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ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $31.60 (Toronto symbol AP.UN; Units outstanding: 60.0 million; Market cap: $1.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.2%; www.alliedpropertiesreit.com) owns 119 office buildings, mostly in major Canadian cities. These mainly Class I properties contain over 8.3 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.

In 2011, the trust bought 22 properties for $456 million. In the first half of 2012, it bought 14 buildings for $175.0 million. Allied has an occupancy rate of 92.3%.

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ISHARES AUSTRALIA INDEX FUND $24.58 (New York symbol EWA; buy or sell through brokers) is an ETF that holds the 71 largest Australian stocks. Its MER is 0.52%.

The fund’s top holdings include BHP Billiton, 12.1%; Commonwealth Bank of Australia, 10.1%; Westpac Banking Corp., 8.6%; Australia and New Zealand Banking Group, 7.5%; National Australia Bank, 6.5%; Woolworths, 4.0%; Wesfarmers, 3.8%; Rio Tinto, 2.7%; CSL Ltd., 2.6%; and Westfield Group, 2.5%.

Australia benefits from its stable banking and political systems. It is also rich in natural resources, and it’s close to key Asian markets with vast potential, including India and China.

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TRANSCANADA CORP. $44.97 (Toronto symbol TRP; Shares outstanding: 704.9 million; Market cap: $31.7 billion; TSINetwork Rating: Above Average; Dividend yield: 3.9%; www.transcanada.com) has formed a new 50/50 joint venture with privately held Phoenix Energy Holdings Ltd.

The partners plan to build a 500-kilometre pipeline that would pump crude from Phoenix’s oil sands properties in northern Alberta to Edmonton. TransCanada will operate the new line.

TransCanada’s share of the project’s $3.0-billion cost is $1.5 billion. The partners aim to begin construction in 2014, and the line should start up in early 2017.

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LOBLAW COMPANIES $34.62 (Toronto symbol L; Shares outstanding: 281.4 million; Market cap: $9.7 billion; TSINetwork Rating: Above Average; Dividend yield: 2.4%; www.loblaw.ca) is cutting 700 jobs, or about 1% of its overall workforce. Most of these positions are administrative and are not at its 1,000 supermarkets across Canada.

Severance payments and other costs will total $60 million. To put that in context, Loblaw earned $159 million, or $0.57 a share, in the three months ended June 16, 2012.

The company did not say how much these job cuts would save it. However, the resulting lower costs will help it compete with big U.S. retailers like Wal-Mart and Target, which are aggressively expanding in Canada.

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ISHARES MSCI BRAZIL INDEX FUND $53.35 (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 Petrobras preferred shares (energy), 9.8%; Vale do Rio Doce (mining) preferred, 7.9%; Petrobras common, 7.3%; Cia Itau Unibanco Holding (banking), 7.1%; Banco Brandesco (banking) preferred, 6.4%; and Vale SA, 3.9%.

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

Brazil’s economy is forecast to grow at just 1.5% this year. Domestic consumption remains strong, but exports have slowed. Still, growth could rebound to as high as 4.0% next year.

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ISHARES MSCI CHILE INVESTABLE MARKET INDEX FUND $61.55 (New York Exchange symbol ECH; buy or sell through brokers) is an ETF that aims to track the MSCI Chile Investable Market Index, which consists of stocks that are mainly traded on the Santiago Stock Exchange.

The fund’s top holdings are LATAM Airlines SA, 9.4%; Empresas Copec SA (conglomerate), 8.3%; Quimica y Minera de Chile (mining), 6.6%; Empresa Nacional de Electricidad (electricity), 6.4%; Cencosud SA (retailer), 6.2%; Banco Santander Chile (banking), 5.7%; Enersis AS (electricity), 5.4%; S.A.C.I. Falabella (retail), 5.2%; and Empresas CMPC (pulp and paper), 4.7%.

The fund’s industry breakdown is as follows: Utilities, 23.2%; Industrials, 20.6%; Financials, 17.2%; Materials, 15.5%; Consumer Staples, 11.2%; Consumer Discretionary, 6.3%; Telecommunications, 3.7%; and Information Technology, 1.7%.

