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WESTJET AIRLINES $18.00 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1- 877-493-7853; www.westjet.com; Shares outstanding: 126.3 million; Market cap: $2.3 billion; Dividend yield: 1.8%) is now in the process of upgrading its interline agreement with British Airways to a full code-sharing arrangement. This will be WestJet’s eighth code-sharing deal.

Code-sharing agreements let airlines sell seats on one another’s planes using the same two-digit code. In this case, the BA code will be used when travellers on British Airways flights to Vancouver, Calgary and Toronto connect to WestJet-operated flights to Ottawa, Edmonton and Victoria.

Code-sharing agreements are especially valuable for attracting business passengers because they let customers seamlessly connect between flights and gain frequent flyer points for the entire distance travelled.

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DOMINO’S PIZZA $41.20 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3030; www.dominos.com; Shares outstanding: 56.7 million; Market cap: $2.3 billion; No dividends paid) continues to benefit from its new pizza recipes, digital ordering and aggressive international expansion.

The stock jumped over 7% on October 16, 2012, when the company reported higher earnings in the quarter ended September 9, 2012. Earnings per share jumped 22.2%, to $0.44 from $0.36 a year earlier. Same-store sales rose 3.3% in the U.S. and 5.0% internationally.

Domino’s opened its 10,000th store in September. It now has 10,040 outlets in the U.S. and over 70 other countries. Franchisees run most of its stores.

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AIMIA INC. $14.95 (Toronto symbol AIM; TSINetwork Rating: Extra Risk) (514-205-7315; www.aimia.com; Shares outstanding: 172.2 million; Market cap: $2.6 billion; Dividend yield: 4.3%) got its start as Air Canada’s frequent-flyer program in 1984. In 2005, the airline created the Aeroplan Income Fund and began selling units to the public.

The fund converted to a corporation under the Groupe Aeroplan name in 2008. In May 2012, it changed its name to Aimia.

Moving beyond Aeroplan

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Pat McKeough responds to many personal questions on investing in stocks and other investment topics 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 the Inner Circle. This week, one Inner Circle member asked about one of the more recent energy stocks on the scene. This specialist in deep-sea drilling has only been in business for seven years, which gives it the advantage of having modern high-quality rigs that are in demand. Pat assesses the company’s ability to keep adding to its record backlog and maintain its high dividend yield....

Yesterday, I discussed the steps investors can take to put a financial contingency plan in place in case a day comes when they are incapacitated (view the article here). Today I’d like to follow up by dealing with another aspect of investing that looms larger as people grow older. Like a financial contingency plan, it is linked to the legacy you will leave your heirs. Now and then I meet investors who say they are too old to consider the long term in their portfolios, and have switched from stocks to short-term instruments such as T-bills. Sometimes they support this decision with the time-worn one-liner from Ronald Reagan (or was it cigar-smoking comedian George Burns?): “I don’t even buy green bananas anymore.”...

Every Wednesday, we publish our “Investor Toolkit” series on TSI Network....

In September 2011, gold hit an all-time high of $1,900.30 U.S. an ounce. It now trades at around $1,772.50. Gold could well regain its highs and move up even further over the longer term, although it will likely remain volatile. Higher prices would arise from investor fears that inflation or global political and economic instability will hurt key currencies, such as the euro or the U.S. dollar. We feel that it’s okay to hold some gold or silver stocks as part of the Resources component of a well-balanced portfolio, but you’ll want to keep them to a reasonable part of that portfolio....

strong>POTASH CORP. OF SASKATCHEWAN $41 (www.potashcorp .com) has raised its quarterly dividend by 50%, to $0.21 U.S. a share from $0.14 U.S. a share. The new annual rate of $0.84 U.S. yields 2.0%. Rising demand for better food in fast-growing countries like China and India should continue to push up fertilizer prices, and give the company more cash for dividends....

THE WESTAIM CORP. $0.03 (www.westaim.com) has completed its sale of wholly owned subsidiary Jevco Insurance, which sells insurance to high-risk drivers. Westaim distributed the proceeds of $0.75 a share to its shareholders as a return of capital. As a result, this distribution is tax-deferred: you are only liable for capital gains taxes when you sell your shares....

MAPLE LEAF FOODS INC. $11 (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 140.0 million; Market cap: $1.5 billion; Price-to-sales ratio: 0.3; Dividend yield: 1.5%; TSINetwork Rating: Average; www.mapleleaf.ca) is Canada’s largest foodprocessing company. It mainly makes its products, which include fresh and prepared meats and poultry, under the Maple Leaf and Schneider brands. This business accounts for 60% of Maple Leaf’s revenue.

