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INTERNATIONAL ROAD DYNAMICS $0.28 (Toronto symbol IRD; TSINetwork Rating: Speculative) (306-653-6600; www.ird.ca; Shares outstanding: 14.0 million; Market cap: $3.9 million; No dividends paid) makes products and systems that manage highway traffic, including automated toll-road and weigh-station systems for trucks. The company’s weigh-in-motion system weighs trucks while they’re moving, rather than at less -efficient roadside weigh stations.

International Road continues to report rising losses and declining sales. That’s because governments are spending less on highway infrastructure as they struggle with ballooning budget deficits.

The company’s total debt of $6.7 million is a high 171.8% of its market cap. Its cash flow is negative, so it may need to borrow more money to sustain its operations. The cash shortfall could also make it hard for the company to maintain the marketing and research spending necessary to stay ahead of the competition.

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SHAMARAN PETROLEUM $0.23 (Toronto symbol SNM; TSINetwork Rating: Speculative) (416-364-8820; www.shamaranpetroleum.com; Shares outstanding: 808.0 million; Market cap: $185.8 million) holds oil and gas exploration interests in Kurdistan. Kurdistan is the most stable area of Iraq, but operating there still entails considerable political risk.

ShaMaran and its partners have struck oil, but they need to do much more drilling to decide whether to bring their new wells into production.

Meanwhile, the company will have to keep making dilutive share issues at today’s low prices to finance further exploration. ShaMaran’s development efforts also face a lot of uncertainty.

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CASH STORE FINANCIAL SERVICES INC. $5.52 (Toronto symbol CSF; TSINetwork Rating: Speculative) (780-408-5110; www.csfinancial.ca; Shares outstanding: 17.4 million; Market cap: $96.0 million; Dividend yield: 8.7%) operates 573 stores under two banners: The Cash Store and Instaloans. Both chains offer consumer payday loans (advances on upcoming paycheques).

The company faces increasing regulations in the payday loan industry. It has also been forced to pay a number of penalties, the latest being a March 2012 order from the B.C. government to refund its customers millions of dollars in overpaid interest and extra charges. These transactions date back to 2009.

Cash Store is now slowing its expansion in Canada and focusing on growing in the less-regulated U.K. market. But it’s far from certain if that strategy will be successful.

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AMAZON.COM $191.07 (Nasdaq symbol AMZN; TSINetwork Rating: Extra Risk) (206-266-1000; www.amazon.com; Shares outstanding: 455.1 million; Market cap: $87.0 billion; No dividends paid) has agreed to buy Kiva Systems for $775 million. Kiva makes small orange robots that help manage warehouse inventory.

Amazon’s shipping volumes continue to rise. In response, the company plans to add 17 more warehouses, bringing its total to 69.

The Kiva purchase will let Amazon better control its labour costs. Amazon can also sell the robots to other retailers. Kiva’s clients already include the Gap, Staples and Saks.

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AEROPOSTALE INC. $21.81 (New York symbol ARO; TSINetwork Rating: Extra Risk) (646-485-5410; www.aeropostale.com; Shares outstanding: 81.0 million; Market cap: $1.8 billion; No dividends paid) is a mall-based retailer of casual clothing and accessories. It now has 983 stores, and mainly targets 14- to 17-year-old women and men. Its active-oriented clothing has a reputation for high quality and low prices.

Aeropostale also has 71 P.S. from Aeropostale stores, which are aimed at seven- to 12-year-old elementary school students.

In the three months ended January 28, 2012, Aeropostale’s sales fell 3.7% to $808.4 million from $839.3 million a year earlier. Same-store sales declined 9%. Sales from the company’s e-commerce business rose 8%, to $83.2 million from $77.3 million. Earnings dropped 57.6%, to $16.4 million, or $0.44 a share, from $45.4 million, or $0.95 a share.

