.9 million; Market cap: $19.7 billion; Price-to-sales ratio: 3.5; Dividend yield: 1.2%; TSINetwork Rating: Above Average; www.cpr.ca) is improving its efficiency with new locomotives and software that optimizes train loads and speeds.

CP’s earnings fell 15.1% in 2012, to $484 million, or $2.79 a share. In 2011, the company earned $570 million, or $3.34 a share. However, if you disregard costs related to CP’s recently announced plan to cut 25% of its workforce, as well as writedowns of locomotives and other assets, its earnings per share would have risen 37.8%, to $4.34 from $3.15. Revenue rose 10.0%, to $5.7 billion from $5.2 billion.

The company’s operating ratio worsened to 83.3% from 81.3% a year ago. However, its restructuring should cut this figure to around 70% in 2013.

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CANADIAN NATIONAL RAILWAY CO. $96 (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 428.4 million; Market cap: $41.1 billion; Price-to-sales ratio: 4.0; Dividend yield: 1.8%; TSINetwork Rating: Above Average; www.cn.ca) earned $2.5 billion in 2012. That’s up 11.9% from $2.2 billion in 2011. The company spent $1.4 billion on share buybacks during the year. Because of fewer shares outstanding, earnings per share rose 15.9%, to $5.61 from $4.84.

Revenue rose 9.9%, to $9.9 billion from $9.0 billion. The company continues to benefit from rising trade between North America and Asia. CN also raised its freight rates and fuel surcharges.

CN’s operating costs rose 9% in 2012, mainly due to higher labour and fuel expenses. Even so, CN’s operating ratio improved to 62.9% from 63.5%. (Operating ratio is calculated by dividing a company’s regular operating costs by its revenue. The lower the ratio, the better.)

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LOBLAW COMPANIES LTD. $41 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 281.5 million; Market cap: $11.5 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.loblaw.ca) is Canada’s largest food retailer, with roughly 1,000 stores. George Weston Ltd. (Toronto symbol WN) owns 63% of the company’s shares.

Loblaw has announced a plan to form a real estate investment trust (REIT) that will hold most of its real estate assets.

Right now, the company owns 47 million square feet of real estate with a market value of $9 billion to $10 billion. Loblaw will transfer 35 million square feet of these properties—including stores, warehouses and office buildings—to the REIT. Loblaw will then rent these properties from this new trust. After the company closes this transaction in mid- 2013, it will sell units of the REIT to the public. Loblaw will hang on to a majority stake.

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MANITOBA TELECOM SERVICES INC. $32 (Toronto symbol MBT; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 67.0 million; Market cap: $2.1 billion; Price-to-sales ratio: 1.2; Dividend yield: 5.3%; TSINetwork Rating: Average; www.mtsallstream.com) gets around 55% of its revenue from its 1.3 million telephone and wireless customers in Manitoba.

The remaining 45% comes from its Allstream division, which sells integrated telephone, Internet and other communication services to businesses across Canada. Manitoba Telecom is now conducting a strategic review of Allstream. This could lead to a sale of some or all of this business.

Allstream is profitable, but while it accounts for almost half of Manitoba Telecom’s revenue, it only contributes 18% of the company’s operating earnings. So selling the division would let Manitoba Telecom expand its more profitable operations.

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TELUS CORP. (Toronto symbols T $68 and T.A $68; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 326.0 million; Market cap: $22.2 billion; Price-to-sales ratio: 2.0; Dividend yield: 3.6%; TSINetwork Rating: Above Average; www.telus.com) has received court approval for its plan to convert its 151 million non-voting class A shares into regular common shares (which have one vote each) on a one-for-one basis.

The company converted the shares in the U.S. on February 4, 2013. The move dilutes common shareholders’ voting power, but it lets the common shares trade on the New York Stock Exchange (symbol TU). Previously, only the non-voting shares traded on New York. The change should make the common shares more liquid. Telus will make the conversion in Canada on February 11, 2013.

Telus A stock is a buy.

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RIOCAN REAL ESTATE INVESTMENT TRUST $27 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 299.0 million; Market cap: $8.1 billion; Price-to-sales ratio: 5.3; Dividend yield: 5.2%; TSINetwork Rating: Average; www.riocan.com) has agreed to buy a mall in Oakville, Ontario, plus 50% of another mall in Burlington, Ontario. Right now, Primaris Retail Real Estate Investment Trust (Toronto symbol PMZ.UN) owns these malls. RioCan will buy them from a consortium that has launched a friendly takeover for Primaris. The $362-million price is equal to 4% of RioCan’s market cap.

The new malls will give RioCan more flexibility to attract tenants with leases that include space in its other Toronto-area malls.

RioCan is a buy.

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BLACKBERRY $16 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 524.0 million; Market cap: $8.4 billion; Price-to-sales ratio: 0.7; No dividends paid; TSINetwork Rating: Above Average; www.blackberry.com) is the new name of Research in Motion Ltd. (old symbol RIM). (Note: The company’s legal name will remain Research in Motion until shareholders approve the name change at the next annual meeting.)

The company recently launched two smartphones powered by its new BlackBerry 10 software: the BlackBerry Z10 uses a 4.2-inch touch-screen interface, while the BlackBerry Q10 features a smaller screen and a physical keyboard.

BlackBerry has already started selling the Z10 in Canada, the U.K. and other countries. The company will launch the new phone in the U.S. in March. It should launch the Q10 in April.

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TIM HORTONS INC. $49 (Toronto symbol THI; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 154.5 million; Market cap: $7.6 billion; Price-to-sales ratio: 2.5; Dividend yield: 1.7%; TSINetwork Rating: Average; www.timhortons.com) is the largest fast-food company in Canada, with 3,365 outlets that mainly serve coffee and donuts. However, the company is attracting new customers with other foods, such as sandwiches and soups.

Tim Hortons’ success in Canada is helping it expand in other countries.

For example, many Tim Hortons outlets now sell ice cream through the company’s alliance with U.S.-based Cold Stone Creamery. That helps them attract more customers in the afternoon and evening. As part of this deal, Cold Stone sells Tim Hortons coffee and other products in its upscale ice cream parlours. In addition, the company continues to build new stores in the U.S.; it now has 755 outlets in that country. Most of Tim Hortons’ U.S. stores are in states along the Canadian border, where they can attract cross-border shoppers.

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MOLSON COORS CANADA INC. (Toronto symbols TPX.A $44 and TPX.B $44; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 181.2 million; Market cap: $8.0 billion; Price-to-sales ratio: 2.3; Dividend yield: 2.9%; TSINetwork Rating: Average; www.molsoncoors.com) continues to benefit from the 2005 merger of Canada’s Molson brewing operations with those of U.S.-based Coors. The combined company later merged its U.S. business with rival Miller Brewing Company.

The ongoing savings from these mergers has helped Molson Coors, which is the world’s seventhlargest brewer by volume, to compete with larger multinational brewers.

Molson Coors now aims to expand in emerging markets, where beer sales are growing faster than its main markets of North America and the U.K. That’s why it paid $3.4 billion for StarBev LP in June 2012. StarBev owns nine breweries in Central and Eastern Europe (all amounts except share prices and market cap in U.S. dollars).

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