The company also makes fresh and frozen bread, pastries and pasta through its 90.0% stake in Canada Bread Co. Ltd., which supplies 35% of Maple Leaf’s revenue. The remaining 5% comes from the company’s agribusiness division, which raises hogs for its processed-meat operations. This division also recycles animal by-products into other materials,such as soaps and biodiesel fuel.

Restructuring slowed sales growth

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ANDREW PELLER LTD. $9.85 (Toronto symbol ADW.A; Income Portfolio, Consumer sector; Shares outstanding: 14.3 million; Market cap: $140.9 million; Price-to-sales ratio: 0.5; Dividend yield: 3.7%; TSINetwork Rating: Above Average; www.andrewpeller.com) reported that its sales rose 4.7% in the three months ended June 30, 2012, to $72.7 million from $69.4 million a year earlier. The company launched a number of new wines and is seeing rising demand for its high-margin premium brands. A new 10-year deal to make and distribute wines under the Wayne Gretzky brand also contributed to the higher sales.

Peller earned $4.7 million, or $0.34 a share, in the quarter. That’s up 19.2% from $3.9 million, or $0.28 a share. If you exclude gains on hedging contracts that the company uses to lock in foreignexchange rates, earnings would have risen 7.0%.

Andrew Peller is a buy.

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SNC-LAVALIN GROUP INC. $38 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 151.0 million; Market cap: $5.7 billion; Price-to-sales ratio: 0.8; Dividend yield: 2.3%; TSINetwork Rating: Average; www.snclavalin.com) is facing a class-action lawsuit over $56 million U.S. in unusual payments to agents it hired to secure certain construction contracts. The stock fell nearly 20% when the company disclosed these payments in March 2012. The news also prompted SNC’s chief executive officer to quit.

These payments are small next to the $378.8 million (Canadian), or $2.49 a share, that SNC earned in 2011. But even so, the lawsuit is seeking $1 billion in damages. However, lawsuits like this are difficult to prove. Moreover, it would probably take years for the case to come to court.

The matter has had little impact on SNC’s ability to win new contracts. For example, the B.C. government has selected a consortium headed by SNC to design and build an 11-kilometre light-rail rapid transit line near Vancouver.

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IGM FINANCIAL INC. $37 (Toronto symbol IGM; Conservative Growth Portfolio, Finance sector; Shares out- standing: 255.1 million; Market cap: $9.4 billion; Price-to-sales ratio: 3.6; Dividend yield: 5.8%; TSINetwork Rating: Above Average; www.igmfinancial.com) reports that it had $119.7 billion of assets under management, including mutual fund assets, as of September 30, 2012. That’s an increase of 2.5% from $116.7 billion a year earlier.

IGM’s fee income rises and falls with the value of the mutual funds and other securities it manages, so the company’s revenue and earnings benefit when the value of these assets rises. If markets continue to rise—as we think they will—IGM’s share price should also gain. Moreover, low interest rates will probably continue to spur investors to shift from fixed-income investments to equity-based mutual funds over the next few months.

IGM Financial is a buy.

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GLOBAL X COPPER MINERS ETF $11.31 (New York symbol COPX; buy or sell through brokers; www.globalxfunds.com) tracks the Solactive Global Copper Miners Index, which includes between 20 and 40 international companies that mine, refine or explore for copper. Germany-based Structured Solutions AG created this index.

Canadian companies make up 38.1% of the fund’s holdings. It also includes companies based in the U.S. (11.2%), Australia (8.8%) and Mexico (5.7%), Global X Copper Miners ETF’s MER is 0.65%.

Its top 10 holdings are Southern Copper Corporation at 5.9%, Lundin Mining, 5.8%; KGHM Polska Miedz, 5.7%, Antofagasta plc, 5.6%; Grupo Mexico, 5.6%; Freeport Copper, 5.5%; Jiangxi Copper Company, 5.2%; First Quantum Minerals, 5.2%; Xstrata, 4.8%; and Capstone Mining, 4.7%.

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GLOBAL X SILVER MINERS ETF $21.80 (New York symbol SIL; buy or sell through brokers; www.globalxfunds.com) tracks the Solactive Global Silver Miners Index.

This index includes between 20 and 40 international companies that mine, refine or explore for silver. Germany-based Structured Solutions AG developed
this index.

