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You’ve likely noticed that the prices of many resources—and mining stocks—have risen sharply.

We think resource prices could well move even higher in the months and years ahead. In the near term, resource demand should rise as the Japanese government rebuilds the areas affected by the recent earthquake and tsunami.

Over the longer term, resource prices could soar as the global economy continues to recover. Moreover, fast-growing economies, like China and India, will continue to have a positive impact on resource prices.

Even so, the resource sector continues to be highly volatile, and investing in mining stocks has many hidden risks. In order to reap maximum profits—and avoid the pitfalls—you must know exactly which stocks to buy.

I’ve just written a new free special report to help you zero in on the mining stocks (including uranium stocks, metal stocks and junior mines) that are in the best position to take advantage of rising resource demand.

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Xerox Corp., symbol XRX on New York, makes copiers, laser printers and other publishing equipment. Xerox is one of the large cap stocks we analyze in our Wall Street Stock Forecaster newsletter. In February 2010, Xerox paid $6.5 billion for Affiliated Computer Services (ACS), which sells computer outsourcing services. Xerox now gets 80% of its revenue from long-term service contracts and recurring payments for supplies. That cut its risk....

During the election campaign, Prime Minister Stephen Harper promised to double the annual contribution limit for your tax-free savings account (TFSA) after the federal budget is balanced, which the government expects to do by 2015. (I recently wrote a special bulletin about how the election results could affect your investments. Click here to read this special bulletin and add your comments.) The federal government first made TFSAs available to investors in January 2009. Your TFSA lets you earn investment income — including interest, dividends and capital gains — tax free. You could contribute $5,000 in 2009 to start your tax free savings account....

Western Union, symbol WU on New York, provides money-transfer and foreign-exchange services in over 200 countries and territories. You can get our full stock market trading advice on Western Union in our Wall Street Stock Forecaster newsletter. In the 2011 first quarter, Western Union reported revenue of $1.3 billion. That’s up 4.1% from $1.2 billion in the comparable 2010 period....

ADOBE SYSTEMS INC. $34 (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 504.5 million; Market cap: $17.2 billion; Price-to-sales ratio: 4.2; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) makes software that lets computer users create documents in the popular PDF format. It also makes software that lets graphic designers create print publications and web pages. In its 2011 first quarter, which ended March 4, 2011, Adobe earned $298.1 million. That’s up 40.8% from $211.7 million a year earlier. Earnings per share rose 45.0% to $0.58 from $0.40, on fewer shares outstanding. These figures exclude several unusual items, such as gains on investment sales and income-tax adjustments. Sales rose 19.7%, to a record $1.0 billion from $858.7 million. Sales rose across all of Adobe’s divisions except print and publishing, where sales fell 1.8%. The uncertain business environment in Japan following the earthquake and tsunami will probably cut Adobe’s second-quarter revenue by about $50 million. Japan is Adobe’s second-biggest source of revenue by country....

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. 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: “How your stock research can benefit from price-to-sales ratios.” We display a price-to-sales or p/s ratio with every stock we cover in our newsletters, including Wall Street Stock Forecaster, our newsletter for investing in U.S. stocks....

Chances are that the May 2 election results will lead to a period of investor-friendly legislation in Canada, with growth in the economy and a healthy Canadian stock market atmosphere. Just one example: with a Conservative majority in Parliament, for instance, we may soon see higher contribution limits for both RRSPs and Tax-Free Savings Accounts. Many Canadian stock market investors agree. Still, the Toronto market greeted the largely unexpected election result with a drop of more than 1%, even though the S&P 500 was down just 0.25% this morning. By the end of the day, Toronto was down 1.71%, while the U.S. S&P 500 was down 0.85%. My view is that this reflects a widely overlooked kinship between the Conservatives and the NDP. Both parties seem to favour small business over big, and big business carries a lot more weight than small on the TSX....