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DOREL INDUSTRIES $29.34 (Toronto symbol DII.B; TSINetwork Rating: Extra Risk) (514-731-0000; www.dorel.com; Shares outstanding: 32.6 million; Market cap: $956.5 million; Dividend yield: 2.0%) 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; recreational products, including bicycles; and home furnishings. It has 5,000 employees and plants in 22 countries.

In the three months ended December 31, 2011, Dorel’s sales rose 4.1%, to $561.6 million from $539.5 million a year earlier (all figures except share price in U.S. dollars).

Revenue at the company’s home furnishings division rose 22.8% on higher sales to U.S. retailers. That offset weaker revenue at the other divisions. Earnings per share rose 7.6%, to $0.85 from $0.79 a year earlier.

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NISSAN MOTOR CO. (ADR) $20.45 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111; www.nissanmotors.com; Shares outstanding: 2.3 billion; Market cap: $47.0 billion; No dividends paid) reported record U.S. sales in March.

Overall, the company sold 136,317 cars and trucks in the U.S. during the month. That’s up 12.5% from 121,141 vehicles in March 2011.

The Nissan division’s sales jumped 14.8%, to a record 126,132 vehicles. Infiniti sales rose 9.8%, to 10,185 vehicles.

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MCCOY CORP. $3.60 (Toronto symbol MCB; TSINetwork Rating: Speculative) (780-453-8451; www.mccoyglobal.com; Shares outstanding: 26.5 million; Market cap: $95.4 million; Dividend yield: 3.3%) 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 clients in the oil and gas, wind energy, infrastructure and construction industries. It also makes trailer-mounted vacuum tanks and operates a truck dealership.

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WAJAX CORP. $49 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax.ca; Shares outstanding:16.6 million; Market cap: $813.4 million; Dividend yield: 6.6%) 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 December 31, 2011, Wajax’s revenue rose 19.2%, to $377.2 million from $316.4 million a year earlier. Demand remained strong across all of the company’s markets.

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REITMANS (CANADA) LTD. $15.27 (Toronto symbol RET.A; TSINetwork Rating: Extra Risk) (514-384-1140; www.reitmans.com; Shares outstanding: 66.3 million; Market cap: $1.0 billion; Dividend yield: 5.2%) reports that its sales fell 3.3% in the quarter ended January 28, 2012, to $260.0 million from $268.7 million a year earlier. Same-store sales fell 1.7%.

The company earned $4.7 million, or $0.07 a share. That’s down 66.2% from $13.8 million, or $0.21 a share.

Fewer shoppers visited Reitmans’ stores in the quarter, due to weaker consumer confidence. As well, the company spent more on promotions to fend off rising competition.

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BMTC GROUP $19.90 (Toronto symbol GBT.A; TSINetwork Rating: Extra Risk) (514-648-5757; No website; Shares outstanding: 49.2 million; Market cap: $979.1 million; Dividend yield: 1.2%) is one of Quebec’s largest retailers of furniture, electronics and household appliances. It sells these products through its two affiliates: Brault & Martineau Inc. and Ameublements Tanguay.

The company has 20 large stores in the Montreal, Quebec City, Repentigny, Laval, Saint-Georges, Chicoutimi, Sainte-Therese, Trois-Rivieres, Sherbrooke, Rimouski, Riviere-du-Loup and Gatineau areas. It also has six liquidation centres, six Sleep Gallery stores and two distribution and administration centres in Montreal and Quebec City. It’s now building a new store in Levis that will open shortly.

In the three months ended December 31, 2011, BMTC’s sales fell 10.0%, to $194.2 million from $215.8 million a year earlier. Lower consumer spending hurt BMTC’s sales. Earnings per share fell 10.0%, to $0.45 from $0.50.

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LEON’S FURNITURE LTD. $12.09 (Toronto symbol LNF; TSINetwork Rating: Average) (416-243-7880; www.leons.ca; Shares outstanding: 69.9 million; Market cap: $845.1 million; Dividend yield: 3.3%) has built its chain of over 72 furniture stores on its four main strengths: a huge selection of furniture, appliances and electronics; a lowest-price guarantee; strong after-sales service; and aggressive TV, radio and print advertising.

