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CALIAN TECHNOLOGIES $19.74 (Toronto symbol CTY; TSINetwork Rating: Speculative) (613-599-8600; www.calian.com; Shares outstanding: 7.6 million; Market cap: $150.0 million; Dividend yield: 5.3%) has acquired Primacy Management of Burlington, Ontario.

Since 2003, Primacy has been designing, building and managing in-store pharmacies for Loblaw. Primacy now operates 112 such clinics in Loblaw’s stores across Canada.

Primacy will add about $3 million a year to Calian’s revenue. To put that figure in perspective, Calian’s revenue was $56.8 million in the quarter ended December 31, 2011. Calian also expects the acquisition to immediately add to its earnings.

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FIRSTSERVICE CORP. $30.90 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 28.6 million; Market cap: $883.7 million; No dividends paid) serves the following areas of the real estate market: commercial real estate, residential property management and property improvement.

In the three months ended December 31, 2011, the company’s revenue rose 7.8%, to $594.9 million from $552.1 million a year earlier (all figures except share prices in U.S. dollars). Excluding one-time items, earnings per share rose 40.5%, to $0.52 from $0.37.

The company’s $316.4-million debt is a manageable 35.8% of its $883.7-million market cap.

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IAMGOLD $13.22 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464-9999; www.iamgold.com; Shares outstanding: 375.9 million; Market cap: $5.0 billion; Dividend yield: 1.5%) reports that its revenue rose 9.2% in the three months ended December 31, 2011, to $481.6 million from $440.9 million a year earlier, largely due to higher gold prices. Earnings per share rose 9.1%, to $0.36 from $0.33.

IAMGold now holds over $1.1 billion U.S. in cash and gold bullion. That gives it lots of options to spur its share price. For example, it could raise exploration spending, make an acquisition or buy back shares.

IAMGold is still a buy.

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VITERRA $14.65 (Toronto symbol VT; TSINetwork Rating: Average) (1-866-569-4411; www.viterra.ca; Shares outstanding: 371.7 million; Market cap: $5.4 billion; Dividend yield: 1.0%) is up almost 31% since the company said it has received expressions of interest from unnamed parties interested in taking it over.

The stock was our Pick of the Month in the last issue (March 2012) of Stock Pickers Digest. At the time, it was trading at $10.09. That’s a 45.2% gain in one month.

Our view is that the company is well positioned to benefit from an expected rise in Canadian and Australian crop yields in 2012, as well as the end of the Canadian Wheat Board’s monopoly on western Canadian wheat and barley sales. In addition, its Australian operations’ sales to Asia continue to rise.

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SHERRITT INTERNATIONAL $5.58 (Toronto symbol S; TSINetwork Rating: Speculative) (1-800-704-6698; www.sherritt.com;
Shares outstanding: 296.7 million; Market cap: $1.7 billion; Dividend yield: 2.7%) reports that its revenue rose 10.6% in the three months ended December 31, 2011, to $536.8 million from $485.2 million a year earlier.

Despite the higher revenue, earnings fell 34.2%, to $28.1 million, or $0.10 a share, from $42.7 million, or $0.15 a share. However, without one-time items, such as a charge for the early redemption of debentures, Sherritt would have earned $0.19 in the latest quarter.

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TRILOGY ENERGY CORP. $27.33 (Toronto symbol TET; TSINetwork Rating: Speculative) (403-290-2900; www.trilogy.com; Shares outstanding: 90.5 million; Market cap: $2.5 billion; Dividend yield: 1.5%) owns oil and gas properties in the Kaybob and Grande Prairie areas of central Alberta. About 64% of Trilogy’s production is natural gas. The remaining 36% is oil.

In the three months ended December 31, 2011, Trilogy produced 28,288 barrels of oil equivalent per day (including natural gas), up 31.3% from 21,544 barrels a year earlier. The higher production pushed up the company’s cash flow per share by 75.9%, to $0.51 from $0.29.

Trilogy drilled 68 wells in 2011, with a 98.5% success rate. That pushed up the company’s production and boosted its reserves by 13%, to 88.6 million barrels from 78.2 million. That’s enough for over 11 years of production.

