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BRIGGS & STRATTON CORP. $18 (New York symbol BGG; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 48.7 million; Market cap: $876.6 million; Priceto- sales ratio: 0.4; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.briggsandstratton.com) is the world’s largest maker of lawn mower engines. This business accounts for 58% of Briggs’s sales. It gets the remaining 42% by making other home and garden equipment, such as generators, pressure washers and snow blowers.

The company is seeing weaker sales in North America— partly due to this year’s drought— and in Western Europe. In response, Briggs recently closed two plants in the U.S. and one in the Czech Republic. Severance payments and related costs totalled $49.9 million, but these moves should lower the company’s annual costs by $45 million by 2014.

Briggs also plans to stop selling lawn mowers to big retail chains like Wal-Mart and Home Depot. This will cut its annual sales by $100 million, but the company’s profit margins on these items are low, so this move should improve its overall earnings.

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SNAP-ON INC. $70 (New York symbol SNA; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 58.2 million; Market cap: $4.1 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.9%; TSINetwork Rating: Average; www.snapon.com) makes tools for auto mechanics and sells them directly through its fleet of franchised vans that visit garages. This unique sales model puts it in a great position to gain from rising car sales.

Right now, Snap-On is focused on expanding in Asia and other fast-growing regions, where rising prosperity is fuelling car demand. The company now gets roughly 40% of its revenue from overseas markets.

At the same time, Snap-On is investing heavily in other businesses that will cut its exposure to the cyclical car market. For example, it now makes specialized tools for mining companies, electrical power generators and aerospace companies.

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GENUINE PARTS CO. $64 (New York symbol GPC; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 155.1 million; Market cap: $9.9 billion; Price-to-sales ratio: 0.8; Dividend yield: 3.1%; TSINetwork Rating: Average; www.genpt.com) gets 50% of its sales and 53% of its earnings by selling auto parts. The company operates 1,300 of its own outlets under the NAPA banner, and its distribution business serves 4,750 independent stores across North America.

Genuine also distributes industrial parts (34% of sales, 33% of earnings), office furniture (12%, 10%) and electrical equipment (4%, 4%).

In January 2012, the company paid $165.6 million for 30% of Exego Group, a privately held firm that sells auto parts through 430 stores in Australia and New Zealand. As part of the deal, Genuine acquired an option to buy the remaining 70%.

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MCCORMICK & CO. INC. $60 (New York symbol MKC; Income Portfolio, Consumer sector; Shares outstanding: 120.2 million; Market cap: $7.2 billion; Price-to-sales ratio: 1.9; Dividend yield: 2.1%; TSINetwork Rating: Average; www.mccormick.com) is buying Wuhan Asia-Pacific Condiments Co., Ltd., a leading maker of bouillon products in China.

The company will pay $141 million for this business when the deal closes in mid-2013.

To put that price in context, McCormick earned $80.4 million, or $0.60 a share, in its fiscal 2012 second quarter, which ended May 31. 2012. The new operations will add $115 million to McCormick’s annual sales of $3.9 billion.

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GOOGLE INC. $677 (Nasdaq symbol GOOG; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 327.0 million; Market cap: $221.4 billion; Priceto- sales ratio: 5.1; No dividends paid; TSINetwork Rating: Above Average; www.google.com) is the world’s top Internet search engine, with about two-thirds of this market. The company has held on to its lead because its well-developed search technology gives it a big advantage over its competitors.

Google does not charge for its searches. Instead, it makes money by selling advertising on its websites. It mainly does this through its AdWords program, which lets advertisers bid on certain search words or phrases. The company then charges advertisers when users click on their ads. Google gets around 97% of its revenue from advertising.

The company also offers free access to all or part of its other services, including Gmail (email), YouTube (videos), Google Books (electronic books), Google Talk (Internet-based phone calls), Google+ (social networking) and Google Chrome (an Internet browser). These services help draw more users to Google’s sites, which lets the company sell more ads and charge higher ad rates.

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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 stock market advice that will help you develop a successful approach to investing. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put it into practice right away. Today’s tip: “There is an element of chance in the success of every business, and it’s rarely worthwhile to test your luck by investing in new issues.”...