In the three months ended December 31, 2011, Leon’s sales fell 2.1%, to $193.8 million from $197.9 million a year earlier. Weaker consumer spending and a drop in new-housing starts held back sales.

Earnings fell 7.0%, to $19.9 million, or $0.28 a share, from $21.4 million, or $0.30 a share. The slower sales were the main reason for the earnings decline. The company also spent more on advertising.

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ALIMENTATION COUCHE-TARD $39.60 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couchetard.com; Shares outstanding: 179.4 million; Market cap: $7.1 billion; Dividend yield: 0.8%) has jumped over $5 since it announced that it is buying Norway’s Statoil Fuel & Retail ASA for $2.8 billion U.S.

Couche-Tard is now up 29% since we made it our #1 stock Pick for 2012 in our February issue at $30.55.

Statoil, Norway’s largest North Sea oil producer, owns 54% of publicly traded Statoil Fuel.

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MAJOR DRILLING $15.27 (Toronto symbol MDI; TSINetwork Rating: Speculative) (1-866-264-3986; www.majordrilling.com; Shares outstanding: 79.1 million; Market cap: $1.2 billion; Dividend yield: 1.2%) is a large contract drilling firm that mainly serves the mining industry.

In its fiscal 2012 third quarter, which ended January 31, 2012, Major’s revenue rose 69.1%, to $182.2 million from $107.7 million a year earlier. Earnings per share jumped to $0.12 from $0.02. Due to seasonal factors, the third quarter is typically the company’s weakest.

Many of Major’s customers increased their drilling during the quarter, especially for gold, copper, coal and iron ore. The company gets 38% of its revenue from Canada and the U.S., 32% from South and Central America, and 30% from Australia, Asia and Africa.

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This is the latest in a series of video interviews in which Pat McKeough will give his 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. Asked about when he would advise buying bonds again in light of interest rates, Pat replies with a piece of advice that applies to stocks and bonds. Don’t make your buy or sell decisions with just one statistic in mind. Consider all the circumstances. In other words, “If you’re going to play the game, look at all your cards.” Below is the transcription of Pat’s comments. ...

When you decide you want to invest on your own in the stock market, you face a decision every investor has encountered. You have to choose whether to use a discount broker, a full-service stock broker, or a portfolio manager. This decision is no formality; it will play an important role in the way you approach your investments. Here is how the three choices stack up:...

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, including how to use financial ratios and other information in your stock research. 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: “Use the price-to-sales ratio correctly and you can uncover stocks with strong growth potential.”...

Peter Lynch, the world’s top mutual fund manager from the 1970s through the early 1990s, maintains that it’s a good idea to invest in companies you’re familiar with, companies you see in action regularly. That stock market advice could certainly be put to the test by the many Canadians who pour through the doors of the country’s best known coffee and fast food chain every day. TIM HORTONS INC. (Toronto symbol THI; www.timhortons.com) operates 3,295 coffee-and-donut stores in Canada and 714 in the U.S. It also has five recently-opened outlets in the Persian Gulf....

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 a selection of 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. Last week, one Inner Circle member asked for stock investing advice on one of the world’s largest chemical manufacturers. Pat notes that the company has made headway with new specialty chemicals, but that its future is closely tied to the economic recovery. ...

This is the latest in a series of video interviews in which Pat McKeough will give his 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. This time, Canadian real estate investing is the subject, as Pat replies to a question from a reader inspired by the increase in property values. Is buying a property and becoming a landlord a good investment? Look beyond today’s prices before you act, is Pat’s advice. Below is the transcription of Pat’s comments....

