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Buy a house that suits your needs, and let the potential real estate investment profits take care of themselves. As real estate investments, homes

Tech stocks continue to make headlines. Often, this is due to the competitive race to get new products on the market. Sometimes, it is due to the spectacular rise—or spectacular fall—of a tech stock’s share price. But successful investors look beyond the headlines, to a company’s measurable strengths and weaknesses, to judge its long-term prospects, as we do today with one of the best-known names in the industry. GOOGLE INC. (Nasdaq symbol GOOG; investor.google.com) is the world’s leading Internet search engine. The search service is free, but it provides a platform for Google to sell ads on its websites. Ads account for 96% of its total revenue....

Investing is not an exact science. That’s why experience and judgment are just as essential as fundamental analysis in successful investing. That’s also why a balanced temperament is so important. It can keep you on a steady course and help you avoid losses....

ENCANA CORP. $19.59 (Toronto symbol ECA; Shares outstanding: 737.6 million; Market cap: $14.4 billion; TSINetwork Rating: Average; Dividend yield: 4.1%; www.encana.com) is selling two plants in the Cutbank Ridge area of northeastern B.C. to VERESEN $15.31 (Toronto symbol VSN; Shares outstanding: 169.8 million; Market cap: $2.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 6.5%). Veresen owns and operates energy pipelines and processing plants across North America.

These plants process natural gas from nearby wells. The sale also includes 370 kilometres of pipelines. Veresen will pay Encana $920 million (Canadian) when the deal closes in early 2012.

Including this deal, Encana sold or agreed to sell $3.5 billion U.S. of non-essential assets in 2011. The sales are part of its plan to focus on its main gas-producing properties in Alberta, B.C., Wyoming, Michigan, Colorado and Louisiana.

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VANGUARD GROWTH ETF $62.76 (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 stocks of large U.S. companies. Its MER is just 0.12%.

The $20.8-billion fund’s top holdings are Apple Inc., IBM, Google, Coca-Cola, Microsoft, Philip Morris International, Oracle Corp., Schlumberger, Wal-Mart and Cisco Systems

Vanguard Growth ETF is broken down by economic segment as follows: Information Technology (30.1%), Consumer Discretionary (17.0%), Industrials (12.6%), Consumer Staples (12.1%), Energy (9.4%), Health Care (9.3%), Financials (4.6%), Materials (3.4%), Telecommunication Services (0.8%) and Utilities (0.2%).

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VANGUARD EMERGING MARKETS ETF $39.22 (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 emerging markets around the world. The fund has an MER of 0.22%.

The fund’s top holdings are Samsung Electronics (South Korea: electronics), Petroleo Brasileiro SA (Brazil: oil and gas), Vale SA (Brazil: mining), Gazprom (Russia: gas utility), China Mobile (China: wireless), Taiwan Semiconductor (Taiwan: computer chips), America Movil SAB de CV (Latin America: wireless), China Construction Bank (China: banking), Itau Unibanco Holding SA (Brazil: banking), and Industrial & Commercial Bank of China (China: banking), CNOOC Ltd. (China: oil and gas) and MTN Group (South Africa: telecommunications).

The $56.3-billion Vanguard Emerging Markets ETF’s breakdown by country is as follows: China (17.1%), Brazil (15.4%), South Korea (14.9%), Taiwan (10.9%), South Africa (7.5%), India (7.4%), Russia (6.6%), Mexico (4.7%), Malaysia (3.4%), Indonesia (2.9%), Thailand (1.8%), Chile (1.7%), Poland (1.5%), Turkey (1.3%) and Other (0.9%).

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IBM $186 (New York symbol IBM; Shares outstanding: 1.2 billion; Market cap: $223.2 billion; TSINetwork Rating: Above Average; Dividend yield: 1.6%) continues to expand its software business.

In early December 2011, the company agreed to buy DemandTec Inc. (Nasdaq symbol DMAN), which makes software that retailers and consumer products makers use to analyze their customers’ spending habits. This information helps them predict consumer behaviour and quickly adjust their prices.

