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NEWMONT MINING CORP. $60 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 493.1 million; Market cap: $29.6 billion; Price-to-sales ratio: 2.8; Dividend yield: 2.3%; TSINetwork Rating: Average; www.newmont.com) expects its overall copper production will fall to around 160 million pounds in 2012 from 206 million pounds in 2011. That’s because the operators of its 44.56%-owned Batu Hijau open-pit copper mine in Indonesia need time to clear out waste material so they can reach lower depths with higher grades of copper. As well, Newmont expects its copper production costs to jump to between $1.80 and $2.20 per ounce in 2012 from $1.26 in 2011.

The company also expects to produce 5.0 million to 5.2 million ounces of gold in 2012, which is comparable to the 5.2 million ounces it produced in 2011. However, due to rising power and labour costs at its Australian mines, its gold-production costs will jump to between $625 and $675 an ounce from $592 in 2011.

Newmont’s long-term outlook remains bright. Concerns over European sovereign debt should continue to spur gold prices. Copper prices should also rebound in 2012, as global consumption will probably exceed production.

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PEPSICO INC. $67 (New York symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.6 billion; Market cap: $107.2 billion; Price-to-sales ratio: 1.6; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.pepsico.com) will make and distribute Ocean Spray cranberry drinks in Latin America under a new 20-year deal with Ocean Spray Cranberries, Inc.

The two companies already have a similar deal in the U.S., where Ocean Spray’s volumes have risen 20% since 2006. PepsiCo feels its marketing expertise and distribution networks will help it repeat this success in Latin America.

PepsiCo is a buy.

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CHEVRON CORP. $108 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2.0 billion; Market cap: $216.0 billion; Price-to-sales ratio: 0.9; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.chevron.com) recently announced that it had discovered promising new gas wells off the northwest coast of Australia. This was its 13th discovery in the area since 2009.

These discoveries enhance the prospects of Chevron’s Gorgon liquefied natural gas (LNG) project in Australia. Gorgon will convert gas from these offshore fields into a liquid. The company will then ship the LNG on tankers to customers in Asia.

Chevron owns 47% of Gorgon, and will operate it. The company’s share of the $37-billion development cost is $17.4 billion. Gorgon should start producing in 2014. Chevron expects the Australian wells to last 40 years.

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WELLS FARGO & CO. $30 (New York symbol WFC; Conservative Growth Portfolio, Finance sector; Shares outstanding: 5.3 billion; Market cap: $159.0 billion; Price-to-sales ratio: 2.0; Dividend yield: 1.6%; TSINetwork Rating: Average; www.wellsfargo.com) earned $15.0 billion in 2011. That’s up 29.2% from $11.6 billion in 2010. Earnings per share rose 27.6%, to $2.82 from $2.21, on more shares outstanding. More clients are repaying their loans on time. As a result, loan-loss provisions fell 49.9%, to $7.9 billion from $15.8 billion. This was the main reason for earnings gain.

Revenue fell 5.0%, to $80.9 billion from $85.2 billion. Demand for mortgages and credit cards is rising. However, the bank is getting less interest income from borrowers due to today’s low interest rates.

Wells Fargo is still a hold.

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CEDAR FAIR L.P. $25 (New York symbol FUN; Income Portfolio, Consumer sector; Units outstanding: 55.4 million; Market cap: $1.4 billion; Price-to-sales ratio: 1.4; Dividend yield: 6.4%; TSINetwork Rating: Average; www.cedarfair.com) had a record 23.4 million visitors at its amusement parks, water parks and hotels in 2011. That’s up 2.6% from 22.8 million in 2010.

As a result, the partnership estimates that its revenue increased 5.4% in 2011, to $1.03 billion from $977.6 million in 2010. Thanks to its improving outlook, the partnership expects to pay distributions of $1.60 a unit in 2012 (for a 6.4% yield). That’s up 60.0% from $1.00 in 2011.