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ISHARES MSCI GERMANY FUND $22.94 (New York Exchange symbol EWG; buy or sell through brokers) tracks the stocks in the MSCI Germany Index.

This index aims to replicate 85% of the total market capitalization of the German stock market. The remaining 15% is unavailable for investment, partly due to limitations on foreign ownership.

The ETF’s top holdings are Siemens (engineering conglomerate), 9.2%; BASF (chemicals), 8.5%; Bayer (diversified chemicals), 8.0%; SAP (software), 7.4%; Allianz (insurance), 6.2%; E.ON (energy), 4.6%; Deutsche Bank, 4.5%; Deutsche Telekom, 3.6%; and Linde AG (industrial gases), 3.5%.

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ISHARES MSCI SOUTH KOREA INDEX FUND $57.58 (New York Exchange symbol EWY; buy or sell through brokers), is an exchange traded fund that aims to track the MSCI Korea Index.

The ETF’s top holdings are Samsung Electronics, 21.9%; Hyundai Motor Co., 6.0%; Posco (steel), 3.8%; Hyundai Mobis (auto parts), 3.3%; Kia Motors, 2.9%; Shinhan Financial, 2.6%; SK Hynix Semiconductor, 2.4%; LG Chemical, 2.3%; KB Financial, 2.3%; and NHN (Internet content), 1.8%.

The fund’s industry breakdown is as follows: Information Technology, 32.4%; Consumer Discretionary, 17.8%; Financials, 13.4%; Industrials, 13.2%; Materials, 10.9%; Consumer Staples, 5.9%; Energy, 3.1%; Utilities, 1.6%; Telecommunication Services, 0.9%; and Health Care, 0.8%.

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ISHARES MSCI EMERGING MARKETS INDEX FUND $41.15 (New York symbol EEM; buy or sell through brokers), is an exchange traded fund that aims to track the MSCI Emerging Markets Index. Its geographic breakdown includes China, 17.6%; South Korea, 14.9%; Brazil, 12.7%; Taiwan, 10.5%; South Africa, 7.7%; India, 6.8%; Russia, 6.0%; Mexico, 5.2%; Malaysia, 3.8%; and Indonesia, 2.8%.

The fund’s top holdings are Samsung Electronics (South Korea), 3.7%; China Mobile, 1.9%; Taiwan Semiconductor (computer chips), 1.9%; China Construction Bank, 1.5%; America Movil (Brazil: wireless), 1.5%; Gazprom (Russia: gas utility), 1.4%; Petrobras (Brazil: energy), 1.3%; and Industrial & Commercial Bank of China, 1.2%.

The fund’s industry breakdown is as follows: Financials, 25.0%; Information Technology, 13.4%; Energy, 13.1%; Materials, 11.6%; Consumer Staples, 8.9%; Consumer Discretionary, 8.1%; Telecommunication Services, 8.1%; and Industrials, 6.7%.

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Pat McKeough responds to many personal questions about specific 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. Recently, we received a question from an Inner Circle member about one of the world’s most visible technology stocks, Internet giant Yahoo. Pat discusses the state of the company following its recent hiring of a new CEO away from its most powerful rival, Google. Pat also took the opportunity to compare the prospects of both of these Internet giants....

PENN WEST PETROLEUM $12.97 (Toronto symbol PWT; Shares outstanding: 472.9 million; Market cap: $6.1 billion; TSINetwork Rating: Average; Dividend yield: 8.3%) has agreed to sell $1.3 billion worth of non-core properties. In all, these produce about 12,000 barrels per day.

To put that figure in perspective, it’s 7.4% of the 163,181 barrels a day that Penn West produced in the quarter ended June 30, 2012.

The company now aims to sharply reduce its long-term debt of $3.4 billion, which is a somewhat high 55.7% of its market cap. That will lower its interest costs and let it invest more money in its highest-potential oil and gas properties.