Chipotle Mexican Grill, symbol CMG on New York, is a Denver-based Mexican-restaurant chain. In the three months ended March 31, 2011, Chipotle’s revenue rose 24.3% to $509.4 million from $409.7 million a year earlier. The company’s restaurants attracted more customers during the quarter. That pushed up its same-restaurant sales by 12.4%. Chipotle also opened 12 new restaurants. It now has a total of 1,095 locations. Earnings rose 22.5%, to $46.4 million from $37.8 million. Earnings per share rose 24.2%, to $1.49 from $1.20, on fewer shares outstanding. The company holds cash of $282.9 million, or $9.10 a share, and has no debt....

YUM! BRANDS INC. $52 (New York symbol YUM Aggressive Growth Portfolio; Consumer sector; Shares outstanding: 466.9 million; Market cap: $24.3 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.yum.com) operates 38,000 fast-food restaurants in over 110 countries. Its main banners include KFC (fried chicken), Pizza Hut and Taco Bell (Mexican food). It recently announced it will sell its Long John Silver’s (seafood) and its A&W (burgers) chains. Yum will soon make a formal offer to buy the 72.8% of Little Sheep Group Ltd. that it does not already own. This company operates 480 “hot pot” restaurants, mainly in China. Hot pot restaurants have special cooking pots at the centre of each table. Customers can serve themselves from the pots. Expanding in China is helping Yum offset slower growth in the U.S. In the first quarter of 2011, overall sales rose 3.4%, to $2.43 billion from $2.35 billion a year earlier. Excluding unusual items, earnings per share rose 6.8%, to $0.63 from $0.59....

Sherritt International Corp., symbol S on Toronto, is a diversified natural-resource company that produces nickel, cobalt, thermal coal, oil and gas. It also licenses its own mining technologies to other metals companies, and manages 376 megawatts of power-generation capacity in Cuba. In the three months ended March 31, 2011, the Canadian mining stock’s earnings jumped 116.3%, to $63.6 million, or $0.22 a share. A year earlier, it earned $29.4 million, or $0.10 a share. Revenue rose 29.5%, to $474.5 million from $366.4 million a year earlier. Higher prices for nickel, coal and oil were the main reasons for the improved results....

If you’ve been following our TSINetwork.ca Daily Updates, or subscribe to one or more of our newsletters and investment services, you’re likely familiar with our three-part investment advice. A key part of that advice is to invest mainly in well-established dividend-paying stocks. (The other two parts are to downplay stocks in the broker/media limelight and spread your money across the five main economic sectors: Manufacturing & Industry; Resources & Commodities; Consumer; Finance; and Utilities.) With today’s low interest rates, investors are paying more attention to dividend yields (a company’s total annual dividends paid per share divided by the current stock price). Dividend paying stocks are responding by doing their best to maintain, or even increase, their payouts....

MCDONALD’S CORP. $78 (New York symbol MCD; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.0 billion; Market cap: $78.0 billion; Price-to-sales ratio: 3.3; Dividend yield: 3.1%; TSINetwork Rating: Above Average; www.mcdonalds.com) is the world’s largest fast-food restaurant chain by revenue. It has 32,800 restaurants that mainly serve hamburgers and french fries. Franchisees own 80% of these outlets. McDonald’s gets 65% of its sales from overseas. The company continues to profit from new menu items, such as breakfast oatmeal. As well, its premium coffees are helping it compete with Starbucks. In the quarter ended March 31, 2011, sales rose 8.9%, to $6.1 billion from $5.6 billion a year earlier. Overall same-store sales rose 3.6%. European same-store sales rose 4.9%, the U.S. rose 3.0% and the Asia-Pacific gained 0.5%. Earnings rose 10.9%, to $1.2 billion from $1.1 billion. Earnings per share rose 15.0%, to $1.15 from $1.00, on fewer shares outstanding....

QUAKER CHEMICAL CORP. $45 (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 11.5 million; Market cap: $517.5 million; Price-to-sales ratio: 0.9; Dividend yield: 2.1%; TSINetwork Rating: Average; www.quakerchem.com) makes lubricants and chemicals that keep mechanical parts from corroding. In the three months ended March 31, 2011, Quaker’s earnings rose 12.5%, to $10.9 million from $9.4 million a year earlier. Earnings per share rose 8.3%, to $0.91 from $0.84, on more shares outstanding. Sales rose 24.6%, to $159.9 million from $128.3 million. The company needs oil to make its products, so it has raised its selling prices to offset rising oil costs. This was the main reason for the higher sales. Sales volumes also rose 16%, partly due to an acquisition. Even so, higher raw material costs cut Quaker’s gross margin (gross profits as a percentage of sales) to 33.0% from 36.9%....