Cedar Fair is a buy.

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FAIR ISAAC CORP. $39 (New York symbol FICO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 35.7 million; Market cap: $1.4 billion; Price-to-sales ratio: 2.2; Dividend yield: 0.2%; TSINetwork Rating: Average; www.fico.com) sells products and services that help businesses around the world make better decisions on customer creditworthiness.

Fair Isaac is starting to see the benefits of its recent restructuring plan, which included cutting 9% of its workforce and combining facilities.

In its 2011 fiscal year, which ended September 30, 2011, Fair Isaac’s earnings rose 22.4%, to $80.2 million from $65.6 million in fiscal 2010. The company spent $96.3 million in 2011 on share buybacks. Because of a 9.7% drop in the number of shares outstanding, earnings per share jumped 38.6%, to $2.01 from $1.45. Revenue rose 2.3%, to $619.7 million from $605.6 million. Lower loan demand pushed down sales of credit scores to lenders. However, higher sales of fraud-detection products more than offset this drop.

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BROADRIDGE FINANCIAL SERVICES INC. $24 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 124.1 million; Market cap: $3.0 billion; Price-to-sales ratio: 1.3; Dividend yield: 2.7%; TSINetwork Rating: Average; www.broadridge.com) serves the investment industry in three areas: investor communications, securities processing and transaction clearing.

In its fiscal 2012 first quarter, Broadridge earned $19 million. That’s up 46.2% from $13 million a year earlier. Earnings per share rose 50.0%, to $0.15 from $0.10, on fewer shares outstanding. Revenue rose 13.1%, to $476.4 million from $421.4 million.

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AGILENT TECHNOLOGIES INC. $44 (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 348.1 million; Market cap: $15.3 billion; Price-to-sales ratio: 2.2; Dividend yield: 0.9%; TSINetwork Rating: Average; www.agilent.com) makes testing systems that help improve electronic
devices, such as cellphones. It also makes medical and drug-testing equipment.

The company will pay its first-ever quarterly dividend of $0.10 a share in April 2012. The annual rate of $0.40 yields 0.9%.

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DIEBOLD INC. $32 (New York symbol DBD; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 62.6 million; Market cap: $2.0 billion; Price-to-sales ratio: 0.7; Dividend yield: 3.5%; TSINetwork Rating: Average; www.diebold.com) makes ATMs, safes, vaults and building security systems.

Diebold spends 3% of its revenue on research. This has helped it develop innovative new products, such as its Opteva Flex Performance ATMs. These models can sort banknotes that customers deposit and then reissue them to other users. This reduces the need to refill these ATMs with fresh bills.

In the third quarter of 2011, Diebold’s revenue fell 5.2%, to $709.3 million from $748.6 million a year earlier. That’s mainly due to lower sales of lottery and voting equipment in Brazil.

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NCR CORP. $18 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 157.4 million; Market cap: $2.8 billion; Price-to-sales ratio: 0.5; No dividends paid; TSINetwork Rating: Average; www.ncr.com) is a leading maker of ATMs, checkout scanners, cash registers and self-serve kiosks.

In August 2011, NCR paid $1.2 billion for Radiant Systems Inc., which makes point-of-sale terminals and self-serve kiosks for hotels, restaurants and gas stations. This purchase will cut NCR’s reliance on ATMs, which account for 55% of its overall revenue.

In the quarter ended September 30, 2011, NCR’s revenue rose 16.2%, to $1.4 billion from $1.2 billion. Radiant contributed $36 million to the increase. NCR earned $16 million, or $0.10 a share. That’s down 79.5% from $78 million, or $0.48 a share, a year earlier. Without costs to integrate Radiant, earnings per share rose 15.2%, to $0.53 from $0.46.

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INTERNATIONAL FLAVORS & FRAGRANCES INC. $57 (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 80.9 million; Market cap: $4.6 billion; Price-to-sales ratio: 1.7; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.iff.com) aims to make its fragrances division more profitable. This business makes compounds that improve the smells of soaps, detergents and air fresheners.