POTASH CORP. OF SASKATCHEWAN (Toronto symbol POT; www.potashcorp.com) is the world’s largest fertilizer producer. Its six potash mines in Saskatchewan and one in New Brunswick account for 20% of global potash capacity. Four of its mines have reserves of between 75 and 108 years. It also makes fertilizers from nitrogen and phosphate. The company’s sales and earnings vary with volatile fertilizer prices. That’s why its sales jumped from $5.2 billion in 2007 to $9.4 billion in 2008, but dropped to $4.0 billion in 2009 (all amounts except share price in U.S. dollars). Sales recovered to $6.5 billion in 2010, and rose to $8.7 billion in 2011....

Pat McKeough responds to many personal questions on 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. This past week, an Inner Circle asked us about one of the handful of companies (outside of REITs) that has remained an income trust. This auto repair firm has undertaken a program of rapid growth that involves buying up smaller shops and chains. Pat assesses the pros and cons of this aggressive strategy. Q: Dear Pat: What do you think about Boyd Group Income Fund? Could you please give me your insight and recommendation? Thank you....

We receive many questions from our readers and clients on retirement planning, and the subject has become even more popular as the first wave of the baby boom generation enters the retirement years. Many more will soon follow.

Most retirement questions revolve around how much money you need to retire, and the best way to generate a steady, comfortable income after you have left your working life behind....

Pat McKeough responds to many personal questions on buying 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. Recently, an Inner Circle member asked about a Canadian stock that is going through a transition period. This printing firm, which has specialized in cheques for many years, is using two acquisitions to help it diversify as electronic transactions become the norm. ...

If you’re always looking for the next market decline, you’re bound to miss out on many good investment opportunities. Specific advice on helping you develop a successful approach to investing in the stock market.

MCCOY CORP. $3.59 (Toronto symbol MCB; TSINetwork Rating: Speculative) (780-453-8451; www.mccoyglobal.com; Shares outstanding: 26.5 million; Market cap: $95.1 million; Dividend yield: 5.5%) operates through two divisions: Mobile Solutions and Energy Products and Services.

Energy Products and Services sells hydraulic equipment, including power tongs, for drilling rigs. Power tongs are large wrench-like tools that tighten and loosen the pipe in the drill hole.

Mobile Solutions builds heavy-duty trailers for Canadian and U.S. clients in the oil and gas, wind energy, infrastructure and construction industries.

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WAJAX CORP. $45.65 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax.ca; Shares outstanding:16.7 million; Market cap: $762.3 million; Dividend yield: 7.1%) sells and services heavy equipment, including cranes and forklifts. It also sells related parts (such as bearings, motors, hoses and fittings) and power systems (including diesel engines and transmissions).

Wajax operates through 117 dealerships across Canada. Its customers are in the natural resource, construction, manufacturing, industrial processing and transportation industries.

In the three months ended June 30, 2012, the company’s revenue rose 15.7%, to $386.6 million from $334.1 million a year earlier. That was largely due to increased sales of mining equipment and record sales of Hitachi construction excavators in western Canada. Those gains offset lower sales of power systems to western Canadian oil and gas drillers.

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BROADRIDGE FINANCIAL SOLUTIONS $22.88 New York symbol BR: TSINetwork Rating: Extra Risk) (201-714-3000; www.broadridge.com; Shares outstanding: 124.9 million; Market cap: $2.9 billion; Dividend yield: 3.2%) reports that its earnings rose 12.6% in its 2012 fiscal year, which ended June 30, 2012, to $198.0 million from $175.8 million in 2011. Earnings per share climbed 13.1%, to $1.55 from $1.37, on fewer shares outstanding.

Revenue rose 6.3%, to $2.3 billion from $2.2 billion.

The company continues to do a good job of attracting new clients and holding on to existing ones. Acquisitions also contributed to the gains. Moreover, Broadridge has finished moving its data centre to IBM under an outsourcing contract that expires in June 2022. This deal should save the company roughly $25 million a year.

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ALIMENTATION COUCHE-TARD $50.95 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couche-tard.com; Shares outstanding: 179.4 million; Market cap: $9.1 billion; Dividend yield: 0.6%) has agreed to buy 27 Sun Mart convenience stores in Washington State from Sun Pacific Energy for an undisclosed amount.