Texas Instruments Inc. (symbol TXN on New York) makes chips for a wide variety of electronic devices, including cell phones, DVD players, digital cameras and handheld calculators. The company’s chips are also used in other products ranging from weapons-guidance systems to kidney-dialysis machines. We analyze Texas Instruments in Wall Street Stock Forecaster, our newsletter for investing in stocks in the U.S. market. In the three months ended March 31, 2011, earnings rose 1.2% to $666 million or $0.55 a share. A year earlier the company earned $658 million or $0.52 a share. The Japanese earthquake cut production at two of its factories. Earnings per share were reduced by about $0.02 because of costs associated with the earthquake. One factory is expected to resume full production shortly, and the other in July....

If you subscribe to Wall Street Stock Forecaster, our newsletter that recommends U.S.A. stock market picks, you’ll want to take a very close look at the current issue. In it, we reveal the names of 6 stocks you should sell right away—and avoid the potential for big losses. This is crucial investment advice you simply can’t afford to miss. (Note: if you are a current Wall Street Stock Forecaster subscriber or Inner Circle member, click here to view the latest issue, which contains these 6 sell recommendations. Be sure to log in first.)...

TENNANT CORP. $41 (New York symbol TNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 19.1 million; Market cap: $783.1 million; Price-to-sales ratio: 1.1; Dividend yield: 1.7%; TSINetwork Rating: Average; www.tennantco.com) makes industrial floor-cleaning equipment, including scrubbers, sweepers and polishers. It also makes cleaning equipment for garages, stadiums, parking lots and city streets. Tennant’s clients are mainly businesses and municipal governments. Tennant continues to see strong demand for its “ec-H2O” floor-scrubbing machine, which uses electricity to make tap water act like a detergent. That eliminates the need for soaps and cleaning agents, and lowers the machine’s operating costs. Strong demand for the ec-H2O is the main reason why Tennant earned $5.9 million, or $0.30 a share, in the three months ended March 31, 2011. That’s up 43.4% from $4.1 million, or $0.21 a share, a year earlier. Sales rose 15.0%, to $172.6 million from $150.1 million....

BRIGGS & STRATTON CORP. $23 (New York symbol BGG; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 50.3 million; Market cap: $1.2 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.briggsandstratton.com) is the world’s largest lawnmower engine maker. This business accounts for 62% of Briggs’sales. It gets the remaining 38% of its sales by making other home and garden equipment, such as generators, pressure washers and snow blowers. The weak U.S. economy has weighed on Briggs’ sales. In response, the company recently closed a plant in Wisconsin. Due to $4.6 million in restructuring and refinancing charges, Briggs lost $1.3 million, or $0.03 a share, in its second quarter, which ended December 26, 2010. A year earlier, it earned $3.0 million, or $0.06 a share. Sales rose 14.6%, to $450.3 million from $393.0 million. The company sold more engines to European and Asian manufacturers. It also sold more snow blowers, lawn mowers and pressure washers....

INTERNATIONAL FLAVORS & FRAGRANCES INC. $63 (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 80.3 million; Market cap: $5.1 billion; Price-to-sales ratio: 2.0; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.iff.com) makes over 34,000 unique compounds that improve the taste of foods and the smell of a wide variety of consumer products. It has 31 plants in 14 countries. Major clients include Procter & Gamble, Nestle, Kraft, Unilever and General Mills. In 2010, the company’s Fragrances business accounted for 54% of its sales, and 49% of its earnings. These products are found in such items soaps, detergents and air fresheners. The remaining 46% of IFF’s sales and 51% of its earnings came from its Flavors division. These products are used in soft drinks, candies, baked goods and alcoholic drinks....