As part of this plan, IFF will increase its focus on emerging markets. As a result, it will cut 70 employees worldwide. It will pay severance and other costs of $10 million, or $0.08 a share; IFF earned $81.8 million, or $1.00 a share, in the third quarter of 2011. The plan should save it $9 million a year, starting in 2012.

International Flavors & Fragrances is a buy.

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CONAGRA FOODS INC. $27 (New York symbol CAG; Income Portfolio, Consumer sector; Shares outstanding: 412.6 million; Market cap: $11.1 billion; Price-to-sales ratio: 0.9; Dividend yield: 3.6%; TSINetwork Rating: Above Average; www.conagrafoods.com) is paying an undisclosed sum for the Canadian operations of Del Monte Foods. This business makes packaged fruits, fruit snacks and vegetables under the Del Monte brand, as well as canned tomato products under the Aylmer label.

The new operations look like a nice fit with ConAgra’s existing operations in Canada, and will add $150 million to its annual sales of $12.8 billion.

ConAgra is a buy.

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GOOGLE INC. $569 (Nasdaq symbol GOOG; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 323.9 million; Market cap: $184.3 billion; Price-to-sales ratio: 5.0; No dividends paid; TSINetwork Rating: Above Average; www.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.

Google continues to hire new employees as it builds up its non-search operations, including its Google+ social-networking site. Google+ now has 90 million users, up from 40 million in October 2011.

Even with these extra expenses, Google’s earnings in the three months ended December 31, 2011 rose 9.7%, to $3.1 billion from $2.85 billion a year earlier. Earnings per share rose 8.6%, to $9.50 from $8.75, on more shares outstanding. These figures exclude unusual items, mainly stock options paid to employees.

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MICROSOFT CORP. $30 (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 8.4 billion; Market cap: $252.0 billion; Price-to-sales ratio: 3.4; Dividend yield: 2.7%; TSINetwork Rating: Above Average; www.microsoft.com) gets 80% of its sales from its Windows operating system and Office suite of business software. However, the company is taking steps to expand into other areas, as well.

For example, Microsoft recently entered into an alliance with Nokia Corp. (New York symbol NOK). Under this deal, Nokia will make mobile phones that use Microsoft’s Windows Phone software.

Microsoft also paid $8.5 billion in October 2011 for Skype Global. Skype’s software lets computer users make free phone calls over the Internet. Microsoft feels that Skype will enhance its Xbox Live service, which lets users of its Xbox video game consoles communicate with each other online.

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APPLE INC. $447 (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 932.2 million; Market cap: $416.7 billion; Price-to-sales ratio: 3.1; No dividends paid; TSINetwork Rating: Average; www.apple.com) makes computers and a wide range of electronic devices, including the iPhone and iPad tablet computer.

Apple recently teamed up with several leading textbook publishers to make more titles available to iPad and iPhone users. The company has also launched its new iBooks 2 software, which makes it easy for students to use Apple devices to take notes and search within text. Publishers can also use the program to quickly update content and add features, like video.

This could be a huge market for Apple. By 2020, e-books could account for half of all textbook sales, up from just 3% in 2011.

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INTERNATIONAL BUSINESS MACHINES CORP. $192 (New York symbol IBM, Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.2 billion; Market cap: $230.4 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.6%; TSINetwork Rating: Above Average; www.ibm.com) is the world’s oldest computer company (it began operating in 1911), with operations in over 170 countries.

The company continues to profit from its move away from mainframe computers and toward designing computer systems and managing them on behalf of its clients. The resulting long-term maintenance contracts give it more dependable revenue streams. IBM now gets 55% of its revenue from services.

