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CHEMTRADE LOGISTICS INCOME FUND $17.15 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics- .com; Units outstanding: 41.7 million; Market cap: $710.0 million; Dividend yield: 7.1%) 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 December 31, 2012, Chemtrade’s revenue fell 9.8%, to $223.0 million from $247.2 million a year earlier. The decline mostly reflects lower prices for sulphuric acid on international markets. However, cash flow per unit rose 13.1%, to $0.69 from $0.61.
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INTACT FINANCIAL CORP. $64.30 (Toronto symbol IFC; TSINetwork Rating: Speculative) (416-341-1464; www.intactfc.com; Shares outstanding: 129.6 million; Market cap: $8.6 billion; Dividend yield: 2.7%) is Canada’s largest provider of property and casualty insurance, based on premiums.

In the three months ended December 31, 2012, Intact’s revenue rose 7.2%, to $1.69 billion from $1.58 billion a year earlier.

Before one-time items, Intact earned $1.51 a share in the quarter, up 32.5% from $1.14 a share a year earlier. The insurance business was helped by generally favourable weather. The company also saw higher gains on its investments in the latest quarter.
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INTUITIVE SURGICAL $509.33 (Nasdaq symbol ISRG; TSINetwork Rating: Average) (515-507-5000; www.intuitivesurgical.com; Shares outstanding: 40.1 million; Market cap: $20.7 billion; No dividends paid) makes the da Vinci, a computerized surgical system.

Intuitive fell as low as $493 a share on February 28, 2013, from $570. However, it has since regained a lot of that decline.

The shares fell on a report that the U.S. Food and Drug Administration (FDA) sent out surveys asking surgeons to detail any complications they may have seen with surgeries performed using the da Vinci. The FDA also asked them which procedures they think the system is best and least suited for, and also to describe their training.
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AASTRA TECHNOLOGIES $19.79 (Toronto symbol AAH; TSINetwork Rating: Speculative) (905- 760-4200; www.aastra.com; Shares outstanding: 11.8 million; Market cap: $234.6 million; Dividend yield: 4.1%) reported revenue of $175.2 million in the three months ended December 31, 2012. That was down 12.3% from $199.7 million a year earlier.

Sales declined in all regions, including Western Europe, where Aastra gets the majority of its revenue. Excluding the impact of foreign exchange rates, sales declined 7.1% from a year earlier.

Earnings per share rose sharply, to $2.42 from $1.30, due to a number of one-time items, including income-tax recoveries. Without those items, Aastra would have earned $1.15 a share in the latest quarter.
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WYNDHAM WORLDWIDE $62.70 (New York symbol WYN; TSINetwork Rating: Extra Risk) (973-753-6000; www.wyndhamworldwide.com; Shares outstanding: 136.6 million; Market cap: $8.5 billion; Dividend yield: 1.9%) reports that its revenue rose 9.4% in the three months ended December 31, 2012, to $1.09 billion from $1.0 billion a year earlier. Higher vacation bookings helped push up the company’s occupancy rate by 2.6%.

Before one-time items, the hotel and resort operator’s earnings rose 34.0%, to $0.63 a share from $0.47.

The company has increased its quarterly dividend by 26.1%, to $0.29 from $0.23 a share. The shares now yield 1.9%.
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DOREL INDUSTRIES $39.73 (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: 3.0%) 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 December 30, 2012, Dorel’s sales rose 10.9%, to $622.6 million from $561.6 million a year earlier (all figures except share price and market cap in U.S. dollars). Excluding onetime items, earnings per share jumped 37.0%, to $0.63 from $0.46.

The home furnishing division’s revenue rose 7.5% on higher sales of imported furniture, mattresses and futons. The juvenile division’s revenue gained 11.6%, partly due to contributions from recent acquisitions, including Dorel Chile and distributors of children’s products in Colombia and Panama. Strong sales of new bicycle models helped push up the recreational/leisure division’s sales by 12.0%. Sales of the company’s premium Cannondale bicycles were particularly strong.
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STANTEC INC. $43.25 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288; www.stantec.com; Shares outstanding: 46.0 million; Market cap: $2.0 billion; Dividend yield: 1.5%) sells a range of consulting, project delivery, design and technology services. Stantec’s clients operate in a variety of industries, including transportation, construction and oil and gas.