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ENERPLUS CORP. $16.05 (Toronto symbol ERF; Shares outstanding: 197.6 million; Market cap: $3.2 billion; TSINetwork Rating: Extra Risk; Dividend yield: 6.7%) produces an average of 82,108 barrels of oil equivalent per day (weighted 51% to natural gas and 49% to oil). Its properties are mainly in Alberta, Saskatchewan, B.C., North Dakota and Montana, as well as the Marcellus Shale, which passes through Pennsylvania, New York, Ohio and West Virginia.

In the three months ended June 30, 2012, Enerplus’s cash flow per share was unchanged at $0.74 from a year earlier.

In June 2012, the company cut its monthly dividend by 50%. It now yields 6.7%.

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ISHARES MSCI JAPAN INDEX FUND $9.06 (American Exchange symbol EWJ; buy or sell through brokers; us.ishares.com) is an exchange traded fund that tries to match the return of the Morgan Stanley Capital International (MSCI) Japan index.

The ETF’s top holdings include Toyota, 5.2%; Mitsubishi UFJ Financial, 2.8%; Honda Motor, 2.5%; Sumitomo Mitsui Financial, 2.0%; Takeda Pharmaceutical, 1.8%; Canon, 1.8%; Mizuho Financial Group, 1.8%; Fanuc Corp., 1.5%; Softbank Corp., 1.4%; and Japan Tobacco Inc., 1.3%.

The fund’s industry breakdown is as follows: Industrials, 20.6%; Consumer Discretionary, 19.1%; Financials, 18.5%; Information Technology, 11.1%; Consumer Staples, 7.2%; Health Care, 7.2%; Materials, 6.3%; Telecommunication Services, 4.5%; Utilities, 2.7%; and Energy, 1.6%.

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CANADIAN PACIFIC RAILWAY $91.88 (Toronto symbol CP; Shares outstanding: 171.7 million; Market cap: $15.8 billion; TSINetwork Rating: Average; Dividend yield: 1.5%; www.cpr.ca), transports freight between Montreal and Vancouver and connects with hubs in the U.S. midwest and northeast.

In the quarter ended September 30, 2012, CP’s revenue rose 8.2%, to $1.45 billion from $1.34 billion a year earlier. Earnings rose 19.8%, to $224 million, or $1.30 a share, from $187 million, or $1.10.

CP’s operating ratio improved to 74.1% from 75.8%, a year ago. (Operating ratio is calculated by dividing regular operating costs by revenue. The lower the ratio, the better.) The improvement came from higher shipments, lower fuel prices and better operating performance.

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IBM $194.53 (New York symbol IBM; Shares outstanding: 1.1 billion; Market cap: $214.0 billion; TSINetwork Rating: Above Average; Dividend yield: 1.8%) is down from $210 a share in mid-October after it reported revenue of $24.7 billion in the quarter ended September 30, 2012. That’s down 5.4% from $26.2 billion a year earlier and short of the consensus estimate of $25.4 billion.

The slow global economy is hurting demand for IBM’s mainframe computers, services and software. That’s why its revenue fell.

However, the company’s ongoing cost cuts and productivity improvements pushed up its earnings before one-time items by 10.4%, to $3.62 a share from $3.28. That beat the consensus estimate of $3.61.

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ENCANA CORP. $21 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 736.3 million; Market cap: $15.5 billion; Price-to-sales ratio: 2.0; Dividend yield: 3.7%; TSINetwork Rating: Average; www.encana.com) owns the Deep Panuke offshore natural gas field south of Nova Scotia.

The project’s cost has risen to $960 million from an earlier estimate of $750 million because Encana had problems building the drilling platform (all amounts except share price and market cap in U.S. dollars). To put that in context, the company’s cash flow was $794 million, or $1.08 a share, in the quarter ended June 30, 2012.

Even with these delays, Encana still aims to begin producing gas at Deep Panuke by the end of 2012. At full capacity, this new project will increase the company’s daily gas production by 9%.