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ISHARES S&P/TSX GLOBAL GOLD INDEX FUND $19.69 (Toronto symbol XGD; buy or sell through brokers; ca.ishares.com) aims to mirror the performance of the S&P/TSX Global Gold Index.

This index is made up of 58 gold stocks from Canada and around the world. The fund’s MER is 0.55%. iShares S&P/TSX Global Gold Index Fund began trading on March 23, 2001.

The fund’s top 10 holdings are Barrick Gold at 16.0%; Goldcorp., 13.8%; Newmont Mining, 10.5%; Yamana Gold, 5.3%; AngloGold Ashanti (ADR), 5.1%; Kinross, 4.2%; Eldorado Gold, 3.9%; Randgold Resources, 3.9% Gold Fields (ADR), 3.7%; and Agnico-Eagle Mines, 3.4%.

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ENBRIDGE INC. $38.65 (Toronto symbol ENB; Shares outstanding: 796.9 million; Market cap: $30.8 billion; TSINetwork Rating: Above Average; Dividend yield: 2.9%; www.enbridge.com) recently finished repairing its leaking oil pipeline in Wisconsin.

The company has faced criticism over leaks like this. That could hurt its proposed $5.5- billion Northern Gateway project, which would pump oil from Edmonton to Kitimat, B.C.

However, Enbridge still has a strong safety record, and it has pledged to spend an extra $500 million on safety for Northern Gateway. This investment includes thicker steel at river crossings, 50% more inspections and aroundthe- clock staffing at remote pumping stations.

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CENOVUS ENERGY $31.99 (Toronto symbol CVE; Shares outstanding: 754.7 million; Market cap: $24.1 billion; TSINetwork Rating: Extra Risk; Dividend yield: 2.8%; www.cenovus.com) operates three oil sands projects in Alberta and one in Saskatchewan. The company ships the heavy bitumen from these assets to refineries in Illinois and Texas. ConocoPhillips (New York symbol COP) owns 50% of these refineries and 50% of Cenovus’s two main oil sands projects. Cenovus also owns conventional oil and natural gas properties.

In the three months ended June 30, 2012, Cenovus’s cash flow per share fell 1.6%, to $1.22 from $1.24 a year earlier. Lower oil prices offset a 27.8% increase in production, to 155,566 barrels of oil per day from 121,762 barrels.

Cenovus has started producing oil at the fourth phase of its Christina Lake oil sands project in Alberta. The startup is three months ahead of schedule and within budget. ConocoPhillips owns 50% of Christina Lake.

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ENCANA CORP $21.36 (Toronto symbol ECA; Shares outstanding: 736.3 million; Market cap: $15.7 billion; TSINetwork Rating: Average; Dividend yield: 3.9%; www.encana.com) is one of North America’s largest natural gas producers. Its reserves should last over 11 years.

Encana’s cash flow was $1.08 a share in the three months ended June 30, 2012 (all amounts except share price and market cap in U.S. dollars). That’s down 27.0% from $1.48 a share, a year earlier.

Natural gas accounts for 95% of Encana’s production. In response to falling gas prices, the company lowered its output during the quarter; this was the main reason for the lower cash flow.

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LOBLAW CO. $34.12 (Toronto symbol L; Shares outstanding: 281.4 million; Market cap: $9.6 billion; TSINetwork Rating: Above Average; Dividend yield: 2.5%; www.loblaw.ca) continues to invest in new computers as part of a far-reaching plan to improve its efficiency and avoid product shortages in its stores.

In the three months ended June 16, 2012, the company spent $20 million on these initiatives. That’s the main reason why its earnings fell 19.3% in the quarter, to $159 million, or $0.57 a share, from $197 million, or $0.70 a share, a year earlier.

Sales rose 1.3%, to $7.4 billion from $7.3 billion. Overall sales at its supermarkets rose 1.1%, while same-store sales rose 0.2%. Revenue from its financial-services division, which mainly issues credit cards, rose 14.9%.

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MARKET VECTORS VIETNAM ETF $16.84 (New York symbol VNM; buy or sell through brokers) holds shares of Vietnamese companies or foreign firms that get a significant amount of their revenue from Vietnam.