In the three months ended December 31, 2012, Stantec’s revenue rose 13.3%, to $483.9 million from $432.0 million a year earlier. Acquisitions were one reason for the increase. Stantec is also working on several new projects. Earnings rose 28.0%, to $31.1 million, or $0.67 a share, from $24.3 million, or $0.53.

Stantec continues to grow by acquisition, including purchases of seven companies in 2012. Its most recent addition was Landmark Survey and Mapping, a 24- person firm specializing in surveying and mapping for pipelines. Stantec sees major growth potential in the oil and gas and mining industries.
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HECLA MINING COMPANY $4.21 (New York symbol HL; TSINetwork Rating: Extra Risk) (208-769-4100; www.hecla-mining.com; Shares outstanding: 285.2 million; Market cap: $1.3 billion) is now purchasing Canadian mining company Aurizon Mines Ltd. (Toronto symbol AZK) for $796 million. Aurizon shareholders can choose to receive $4.75 a share in cash or 0.9953 of a Hecla share.

In January 2013, Aurizon rejected a takeover offer from Alamos Gold (Toronto symbol AGI), which held 14% of Aurizon’s stock. Alamos offered 0.2801 of its shares for each Aurizon share. However, Alamos’s shares have dropped since the offer, which is now worth $4.00 per Aurizon share, based on Alamos’s current price of $14.29.

Hecla expects its current mines to produce 8 million to 9 million ounces of silver this year, while Aurizon forecasts 125,000 to 130,000 ounces of gold production at its Casa Berardi mine in Quebec. Aurizon is also developing other gold properties.
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ENERFLEX LTD., $13.01 (Toronto symbol EFX; TSINetwork Rating: Extra Risk) (403-387-6377; www.enerflex.com; Shares outstanding: 77.7 million; Market cap: $1.0 billion; Dividend yield: 2.2%) rents and sells equipment and services for natural gas production, including compression and processing plants, refrigeration equipment and power generators.

The company has a strong position in three expanding markets: U.S. and Canadian shale gas production; Australian natural gas from coal beds; and conventional Middle Eastern natural gas, which is converted to liquefied natural gas (LNG) for shipping.

In the quarter ended December 31, 2012, Enerflex’s revenue rose 9.8%, to $421.6 million from $383.8 million a year ago. Earnings per share rose 59.1%, to $0.35 from $0.22, due to the higher revenue and improved profit margins.
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ACI WORLDWIDE $47 (Nasdaq symbol ACIW; TSINetwork Rating: Speculative) (402- 334-5101; www.tsainc.com; Shares outstanding: 39.4 million; Market cap: $1.9 billion; No dividends paid) reported 66.0% higher revenue in the three months ended December 31, 2012, to $224.1 million from $135.0 million a year earlier. The February 2012 acquisition of S1Corp. was the main reason for the gain. Without one-time items, earnings per share jumped 80.3%, to $1.37 from $0.76.

The company’s outlook is positive, and it is well positioned to profit from global growth in payment processing. However, the stock is up over 23% since November 2012 and now trades at a high 29.4 times the company’s forecast 2013 earnings of $1.60 a share.

ACI Worldwide is a hold.

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ADOBE SYSTEMS $41.59 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 498.8 million; Market cap: $20.8 billion; No dividends paid) makes software that lets computer users create, edit and share documents in the popular PDF format. As well, graphic designers use its software to create print publications and web pages.

Excluding one-time items, Adobe’s earnings fell 7.4% in the three months ended November 30, 2012, to $307.9 million from $332.6 million a year earlier. Earnings per share declined 9.0%, to $0.61 from $0.67, on more shares outstanding.