PENGROWTH ENERGY $10.09 (Toronto symbol PGF; Shares outstanding: 329.3 million; Market cap: $3.3 billion; TSINetwork Rating: Average; Dividend yield: 8.3%; www.pengrowth.com) plans to invest $625
million to develop its properties in 2012. That’s up 3% from the $607 million it spent in 2011.

Pengrowth will spend about 40% of these funds on its Swan Hills light oil project in Alberta. The rest will go toward its other oil projects, including its Lindberg oil sands deposit. Due to low natural gas prices, the company will hold off on further investments in its gas properties this year.

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INNERGEX RENEWABLE ENERGY $10.27 (Toronto symbol INE; Shares outstanding: 81.3 million; Market cap: $835.8 million; TSINetwork Rating: Extra Risk; Dividend yield 5.7%; www.innergex.com) owns and operates 25 hydroelectric and wind power facilities in Quebec, Ontario, B.C. and Idaho.

Innergex gets about 80% of its power from hydroelectric plants. Wind farms supply the remaining 20%. Wind power is heavily reliant on politically sensitive government subsidies. To cut its risk, Innergex makes sure it has firm long-term power-purchase contracts in place before it makes acquisitions or starts building new plants.

In April 2011, Innergex bought Cloudworks Energy for $187 million. That added stakes in six operating hydroelectric plants in B.C. and other projects that are still under development.

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ALGONQUIN POWER & UTILITIES CORP. $6.20 (Toronto symbol AQN; Shares outstanding: 136.1 million; Market cap: $843.8 million; TSINetwork Rating: Extra Risk; Dividend yield: 4.5%; www.algonquinpower.com) holds interests in 45 hydroelectric plants in Canada and the northeastern U.S. It also owns 12 thermal energy facilities. Algonquin’s wholly owned subsidiary, Liberty Water Co., owns 19 water-distribution and sewage treatment plants in the U.S.

The company also has a partnership with Emera Inc. (Toronto symbol EMA), which is a recommendation of The Successful Investor, our conservative growth advisory. Emera holds a 24.4% interest in Algonquin. This partnership, called Liberty Energy Utilities, continues to make acquisitions.

Liberty Energy’s purchases include NV Energy, which sells power to 47,000 customers near Lake Tahoe; Atmos Energy, which distributes natural gas to 83,000 customers in Missouri, Iowa and Illinois; and two other utilities that sell electricity and natural gas to 130,000 customers in New Hampshire.

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ISHARES AUSTRALIA INDEX FUND $23.75 (New York symbol EWA; buy or sell through brokers), is an ETF that holds the 73 largest Australian stocks. Its MER is 0.52%.

The fund’s top holdings include BHP Billiton, 13.7%; Commonwealth Bank of Australia, 9.2%; Westpac Banking Corp., 7.5%; Australia and New Zealand Banking Group, 6.9%; National Australia Bank, 6.1%; Woolworths, 3.6%; Rio Tinto, 3.5%; Wesfarmers, 3.5%; Newcrest Mining, 3.0%; and Woodside Petroleum, 2.8%.

Australia benefits from its stable banking and political systems. It is also rich in natural resources, and its exports are in high demand in Asian markets, including India and China.

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RIOCAN REAL ESTATE INVESTMENT TRUST $27.12 (Toronto symbol REI.UN; Units outstanding: 267.0 million; Market cap: $6.9 billion; TSINetwork Rating: Average; Dividend yield: 5.1%; www.riocan.com) reported revenue of $988 million in 2011, up 12.0% from $882 million in 2010. That’s mainly due to the 38 new malls the trust bought during the year. (In all, RioCan purchased $1.1 billion of new properties in 2011.) Cash flow per unit rose 7.5%, to $1.43 from $1.33.

RioCan yields 5.1%. It paid out 96.5% of its cash flow in 2011. However, 22% of its investors prefer to receive new units instead of cash. On this basis, the actual payout was just 74.8% of its cash flow.

RioCan is still our #1 safety-conscious buy for 2012.

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