Adding DemandTec will also enhance IBM’s expertise in cloud computing. That’s where data and software are kept on central servers. Users then access this information over the Internet through a variety of devices

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H&R REAL ESTATE INVESTMENT TRUST $23.16 (Toronto symbol HR.UN; Units outstanding: 157.3 million; Market cap: $3.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.8%; www.hr-reit.com) owns stakes in 39 office buildings, 117 industrial properties and 133 retail properties across Canada. H&R has a 98.9% occupancy rate.

In the three months ended September 30, 2011, the REIT’s revenue rose 11.0%, to $169.6 million from $152.8 million a year earlier. Cash flow per unit rose 5.7%, to $0.37 from $0.35.

H&R is nearly finished building The Bow, a $1.33-billion, two-million-square-foot office building in Calgary. Encana Corp. has already leased the entire building for 25 years.

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CANADIAN REIT $36.18 (Toronto symbol REF.UN; Units outstanding: 67.3 million; Market cap: $2.4 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.0%; www.creit.ca) owns over 160 properties, including retail, industrial and office buildings, located across Canada and in the Chicago area. These properties contain over 24 million square feet of leasable area. Its occupancy rate is 93.7%.

In the three months ended September 30, 2011, the real estate investment trust’s revenue rose 5.5%, to $83.7 million from $79.4 million a year earlier. Cash flow per unit rose 5.3%, to $0.60 from $0.57.

Canadian REIT bought $264.5 million of properties in 2011, including its June 2011 purchase of two fully leased malls in Mississauga, Ontario, for $174.4 million. Tenants include Future Shop, Famous Players, Chapters, Rona and National Sports.

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RIOCAN REAL ESTATE INVESTMENT TRUST $26.33 (Toronto symbol REI.UN; Units outstanding: 267.0 million; Market cap: $7.0 billion; TSINetwork Rating: Average; Dividend yield: 5.2%; www.riocan.com) has purchased 80% of the Alamo Ranch shopping mall in San Antonio, Texas. Inland Western Retail REIT owns the remaining 20%.

This is RioCan’s first acquisition in San Antonio. The mall is 88% occupied, and has well-known anchor tenants, such as Target, J.C. Penny and Lowes. Other tenants include Best Buy and Dick’s Sporting Goods. These factors cut the risk of expanding into unfamiliar markets.

RioCan is a buy.

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MANITOBA TELECOM SERVICES INC. $29.80 (Toronto symbol MBT; Shares outstanding: 65.7 million; Market cap: $2.0 billion; TSINetwork Rating: Average; Dividend yield: 5.7%; www.mts.ca) has over 1.3 million telephone and wireless customers in Manitoba. This business now accounts for 54% of the company’s revenue.

The remaining 46% comes from its Allstream division, which provides integrated telephone, Internet and other communication services to businesses across Canada.

In the three months ended September 30, 2011, Manitoba Tel’s revenue fell 1.7%, to $443.2 million from $451.0 million a year earlier. The MTS division’s revenue rose 0.7%. Allstream’s revenue fell 4.6%, mostly because it is closing less-profitable businesses. Earnings per share fell 8.2%, to $0.56 from $0.61. The stock yields a high 5.7%.

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BELL ALIANT INC. $28.65 (Toronto symbol BA: Shares outstanding: 227.8 million; Market cap: $6.5 billion; TSINetwork Rating: Above Average; Yield: 6.6%; www.aliant.ca) sells telephone and Internet services to 2.8 million customers in Atlantic Canada, as well as rural parts of Ontario and Quebec. The company also sells wireless services through an alliance with BCE, which owns 43.8% of Bell Aliant.

The company faces strong competition from cable providers. In addition, many of its phone customers are switching to wireless devices. However, Bell Aliant’s wireless agreement with BCE and recent upgrades to its high-speed Internet network are helping it hold on to clients and attract new ones.

Bell Aliant earned $0.75 a share in the three months ended September 30, 2011. A year earlier, it earned just $0.21 a share.

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ISHARES MSCI SOUTH KOREA INDEX FUND $54.02 (New York Exchange symbol EWY; buy or sell through brokers), is an exchange-traded fund that aims to track the MSCI Korea Index.