All but one of these outlets sell fuel. Nineteen of the stores’ gas stations operate under the Shell banner, and seven use the Exxon label. Couche-Tard will convert all 27 stores to its Circle K banner, although they will still sell Shell and Exxon fuel.

Alimentation Couche-Tard is still our #1 buy for 2012.

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FAIRFAX FINANCIAL HOLDINGS $377.50 (Toronto symbol FFH: TSINetwork Rating: Average) (416-367-2612; www.fairfax.ca; Shares outstanding: 19.9 million; Market cap: $8.1 billion; Dividend yield: 2.7%) has increased its stake in Research in Motion, symbol RIM on Toronto. The company now owns 9.9% of RIM, up from 5.12%. RIM is a recommendation of our Successful Investor newsletter.

Fairfax is now RIM’s largest shareholder. The company’s chairman and founder, Prem Watsa, is also on RIM’s board of directors.

Fairfax’s large interest gives Watsa more sway over RIM. He now feels that RIM shares are at or near bottom. But either way, he says he’s taking a three- to five-year time horizon on getting a significant return on his investment.

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DOREL INDUSTRIES $29.65 (Toronto symbol DII.B; TSINetwork Rating: Extra Risk) (514-731-0000; www.dorel.com; Shares outstanding: 31.9 million; Market cap: $945.8 million; Dividend yield: 4.0%) has just doubled its quarterly dividend, to $0.30 from $0.15. The shares now yield a high 4.0%. The increase follows the company’s strong 2012 second-quarter results.

In the three months ended June 30, 2012, Dorel’s sales rose 2.4%, to $633.7 million from $619.0 million a year earlier (all figures except share price in U.S. dollars). Revenue increased at all three of the company’s divisions. Earnings per share rose 35.7%, to $0.95 from $0.70 a year earlier. The gain resulted from the higher revenue and increased sales of more profitable products.

The company holds cash of $45.1 million, or $1.44 a share. Its long-term debt of $316.8 million is a reasonable 33.5% of its $945.8-million market cap.

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WYNDHAM WORLDWIDE $50.86 (New York symbol WYN; TSINetwork Rating: Extra Risk) (973-753-6000; www.wyndhamworldwide.com; Shares outstanding: 142.2 million; Market cap: $7.2 billion; Dividend yield: 1.8%) saw its revenue rise 4.5% in the three months ended June 30, 2012, to $1.14 billion from $1.1 billion a year earlier. Its occupancy rate rose 3.6%.

Before one-time items, earnings rose 35.9%, to $0.87 a share from $0.64. To further boost its results, Wyndham is expanding in fast-growing markets like Asia and Latin America.

The company’s outlook is positive, but the shares now trade at a high 19.1 times its latest 12 months of earnings.

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RUBY TUESDAY, INC. $6.76 (New York symbol RT; TSINetwork Rating: Speculative) (865-379-5700; www.rubytuesday.com; Shares outstanding: 63.8 million; Market cap: $429.3 million; No dividends paid) owns 714 casual dining restaurants in the U.S. Franchisees operate 36 outlets in the U.S. and 43 overseas.

In the three months ended June 5, 2012, Ruby Tuesday’s sales rose 2.9%, to $363.2 million from $353.0 million a year earlier. However, same-restaurant sales fell 4.6%, mostly due to stiff competition from other chains.

Ruby Tuesday has developed a number of new restaurant concepts, including Marlin & Ray’s seafood restaurants; Truffles, an upscale cafe; and Lime Fresh Mexican Grills. The company feels these new layouts will help it compete in certain towns and cities. It’s now converting underperforming stores to these banners, and building new ones.

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DOMINO’S PIZZA $34.22 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3030; www.dominos.com; Shares outstanding: 56.7 million; Market cap: $1.9 billion; No dividends paid) is the world’s largest chain of pizza stores that offer takeout and delivery. It operates 9,924 outlets in the U.S. and over 70 in other countries. Franchisees run most of these stores.

In the quarter ended June 17, 2012, the company’s earnings per share rose 17.5%, to $0.47 from $0.40 a year earlier. Costs fell, including a 12% drop in cheese prices.