The company continues to rapidly grow its software business. Right now, it is particularly focused on developing analytics software, which helps businesses and government agencies gather and analyze a wide variety of data. In addition, IBM makes software for applications ranging from traffic management to power grids and food production. Software now supplies 25% of IBM’s overall revenue.

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TRANSCONTINENTAL INC. (Toronto symbol TCL.A; www.tctranscontinental.com) is the largest commercial printer in Canada and the fourth-largest in North America. It also publishes newspapers and magazines. Transcontinental also has over 1,000 websites, which supply 16% of its total revenue. These websites will become more important to this blue chip stock’s growth in the next few years as advertisers spend more on the Internet than print products....

Whether they’re near to retirement or still some years away, many investors have one prevailing fear. Once they stop working, there won’t be enough income coming in. This underlines the fact that retirement investing should begin well before you approach retirement age. And there is a plan you can adopt during your working years that is particularly effective in smoothing the path to retirement. ...

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. One question this week concerned energy stocks, specifically one stock that expects to benefit as the search for new oil production increasingly leads to the deposits found deep in the world’s oceans....

This past autumn, a long-time reader and portfolio management client asked a question that other investors may wonder about in today’s turbulent markets. He wrote, “You constantly remind members to have a balanced portfolio and strategy for long-term success when investing. But when do you take profits? You have mentioned a couple of times to sell, such as when a stock makes up too much of your total portfolio, or if a company shows questionable management or business decisions. My main question is why don’t we sell when stocks move up and there are profits to be had?”...

Our approach begins with our time-tested 3-pronged strategy: investing money mainly in well-established, dividend-paying companies, spreading your money out across the five main economic sectors.

MANITOBA TELECOM SERVICES INC. (Toronto symbol MBT; 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....

CHIPOTLE MEXICAN GRILL $356.82 (New York symbol CMG; TSINetwork Rating: Speculative) (303-595-4000; www.chipotle.com; Shares outstanding: 31.8 million; Market cap: $11.3 billion; No dividends paid) is a Denver-based Mexican-restaurant chain. The company charges slightly higher prices than fast-food chains, but it offers higher-quality food, including naturally raised meat, and better decor and service.

In the three months ended September 30, 2011, sales rose 24.1%, to $591.9 million from $476.9 million a year earlier. The company’s restaurants attracted more customers during the quarter, and it raised its prices. That pushed up same-restaurant sales by 11.3%. As well, Chipotle opened 32 new outlets. Earnings per share rose 24.5%, to $1.93 from $1.55.

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TIM HORTONS $48.38 (Toronto symbol THI; TSINetwork Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 160.1 million; Market cap: $7.7 billion; Dividend yield: 1.4%) operates 3,225 coffee-and-donut shops in Canada and 645 in the U.S.

Without one-time items, Tim Hortons earned $0.65 a share in the three months ended October 2, 2011. That’s up 18.2% from $0.55 a share a year earlier.

Sales rose 8.4%, to $726.9 million from $670.5 million. Canadian same-store sales rose 4.7%, because Tim Hortons launched successful new products like real fruit smoothies and specialty bagels. U.S. same-store sales rose 6.3%, as customers spent more per visit. The company also raised its prices to cover higher costs for coffee and other foods.

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RUGGEDCOM INC. $25.31 (Toronto symbol RCM; TSINetwork Rating: Speculative) (1-888-264-0006; www.ruggedcom.com; Shares outstanding: 12.6 million; Market cap: $318.9 million; No dividends paid) is still the target of a hostile takeover bid from U.S. cable and networking equipment manufacturer Belden Inc. RuggedCom makes computer-networking equipment that is used in harsh environments.

Belden recently reaffirmed its offer of $22 in cash for each RuggedCom share. RuggedCom feels that Belden’s offer is too low, and has advised shareholders to reject the bid. The company is looking for other buyers.

RuggedCom is now trading at $25.31 a share, or 15.0% above Belden’s bid. This indicates that investors are anticipating a higher offer from Belden or another bidder.

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