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ZARGON OIL & GAS $14.04 (Toronto symbol ZAR; TSINetwork Rating: Speculative) (403-264-9992; www.zargon.ca; Shares outstanding: 29.4 million; Market cap: $412.8 million; Dividend yield: 8.6%) produces natural gas and oil in Alberta, Manitoba, Saskatchewan and North Dakota. The company’s production is 61% oil and 39% natural gas.

In the three months ended December 31, 2011, Zargon produced 9,278 barrels of oil equivalent per day. That’s down slightly from 9.317 barrels a year earlier. However, that was mainly because the company sold some less important properties. Higher oil prices pushed up Zargon’s cash flow per share by 7.4%, to $0.58 from $0.54 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. This method works well in places where conventional drilling is impossible or too expensive.

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AASTRA TECHNOLOGIES $21.04 (Toronto symbol AAH; TSINetwork Rating: Speculative) (905-760-4200; www.aastra.com; Shares outstanding: 14.0 million; Market cap: $294.6 million; Dividend yield: 3.8%) reports that its sales fell 7.1% in the latest quarter, to $199.7 million from $214.9 million a year earlier. Higher sales in Germany were offset by sales declines in Spain and North America.

Even so, earnings rose 13.5%, to $18.2 million, or $1.30 a share, from $16.0 million, or $1.14 a share. Aastra’s research expenses fell 17.9%, to $14.8 million from $18.0 million, As well, the company narrowed its foreign exchange loss to $1.3 million from $2.6 million a year earlier.

Aastra needs a sustained economic recovery in Europe to raise its sales and further push up its earnings. Still, the stock trades at just 12.0 times the $1.76 a share that the company should earn in 2011. The shares yield a high 3.8%.

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DOMINO’S PIZZA $39.60 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3030; www.dominos.com; Shares outstanding: 57.8 million; Market cap: $2.3 billion; No dividends paid) is the world’s largest chain of pizza stores that offer takeout and delivery. The company operates 9,742 outlets in the U.S. and over 70 in other countries. Franchisees run most of these stores.

In the three months ended January 1, 2012, Domino’s earnings per share rose 33.3%, to $0.52 from $0.39. The company paid more for food ingredients, but that was offset by lower costs for labour, rent and interest.

Sales rose 4.4%, to $501.7 million from $480.0 million. U.S. same-store sales jumped 6.8%. International same-store sales rose 4.7%.

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RUBY TUESDAY, INC. $7.97 (New York symbol RT; TSINetwork Rating: Speculative) (865-379-5700; www.rubytuesday.com; Shares outstanding: 63.8 million; Market cap: $508.5 million; No dividends paid) owns 742 casual dining restaurants in the U.S. Franchisees operate 43 outlets in the U.S. and 44 overseas.

In the three months ended November 30, 2011, Ruby Tuesday’s sales rose 5.9%, to $307.5 million from $290.5 million a year earlier. However, same-restaurant sales fell 4.2%, mostly due to stiff competition from other chains, many of which spent heavily on TV advertising.

Ruby Tuesday’s overall sales were helped by its new menu items and specials, including its lunch offer of soup, a salad bowl or garden bar, and garlic cheese biscuits starting at $5.99 to $6.99. Even so, the company lost $0.03 a share, compared to a profit of $0.07 a share a year earlier.

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DUNDEE REIT $36.80 (Toronto symbol D.UN; TSINetwork Rating: Speculative) (416-365-3535; www.dundeereit.com; Shares outstanding: 66.3 million; Market cap: $2.4 billion; Dividend yield: 6.0%) owns and manages 18.9 million square feet of office, industrial and retail space. The trust has a 95.6% occupancy rate.

In the three months ended December 31, 2011, Dundee’s revenue jumped 73.2%, to $136.3 million from $78.7 million a year earlier. Most of the increase came from properties the trust recently purchased.

The best way to assess a real estate investment trust’s operating performance is to look at its cash flow, and Dundee’s cash flow rose 62.6% in the latest quarter, to $41.0 million from $25.2 million. Cash flow per unit rose 12.7%, to $0.62 from $0.55, due to more units outstanding (the trust issued new units to pay for the acquired properties).