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Many investors start their search for winning stocks by looking at a company’s income statement and balance sheet. But it helps to remember that earnings are adjusted and that some items in a corporate report are more useful to investors than others. A company’s earnings are different from an employee’s salary. Earnings are indefinite and subject to revision, even years later. Companies have to estimate many costs, and make yearly write-offs against earnings, according to arbitrary rules....

BAXTER INTERNATIONAL INC. (New York symbol BAX; www.baxter.com) makes medical products, such as intravenous pumps and kidney dialysis equipment. It also makes vaccines and drugs. Half of its sales come from single-use products that need to be continually reordered. Demand for the company’s products continues to improve, particularly as an aging population needs more medical devices and drugs. Baxter’s sales rose 23.4%, from $11.3 billion in 2007 to $13.9 billion in 2011....

The Merriam-Webster dictionary defines jargon as the “technical terminology” of a special activity or group. But it also defines it as “confused unintelligible language.” Every industry and group has its own special jargon. This specialized language always has the same purpose. It simplifies communications within the industry, and helps make insiders feel they are part of a tightly knit community. It also helps the group pursue its goals. It shapes concepts that will establish lines of thought and discussions that match the industry’s view of the world. But it can be confusing for those who are not insiders in the group....

ATCO LTD. $75 (www.atco.com) has won a contract to design and build a noise-control barrier around a natural-gas-fired power plant in Texas. This barrier will shield nearby residential neighbourhoods from low-frequency sounds that rattle doors and windows....

CAE INC. $10 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 258.7 million; Market cap: $2.6 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.0%; TSINetwork Rating: Average; www.cae.com) is the world’s leading maker of flight simulators for commercial airlines, with 70% of the market. It also makes simulators for military clients. The company began training pilots for its customers in 2001; it now has over 100 flight schools in 30 countries.

CAE gets 50% of its revenue from military clients. That cuts its exposure to cyclical commercial airlines, which supply 45% of its revenue.

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TIM HORTONS INC. $50 (Toronto symbol THI; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 154.9 million; Market cap: $7.7 billion; Price-to-sales ratio: 2.5; Dividend yield: 1.7%; TSINetwork Rating: Average; www.timhortons.com) is the first fast-food company in Canada that lets customers pay for their purchases using their smartphones. After installing the necessary software, users can pay for their purchases by swiping their phone in front of a special scanner. This should speed up service and encourage repeat visits.

The company has installed these scanners in 2,300 of its 3,300 coffee-and-donut stores in Canada. Tim Hortons plans to bring this technology to an additional 700 outlets by December 2012.

Tim Hortons is a buy.

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CANADIAN NATIONAL RAILWAY CO. $86 (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 431.5 million; Market cap: $37.1 billion; Price-to-sales ratio: 3.7; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.cn.ca) will repurchase up to 5.8 million of its shares from a private seller at a discount to the market price....

SHAWCOR LTD. $44 (Toronto symbol SCL.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 70.2 million; Market cap: $3.1 billion; Price-to-sales ratio: 2.5; Dividend yield: 0.9%; TSINetwork Rating: Average; www.shawcor.com) has acquired the 60% of Fineglade Ltd. that it did not already own. Fineglade owns 96% of Socotherm S.p.A., an Italian company that provides pipeline-coating services in Europe and Asia.

ShawCor paid $135 million, which is equal to 2.4 times its 2011 earnings of $56.1 million, or $0.78 a share.

The company is now conducting a strategic review of its operations. That could mean that ShawCor will eventually be sold. It hasn’t said how long this process will take.

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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 acquiring Puratone Corporation, a private company that raises over 500,000 hogs a year at 50 barns in Manitoba.

The takeover will give Maple Leaf control of 30% of the hogs used by its processing facility in Brandon,
Manitoba.The company will pay $42 million for Puratone when the deal closes in the next few weeks. To put that in context, Maple Leaf earned $30.2 million, or $0.21 a share, in the three months ended September 30, 2012. That’s down 24.5% from $39.9 million, or $0.28 a share, a year earlier.

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