Sales declined 2.3%, to $376.1 million from $384.9 million. That’s mainly because of lower sales of ingredients, including cheese, to franchisees. Same-store sales rose 5.7% internationally and 1.7% in the U.S.

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SHERRITT INTERNATIONAL $4.54 (Toronto symbol S; TSINetwork Rating: Speculative) (1-800-704-6698; www.sherritt.com; Shares outstanding: 296.7 million; Market cap: $1.3 billion; Dividend yield: 3.4%) reports that its revenue fell 2.5% in the three months ended June 30, 2012, to $487.9 million from $500.6 million a year earlier. Cash flow fell 10.7%, to $81.6 million, or $0.28 a share, from $91.4 million, or $0.31 a share.

Lower nickel prices and a drop in thermal coal sales were the main reasons for the declines.

The company is Cuba’s largest foreign investor; its Cuban operations account for the majority of its revenue and earnings. The country’s uncertain political and economic situation adds to the stock’s risk. However, Sherritt is diversifying away from Cuba by investing in other countries.

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ZARGON OIL & GAS $8.99 (Toronto symbol ZAR; TSINetwork Rating: Speculative) (403-264-9992; www.zargon.ca; Shares outstanding: 29.6 million; Market cap: $266.1 million; Dividend yield: 8.0%) produces natural gas and oil in Alberta, Manitoba, Saskatchewan and North Dakota. Its production is 65% oil and 35% gas.

In the three months ended June 30, 2012, Zargon produced 8,290 barrels of oil equivalent per day, down 4.6% from 8,686 barrels a year earlier. That’s because the company sold some less-important properties and cut back on natural gas drilling in light of low gas prices. The production drop pushed down Zargon’s cash flow per share by 12.5%, to $0.42 from $0.48 a year earlier.

The company continues to successfully drill horizontal wells in the Alberta Plains North area. Horizontal drilling involves drilling development wells sideways or at an angle to reach isolated pockets of gas or to follow a reservoir spread out in a narrow layer. Horizontal drilling can work well in places where conventional drilling is impossible or too expensive.

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BIRCHCLIFF ENERGY $7.00 (Toronto symbol BIR; TSINetwork Rating: Speculative) (403-261-6401; www.birchcliffenergy.com; Units outstanding: 141.4 million; Market cap: $989.8 million; No dividends paid) develops, produces and explores for oil and natural gas, mainly in the Peace River Arch area near the Alberta/B.C. border. About 75% of Birchcliff’s production is natural gas. The remaining 25% is oil.

Prominent Toronto investor Seymour Schulich is the company’s largest shareholder; he owns about 28% of its outstanding shares.

In the three months ended June 30, 2012, Birchcliff’s production rose 27.2%, to 22,039 barrels of oil equivalent per day (including natural gas) from 17,324 barrels a year earlier.

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THE CHURCHILL CORP. $8.16 (Toronto symbol CUQ; TSINetwork Rating: Speculative) (780-454-3667; www.churchillcorporation.com; Shares outstanding: 24.4 million; Market cap: $199.1 million; Dividend yield: 5.9%) is down 32% from mid-July after it reported a $0.17-a-share loss in the quarter ended June 30, 2012.

The loss is mainly the result of project delays. Higher-than-expected rainfall slowed work on its Calgary Airport runway project and a housing development in Saskatoon. As well, construction of Winnipeg’s new football stadium was stalled because subcontractors failed to deliver steel structures on time.

Despite this setback, Churchill’s long-term prospects remain sound. Meanwhile, its dividend, which yields a high 5.9%, looks safe.

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ENERFLEX LTD., $12.39 (Toronto symbol EFX; TSINetwork Rating: Extra Risk) (403-387-6377; www.enerflex.com; Shares outstanding: 77.6 million; Market cap: $961.5 million; Dividend yield: 1.9%) 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 of the world’s fast-growing 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. Natural gas prices are at 10-year lows, but companies continue to increase their drilling and production.

In the quarter ended June 30, 2012, Enerflex’s revenue jumped 43.9%, to $354.6 million from $246.5 million a year ago. Strong demand from customers in the southern U.S. and South America pushed sales higher.

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