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STANTEC INC. $30.90 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288; www.stantec.com; Shares outstanding: 45.5 million; Market cap: $1.4 billion; Dividend yield: 1.9%) sells a range of consulting, project delivery, design/build and technology services. The company’s clients operate in a wide variety of markets, including industry, environment, transportation and construction. Stantec has over 11,000 employees at 170 locations throughout North America. It also has four international offices.

In the three months ended December 31, 2011, the company’s revenue rose 12.6%, to $432.0 million from $383.7 million a year earlier. Acquisitions were part of the reason for the gains. Stantec is also working on a number of new projects. Before one-time items, earnings rose 4.3%, to $24.3 million, or $0.53 a share, from $23.3 million, or $0.51 a share.

Stantec continues to grow by acquisition. In 2011, it bought five companies. Together, these firms added 725 staff to Stantec’s workforce.

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GOODYEAR TIRE & RUBBER CO. $12.32 (New York symbol GT; TSINetwork Rating: Extra Risk) (330-796-2122; www.goodyear.com; Shares outstanding: 244.6 million; Market cap: $3.0 billion; No dividends paid) reports that its sales rose 12.0% in three months ended December 31, 2011, to a record $5.7 billion from $5.1 billion a year earlier.

The company earned $18 million, or $0.07 a share, compared with a loss of $177.0 million, or $0.73. Earnings benefited from the record sales and the company’s cost cuts, as well as a shift toward higher-priced tires.

Rising costs for raw materials, especially rubber, could limit Goodyear’s earnings growth in the near term. However, its long-term outlook is positive.

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INTUITIVE SURGICAL $528.20 (Nasdaq symbol ISRG; TSINetwork Rating: Average) (515-507-5000; www.intuitivesurgical.com; Shares outstanding: 39.3 million; Market cap: $20.8 billion; No dividends paid) makes the da Vinci, a computerized surgical system.

Guided by a miniature camera connected to a 3-D monitor, surgeons use the da Vinci to operate by remotely manipulating tiny robotic arms. This process is safer and much less invasive than regular surgery, and helps cut a patient’s recovery time and post-operative discomfort. It also reduces scarring and infection risk.

In the three months ended December 31, 2011, Intuitive earned $151.2 million, or $3.86 a share. That’s up 24.8% from $121.2 million, or $3.10 a share, a year earlier. Revenue rose 27.6%, to $496.8 million from $389.3 million. Intuitive is debt-free, and holds cash of $2.2 billion, or $55.98 a share.

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TEMPUR-PEDIC $82.30 (New York symbol TPX; TSINetwork Rating: Speculative) (800-878-8889; www.tempurpedic.com; Shares outstanding: 63.8 million; Market cap: $5.3 billion; No dividends paid) makes and distributes Swedish mattresses and neck pillows made from its Tempur material, which conforms to the body to provide support and help alleviate pressure points.

Tempur-Pedic now sells its products in over 80 countries.

In the three months ended December 31, 2011, Tempur-Pedic’s sales rose 25.3%, to $366.8 million from $292.7 million. North American sales rose 26%, and international sales gained 25%.

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This is first of a series of video interviews in which Pat McKeough will give his investment advice on a variety of topics. Some will deal with his overall investment philosophy, others on specific investment strategies and still others will be comments on events that are affecting the markets and the economy. Today he answers a question from a TSI reader on how to react when good stocks start to slide. Below is the transcription of Pat’s comments. ...

TIM HORTONS $52.70 (Toronto symbol THI; TSINetwork Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 157.4 million; Market cap: $8.3 billion; Dividend yield: 1.6%) is using its strong earnings to keep expanding. It’s also raising its dividend and buying back shares.

Tim Hortons operates 3,295 coffee-and-donut stores in Canada and 714 in the U.S. That’s up from 3,148 Canadian outlets and 602 U.S. stores a year ago.

The company’s earnings per share before one-time items rose 25.8% in the latest quarter, to $0.65 from $0.52 a year earlier. Sales rose 21.2%, to $779.8 million from $643.5 million.

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CHEMTRADE LOGISTICS INCOME FUND $16.73 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics.com; Units outstanding: 41.7 million; Market cap: $697.6 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 byproducts as part of their processing activities. Chemtrade converts these substances into useful chemicals, like sulphuric acid. The trust also makes other chemicals.