Apple Inc., symbol AAPL on Nasdaq, makes computers and a variety of other electronic devices. Portable devices, such as the iPod music player, the iPhone smartphone and the iPad tablet computer, dominate Apple’s overall sales. Users of these products also buy music, movie and video-game downloads at the tech stock’s iTunes online store. In its second quarter, which ended March 26, 2011, Apple’s earnings rose 94.8%, to $6.0 billion, or $6.40 a share. That easily beat the consensus estimate of $5.38 a share. The company earned $3.1 billion, or $3.33 a share, a year earlier. The tech stock’s sales jumped 82.7%, to $24.7 billion from $13.5 billion. Sales outside the U.S. accounted for 59% of the total. During the quarter, the company sold 18.6 million iPhone smartphones (up 113.1%) and 3.8 million Mac computers (up 27.8%). Sales of the tech stocks iPod music players fell 17.2%, to 9.0 million units. However, that’s because many iPod users are upgrading to the iPhone, which also plays music and videos....

In the April 21, 2011, Successful Investor Email/Telephone Hotline, we’ve updated our buy/sell/hold advice on grocery retailer Metro Inc. (symbol MRU.A on Toronto). Metro is a good example of a stock that has graduated from Stock Pickers Digest, our newsletter for aggressive investors, to The Successful Investor, which focuses on more conservative selections....

Yum! Brands Inc., symbol YUM on New York, operates nearly 38,000 fast-food restaurants in over 110 countries. Its main banners include KFC (fried chicken), Pizza Hut and Taco Bell (Mexican food). Yum has announced it will sell its Long John Silver’s (seafood) and its A&W (burgers) chains. You can get our full analysis, including our clear stock advice, on Yum in Wall Street Stock Forecaster, our newsletter that covers the U.S. markets. In the three months ended March 19, 2011, Yum’s sales rose 3.4%, to $2.43 billion from $2.35 billion a year earlier. Overall sales rose 28% in China, where same-store sales rose 13%. Yum also opened 92 new restaurants there. The international division, which excludes China, opened 131 new restaurants....

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. 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: “How we use financial ratios to spot bargain stocks.” If you want to shop for bargain stocks, it’s best to focus on shares of high-quality companies that have a history of sales and earnings, plus a strong hold on a growing clientele....

International Business Machines Corp., symbol IBM on New York, reported higher-than-expected earnings in the latest quarter. In the three months ended March 31, 2011, the large cap stock’s earnings rose 10.1%, to $2.9 billion from $2.6 billion a year earlier. Earnings per share rose 17.3%, to $2.31 from $1.97, on fewer shares outstanding. Excluding one-time items, such as costs related to acquisitions, IBM earned $2.41 a share. On that basis, the latest earnings beat the consensus estimate of $2.29. Revenue rose 7.7%, to $24.6 billion from $22.9 billion a year earlier. That was higher than the consensus revenue estimate of $24.0 billion. Revenue from Brazil, Russia, India and China (which together account for 21% of IBM’s overall revenue), jumped 26%. The company is also seeing strong demand for its new System Z mainframe computer....

Canadians can still get rich as employees—ask any Canadian bank president. However, high-paying jobs are hard to find. Most corporate structures are pyramid-shaped, with a few high-paying positions at the top and many lower-paying jobs down below. Your best chance of getting rich is by investing money in your own business. But this is risky, because many new businesses wind up failing. As many as 80% go bankrupt or simply shut down in their first five years, according to surveys. Many owners of failed enterprises lose their life savings by investing money in their businesses, if not their homes and marriages. ...

Genuine Parts Co., symbol GPC on New York, distributes auto parts through more than 5,700 NAPA Auto Parts stores in the U.S. and 690 wholesalers in Canada. The company also distributes industrial parts, office furniture, and electrical equipment. We analyze Genuine Parts in Wall Street Stock Forecaster, our newsletter that helps you find the best stocks in the U.S. markets. In the three months ended March 31, 2011, Genuine Parts earned $126.5 million. That’s up 25.7% from $100.6 million a year earlier. Earnings per share rose 27.0% to $0.80 from $0.63, on fewer shares outstanding....