Revenue was flat at $1.15 billion, although it did exceed the consensus estimate of $1.1 billion. The company continues to spend over 17% of its revenue on research.
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FAIR ISAAC CORP. $45.42 (New York symbol FICO; TSINetwork Rating: Average) (415-472-2211; www.fairisaac.com; Shares outstanding: 35.5 million; Market cap: $1.6 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 the three months ended December 31, 2012, Fair Isaac’s earnings per share before one-time items fell 6.4%, to $0.88 from $0.94. But that still beat the consensus estimate of $0.73. Revenue rose 11.5%, to $190.0 million from $170.3 million.

Revenue rose thanks to the contribution of recently acquired Adeptra, which makes systems that let businesses communicate with customers through a range of channels, including voice, instant messaging, mobile applications and email. However, Fair Isaac earned lower profit margins on Adeptra’s products, which depressed its earnings.
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TRILOGY ENERGY CORP. $30.03 (Toronto symbol TET; TSINetwork Rating: Speculative) (403-290-2900; www.trilogy.com; Shares outstanding: 116.7 million; Market cap: $3.5 billion; Dividend yield: 1.4%) is up over 18% since it reported improved production and cash flow.

In the three months ended December 31, 2012, Trilogy produced an average of 35,014 barrels of oil equivalent per day (including natural gas). That was up 23.8% from 28,288 barrels a day a year earlier. Trilogy’s daily production should rise to an average of 41,000 barrels for all of 2013.

Cash flow per share rose 31.4%, to $0.67 from $0.51 a year earlier, due to the increased production and higher oil prices.
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CIMAREX ENERGY $74.03 (New York symbol XEC; TSINetwork Rating: Extra Risk) (303-295-3995; www.cimarex.com; Shares outstanding: 86.4 million; Market cap: $6.2 billion; Dividend yield: 0.8%) produces and explores for oil and natural gas. Gas makes up 49% of its output.

Cimarex’s properties are in the Mid-Continent region of the U.S., which includes Oklahoma, Kansas and Texas (52% of production); the Permian Basin of western Texas and southeastern New Mexico (43%); and the Texas Gulf Coast (5%).

In the three months ended December 31, 2012, Cimarex’s production averaged 676.7 million cubic feet of natural gas equivalent per day (including oil). That’s up 12.5%, from 601.4 million cubic feet a year earlier. Thanks to the higher production, Cimarex’s cash flow per share fell just 4.2%, to $3.46 from $3.61, despite lower oil and gas prices.
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DEVON ENERGY CORP. $55.69 (New York symbol DVN; TSINetwork Rating: Speculative) (405-235- 3611; www.dvn.com; Shares outstanding: 406.0 million; Market cap: $22.7 billion; Dividend yield: 1.6%) is one of the largest U.S.-based oil and natural gas explorers and producers. Its production mix is 61% gas and 39% oil.

In 2011, Devon sold all of its international and Gulf of Mexico properties, which it saw as risky and expensive to develop. The company is now focused on its North American projects, which include conventional production, shale oil in Texas and oil sands in Alberta.

Devon has formed joint ventures to cut the risk of its big development projects. Last year, it sold a onethird stake in five shale oil and gas fields to giant Chinese state-owned petroleum and chemical company Sinopec for $2.2 billion. As well, Japan’s Sumitomo Corp. bought 30% of the Cline and Wolfcamp shales in Texas for $1.4 billion.
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DOMINO’S PIZZA $49.82 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3030; www.dominos.com; Shares outstanding: 56.4 million; Market cap: $2.8 billion; Dividend yield: 1.6%) continues to expand internationally.

It just opened its first store in Thailand, in the city of Bangkok, and plans to add more outlets in the country in the next few years.

Domino’s now operates in over 70 markets worldwide. Its international stores supply almost half of its sales and about a third of its earnings.
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SYMANTEC CORP. $24.54 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (1-408-517-8000; www.symantec.com; Shares outstanding: 689.2 million; Market cap: $16.9 billion; No dividends paid) sells computersecurity technology, including anti-virus and email-filtering software, to businesses and consumers. It also offers data-archiving software.

Symantec’s shares continue to rise on better-than-expected earnings and a new restructuring plan that should improve the company’s longterm profitability.