The fund’s top holdings include Samsung Electronics, Hyundai Motor Co., Posco (steel), Hyundai Mobis (auto parts), Shinhan Financial, Kia Motors, LG Chemical, KB Financial, Hyundai Heavy Industries and Hynix Semiconductor.

The South Korean stock market has seen little change since the death of North Korean leader Kim Jong-il on December 17, 2011, and the elevation of his son Kim Jong-un as leader.

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ISHARES MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND $24.23 (New York Exchange symbol ESR; buy or sell through brokers), is an ETF that aims to track the MSCI Emerging Markets Eastern Europe Index. The fund’s geographic breakdown is as follows: Russia, 74.0%; Poland, 17.4%; Czech Republic, 4.3%; and Hungary, 3.5%.

The fund’s top holdings are Gazprom (Russia: gas utility), 21.0%; Lukoil (Russia: oil), 10.0%; Sberbank (Russia: bank), 7.9%; Novatek (Russia: natural gas), 4.2%; Rosneft Oil Company (Russia: oil and gas), 3.9%; Uralkali (Russia: potash), 3.7%; Mobile Tele-Systems (Russia: wireless), 2.8%; MMC Norilsk Nickel (Russia: mining), 2.7%; Tafneft (Russia: oil and gas); and CEZ AS (Czech Republic: utility), 2.2%. iShares MSCI Emerging Markets Eastern Europe Index Fund’s expense ratio is 0.68%.

The fund’s concentration in Russia adds risk, especially given its current political tensions. But the long-term outlook for resource prices, including oil and gas, is positive. That’s a big plus for Russia’s largely resource-based economy, which is forecast to grow by 3.5% in 2012.

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ISHARES S&P INDIA NIFTY 50 INDEX FUND $20.44 (Nasdaq symbol INDY; buy or sell through brokers; us.ishares.com) is an ETF that aims to track the S&P CNX Nifty Index, which represents the 50 largest, most liquid Indian securities.

The fund’s top holdings are Infosys Technologies (software), 9.5%; Reliance Industries Ltd. (conglomerate), 8.4%; ITC Ltd. (conglomerate), 7.7%; Housing Development Finance, 6.3%; ICICI Bank, 5.7%; HDFC Bank, 5.6%; Tata Consultancy Services Ltd. (information technology), 4.2%; Larsen & Toubro Ltd. (conglomerate), 3.9%; Hindustan Unilever Ltd. (consumer products), 3.1%; and State Bank of India, 3.0%.

The fund’s industry breakdown includes: Banks, 17.0%; Computers, 15.9%; Refineries, 8.8%; Cigarettes, 7.7%; Finance: Housing, 6.3%; Automobiles, 5.4%; Pharmaceuticals, 4.5%; Power, 4.3%; Engineering, 3.9%; and Oil Exploration, 3.3%. The fund has an expense ratio of 0.89%.

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CENOVUS ENERGY $34.33 (Toronto symbol CVE; Shares outstanding: 757.8 million; Market cap: $26.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 2.3%; www.cenovus.com) reported that its cash flow per share rose 54.4% in the third quarter of 2011, to $1.05 from $0.68 a year earlier. A 9.6% increase in oil prices was the main reason for the gain.

Cenovus continues to expand its Foster Creek and Christina Lake oil sands operations in Alberta. U.S.-based ConocoPhillips owns 50% of these properties. The company now plans to spend between $3.1 billion and $3.4 billion on these and other projects in 2012. That’s up 23% from its 2011 capital expenditures.

These investments will push up Cenovus’s production to between 155,000 and 171,000 barrels of oil equivalent per day (including natural gas), from 135,000 barrels in 2011.

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PENGROWTH ENERGY CORP. $11.31 (Toronto symbol PGF; Shares outstanding: 329.3 million; Market cap: $3.7 billion; TSINetwork Rating: Average; Dividend yield: 7.4%; www.pengrowth.com) produces oil and natural gas from properties in Alberta, B.C. and Saskatchewan. It also owns 8.4% of the Sable Offshore Energy Project, which extracts natural gas from several fields south of Nova Scotia.