In the three months ended December 31, 2011, Chemtrade’s cash flow per unit jumped 52.5%, to $0.61 from $0.40 a year earlier. Revenue rose 63.4%, to $247.2 million from $151.3 million. That mostly reflects the contribution of Marsulex Inc., which Chemtrade bought for $419.5 million in June 2011.

Marsulex provides a range of environmental services, including improving air quality and treating and handling industrial by-products and hazardous waste. Revenue also rose due to rising industrial demand and higher market prices for sulphuric acid.

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We were pleased to learn in November 2011 that Warren Buffett had made a major investment in IBM. Indeed, Mr. Buffett was recently quoted as saying that he was “late to the IBM party,” but even so he has committed a good deal of money to it. He now owns 6% of the company. We made IBM our #1 U.S. Stock of the Year in our Wall Street Stock Forecaster newsletter in 2010. The price was $126—yet it has risen over 60% since then. We think IBM will go still higher in years to come, and it appears Warren feels the same way....

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 the best strategies to use in 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: “There are 3 convenient ways to invest in foreign growth without getting out of your comfort zone.”...

While alternative energy investments appeal to a lot of investors on an emotional and conceptual level, many offer only limited investment potential. That’s because they may need a long time to move from the research or concept stage to profitability. However, there are renewable energy stocks that already have established businesses, such as hydroelectric power, that cut the risk of their alternative energy investments....

Most investors recognize that aggressive investments have the potential to produce higher returns than the more conservative choices in your portfolio. But they can also suffer bigger losses. As well, aggressive stocks are often more highly leveraged and volatile than conservative stocks. Understanding all this, there are still very good reasons to turn to aggressive stocks. And there are ways to earn big returns without exposing yourself to excessive risk. Here are 4 principles that we use to select our growth stock picks for Stock Pickers Digest, our newsletter for the aggressive portion of investors’ portfolios.

1. Limit aggressive holdings to 30% of your overall portfolio. Because aggressive stocks expose you to a greater risk of loss, we recommend limiting your aggressive holdings to no more than about 30% of your overall portfolio....

Pat McKeough responds to many personal questions on specific stocks and other investing topics from the members of his Inner Circle. Every week, his comments and recommendations on a selection of the most intriguing questions of the past week go out to all Inner Circle members. And every Friday, we offer you one of the highlights from these Q&A sessions. This week, there was a question about a stock that has been on the rise, Canada’s biggest private liquor store operator. Pat examines the company’s prospects for future growth in Canada as well as the possible risks and rewards of U.S. expansion....

ISHARES MSCI CANADA INDEX FUND $28.36 (New York symbol EWC; buy or sell through brokers; ca.ishares.com) is like a market cap-based index fund, but its managers try to improve its performance by tinkering with the index fund formula. They do this through their Morgan Stanley Capital International Canada Index. The fund has an MER of 0.52%.

The index’s top holdings are Royal Bank, 6.1%; TD Bank, 5.6%; Bank of Nova Scotia, 4.5%; Suncor Energy, 4.4%; Barrick Gold, 4.0%; Canadian Natural Resources, 3.5%; Potash Corp., 3.3%; Goldcorp, 3.2%; Bank of Montreal, 3.0%; CN Railway, 2.8%; and CIBC, 2.5%.

If you want to own a Canadian index fund, you should buy the iShares S&P/TSX 60 Index Fund. You’ll pay about a third of the management fees.

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POWERSHARES QQQ ETF $61.02 (Nasdaq symbol QQQQ; buy or sell through brokers; www.invescopowershares.com), formerly called Nasdaq 100 Trust Shares, holds the stocks that represent the Nasdaq 100 Index. That index is made up of the 100 largest shares on the Nasdaq exchange, based on market cap.

The Nasdaq 100 Index contains shares of companies in a number of major industries, including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain financial companies. The fund’s expenses are about 0.20% of its assets.

The index’s highest-weighted stocks are Apple, Microsoft, Qualcomm, Google, Cisco Systems, Intel, Amazon.com, Oracle Corp., Comcast Corp. and Amgen Inc.

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