In its fiscal 2013 third quarter, which ended December 28, 2012, Symantec’s revenue rose 4.4%, to a record $1.8 billion from $1.7 billion a year earlier. That’s mainly because its business clients are buying more of its data-security and storage services.
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PROCTER & GAMBLE CO. (New York symbol PG; www.pg.com) is one of the world’s largest makers of household and personal-care products. Its top brands include Tide detergent, Crest toothpaste, Head & Shoulders shampoo and Pampers diapers. The company faces rising competition from generic brands. Last year, it responded with a major restructuring plan, which mainly involves cutting 5% of its workforce and closing plants....

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 advice on a wide range of investing topics, including trading stocks online. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put it into practice right away. Tip of the week: “Online trading seems like an easy and convenient way to invest, but that can also make it an easy way to lose money.”...

We think conservative investors could hold up to 10% of their portfolios in foreign stocks. One way to do that is to buy carefully chosen exchange traded funds (ETFs) that have an overseas focus. The best ETFs offer very low management fees and well-diversified, tax-efficient portfolios of high-quality stocks. ISHARES MSCI SOUTH KOREA INDEX FUND (New York Exchange symbol EWY; buy or sell) is an exchange traded fund that aims to track the MSCI Korea Index....

AMAZON.COM (Nasdaq symbol AMZN; www.amazon.com) is a major online retailer. It gets about 33% of its sales from books, music and videos. Other products, including electronics, computer games and toys, make up the other 67%. Amazon Marketplace lets other companies sell their products through Amazon’s websites....

Pat McKeough responds to many personal questions about the best stocks to invest in and other topics 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, one Inner Circle member in search of a U.S. stock asked us about one of the most iconic brands on the American market, Coca-Cola. Pat looks at the company’s penetration of international markets and its efforts to broaden its market with healthier products, while taking into account the increasing appeal of private-label beverages to price-conscious consumers. ...

Hidden value is one of the key factors we examine when we look for top stocks. A company’s brand name is one good example of an underappreciated asset. Balance sheets often fail to assign any value to brands, even household names that have built up multitudes of loyal customers over the years. Two weeks ago we looked at the value of the brand of Canada’s best known tech company. (View the article here.) Today we examine another company whose strong brand is helping it grow internationally. THOMSON REUTERS CORP. (Toronto symbol TRI; www.thomsonreuters.com) gets 57% of its revenue and 50% of its earnings by selling news and information to professionals in the banking industry. It also sells specialized information products to clients in the legal, accounting and scientific research fields....

ALGONQUIN POWER & UTILITIES CORP. $7.63 (Toronto symbol AQN; Shares outstanding: 175.0 million; Market cap: $1.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.2%; www.algonquinpower.com) has received approval from regulators to complete its purchase of a natural gas distribution utility in Georgia for $147.0 million U.S.

This utility serves 64,000 consumers. The purchase is scheduled to close on April 1, 2013.

Algonquin will borrow funds to pay for 50% of this business and will issue shares for the other 50%. Emera which is a recommendation of The Successful Investor, our conservative growth advisory, will buy enough of these new shares to keep its interest in Algonquin at 19.9%.

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ISHARES MSCI BRAZIL INDEX FUND $55.03 (New York Exchange symbol EWZ; buy or sell through brokers) is an exchange traded fund that is designed to track the Brazilian stock market. The fund’s top holdings are Cia Itau Unibanco Holding (banking), 8.1%; Vale do Rio Doce (mining) preferred, 7.2%; Petrobras common, 7.2%; Banco Brandesco (banking) preferred, 6.7%; Cia de Bebidas das Americas (beer and beverages), 6.7%; and Vale SA, 3.8%.

The fund’s focus on the resource sector and its concentration in certain stocks, such as Petrobras and Vale do Rio Doce, add risk. However, both are high-quality stocks.

Brazil’s economy is forecast to grow at a rate of 3.1% this year. Domestic consumption is recovering, although exports remain slow. Growth could be as high as 3.7% next year.

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