Pengrowth produced an average of 74,568 barrels of oil equivalent per day (including natural gas) in the three months ended September 30, 2011. That’s up 2.6% from 72,704 barrels a year earlier. Production was weighted 51% to oil and 49% to natural gas.

Cash flow rose 0.7%, to $150.4 million from $149.3 million. Cash flow per share fell 8.0%, to $0.46 from $0.50, on more shares outstanding.

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ARC RESOURCES $25.52 (Toronto symbol ARX; Shares outstanding: 287.6 million; Market cap: $7.3 billion; TSINetwork Rating: Speculative; Dividend yield: 4.7%; www.arcresources.com) produces oil and gas in western Canada. Its average daily production of 85,178 barrels of oil equivalent is weighted 67% to gas and 33% to oil.

In the three months ended September 30, 2011, ARC’s cash flow per share rose 17.5%, to $0.74 from $0.63. That’s because the company raised its production. It also benefited from higher oil prices.

ARC converted from a trust to a corporation on January 1, 2011, in response to Ottawa’s income-trust tax. However, ARC has $2.2 billion of tax pools that are letting it offset the tax and maintain its $0.10 monthly payout (it now yields 4.7%).

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BCE INC. $42.28 (Toronto symbol BCE; Shares outstanding: 778.2 million; Market cap: $32.9 billion; TSINetwork Rating: Above Average; Dividend yield: 5.1%; www.bce.ca) is teaming up with Rogers Communications to buy 75% of Maple Leaf Sports and Entertainment (MLSE).

This is the private company that owns the Toronto Maple Leafs (hockey), Toronto Raptors (basketball) and Toronto FC (soccer). MLSE also owns the Air Canada Centre arena in Toronto.

BCE will pay a total of $533 million for 37.5% of MLSE.

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IMPERIAL OIL $46.03 (Toronto symbol IMO; Shares outstanding: 850.5 million; Market cap: $39.1 billion; TSINetwork Rating: Average; Dividend yield: 1.0%; www.imperialoil.ca) is a major integrated-oil company that gets most of its production from its oil sands projects in Alberta. Imperial also has conventional oil and natural-gas operations in western Canada, and it holds interests in offshore projects in Atlantic Canada.

In the three months ended September 30, 2011, Imperial’s earnings jumped 105.5%, to $859 million, or $1.01 a share. A year earlier, it earned $418 million, or $0.49 a share. Imperial increased its oil sands production and benefited from rising oil prices and improved refinery profits. Revenue rose 35.8%, to $7.9 billion from $5.9 billion.

Imperial’s production is set to keep rising thanks to its new oil sands operations, including the $10.9-billion Kearl project, which is more than 80% complete. Imperial owns 71% of Kearl. ExxonMobil Corp. (New York symbol XOM) owns the remaining 29%. Exxon also holds a 69.6% interest in Imperial.

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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, the subject of tech stocks came up as one Inner Circle member asked about a company that makes software that is vitally important for computers and mobile devices, but also faces a highly competitive market....

SARA LEE CORP. $18 (New York symbol SLE; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 590.7 million; Market cap: $10.6 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.6%; TSINetwork Rating: Above Average; www.saralee.com) announced in January 2011 that it would break itself into two separate, publicly traded companies. One firm will consist of Sara Lee’s international coffee and tea businesses. The other will focus on its North American packaged meat operations. The company aims to complete the breakup by the end of fiscal 2012 (fiscal years end June 30). It will also pay a special dividend of $3.00 a share before the split....

Many people in the investment industry promote asset allocation funds as a simple and profitable way to assemble a diversified portfolio of stocks, bonds and cash equivalents. But as is so often the case, the product rarely lives up to the hype....

Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a beginning or experienced investor, these weekly updates are designed to give you specific advice, in this case showing you how we judge winning stock picks. 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 our TSI Network ratings system to pick the right stocks: Part 2”...

LINAMAR CORP. $15 (www.linamar.com) earned $0.39 a share in the third quarter of 2011, up 44.4% from $0.27 a share a year earlier. These figures exclude costs to integrate Linamar’s recent purchase of three French plants that make cylinder heads, gears and other parts for European carmakers....