The ETF’s top 10 holdings are Vietin Commercial Bank, 8.1%; Vincom Corp. (real estate), 7.4%; PetroVietnam Fertilizer and Chemical, 7.2%; Talisman Energy (a Canadian producer with interests off Vietnam’s coast), 6.5%; JSC Bank, 5.9%; Premier Oil (a U.K.-based producer with a 53.1% stake in the huge Chim Sao oil project off southern Vietnam), 5.3%; Oil & Natural Gas Corp. (an India-based oil and gas company), 5.1%; Baoviet Holdings (finance and insurance), 4.7%; Gamuda Bhd (a Malaysiabased construction group), 4.6%; and Charoen Pokp-hand Foods (a Thailand-based food conglomerate),4.2%.

Market Vectors Vietnam ETF’s industry breakdown is as follows: Financials, 44.0%; Energy, 26.4%; Industrials, 11.2%; Materials, 7.9%; Consumer Discretionary, 4.3%; Consumer Staples, 4.1%; and Utilities, 2.2%. Its expense ratio is 0.76%.

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ISHARES FTSE/XINHUA CHINA 25 INDEX FUND $32.17 (New York symbol FXI; buy or sell through brokers) is an ETF that aims to track the FTSE/Xinhua China 25 Index, which is made up of the 25 largest and most liquid Chinese stocks. All of the stocks in the index trade on the Hong Kong exchange. Some also trade as American Depositary Receipts (ADRs) on the New York exchange.

The fund’s top holdings are China Mobile, 10.3%; China Construction Bank, 8.4%; Industrial & Commercial Bank, 7.6%; CNOOC, 7.0%; Bank of China, 5.9%; China Telecom, 4.8%; China Unicom (Hong Kong), 4.6%; China Life Insurance, 4.6%; China Shenhua, 4.3%; and China Petroleum and Chemical, 4.0%.

The fund’s holdings give it the following industry breakdown: Financials, 53.1%; Telecommunications, 19.7%; Oil and Gas, 14.6%; Basic Materials, 9.8%; and Industrials, 1.9%. Its expense ratio is 0.72%.

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TORSTAR CORP. $8.54 (Toronto symbol TS.B; Shares outstanding: 79.9 million; Market cap: $680.7 million; TSINetwork Rating: Above Average; Dividend yield: 6.2%; www.torstar.com) continues to add to its growing number of Internet businesses.

The company recently paid an undisclosed sum for TargetVacations.ca, a website that lets users buy vacation packages and book flights, cruises and hotel rooms.

This purchase looks like a nice fit with Jaunt.ca, Torstar’s other travel-related website.

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VANGUARD GROWTH ETF $71.07 (New York symbol VUG; buy or sell through brokers) aims to track the MSCI U.S. Prime Market Growth Index, a broadly diversified index that mainly consists of shares of large U.S. companies. Its MER is just 0.10%.

The $25.2-billion fund’s top holdings are Apple, IBM, Google, Coca-Cola, Microsoft, Philip Morris International, Oracle, Wal-Mart, Schlumberger and Qualcomm.

Vanguard Growth ETF’s breakdown by industry is as follows: Information Technology (32.2%), Consumer Discretionary (18.1%), Industrials (11.8%), Consumer Staples (11.6%), Health Care (10.2%), Energy (6.5%), Financials (5.3%), Materials (3.8%), Telecommunication Services (0.4%) and Utilities (0.1%).

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VANGUARD EMERGING MARKETS ETF $39.71 (New York symbol VWO; buy or sell through brokers) aims to track the MSCI Emerging Markets Index, which is made up of common stocks of companies located in developing countries around the world. The fund has an MER of just 0.20%.

Vanguard Emerging Markets ETF’s top holdings include Samsung Electronics Co. (South Korea), China Mobile (China: wireless), Petroleo Brasileiro SA (Brazil: oil and gas), Taiwan Semiconductor (Taiwan: computer chips), Vale SA (Brazil: mining), America Movil SAB de CV (Latin America: wireless), Gazprom (Russia: gas utility), China Construction Bank, Itau Unibanco Holding SA (Brazil: banking), Industrial & Commercial Bank of China, CNOOC Ltd. (China: oil and gas) and China Life Insurance.

The $65.7-billion fund’s breakdown by country is as follows: China (17.4%), South Korea (15.2%), Brazil (15.1%), Taiwan (10.9%), South Africa (7.4%), India (7.3%), Russia (7.1%), Mexico (4.4%), Malaysia (3.2%), Indonesia (2.8%), Thailand (1.9%), Poland (1.7%), Chile (1.6%), Turkey (1.3%) and Other (2.7%).

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