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CONAGRA FOODS INC. $23 (New York symbol CAG; Income Portfolio, Consumer sector; Shares outstanding: 443.4 million; Market cap: $10.2 billion; Price-to-sales ratio: 0.8; Dividend yield: 3.5%; WSSF Rating: Above Average) makes a wide variety of packaged foods, including Chef Boyardee canned pasta, Hunt’s tomato sauce, Peter Pan peanut butter and Orville Redenbacher popcorn. The company gets 64% of its revenue by selling its products to consumers, so the company benefits as more people eat at home because of the slow economy. That has helped offset slower sales to businesses, such as restaurants, which account for the remaining 36% of its revenue. ConAgra continues to benefit from its plan to lower its annual costs by $250 million. These measures mainly include selling slow-growing, low-margin brands. Falling ingredient prices are also helping increase earnings....

MCCORMICK & CO. INC. $38 (New York symbol MKC; Income Portfolio, Consumer sector; Shares outstanding: 130.9 million; Market cap: $5.0 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.7%; WSSF Rating: Average) is the world’s leading maker of spices, herbs, seasonings, flavourings, sauces and extracts. It sells its products to consumers, restaurants and industrial food processors. Its top brands include McCormick, Club House, Zatarain’s, Ducos and Schwartz. The company likes to increase its sales through acquisitions. In 2008, it paid $604 million for the Lawry’s and Adolph’s brands of marinades and seasonings. It also bought Canadian honey producer Billy Bee Honey Products Ltd. for $76.4 million. McCormick earned $75.1 million, or $0.57 a share, in its third quarter, which ended August 31, 2009. That’s up 9.5% from $68.6 million, or $0.52 a share, a year earlier. The company’s new businesses were the main reason for the gain....

KRAFT FOODS INC. $28 (New York symbol KFT; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.5 billion; Market cap: $42.0 billion; Price-to-sales ratio: 1.0; Dividend yield: 4.1%; WSSF Rating: Above Average) is the world’s second-largest food company after Switzerland-based Nestle S.A. Its leading brands include Kraft cheese, Maxwell House coffee, Nabisco cookies and Oscar Meyer meats. Kraft is buying U.K.-based Cadbury plc (New York symbol CBY). Cadbury is a leading maker of confectioneries, including chocolate, candy and gum. Buying Cadbury will help Kraft sell more of its foods in developing countries. Moreover, chocolates and candies generate higher profit margins than Kraft’s packaged foods. Kraft will pay $19.4 billion in cash and stock. That’s 17.6% more than its initial offer of $16.5 billion. As well, Kraft raised the cash portion to 60% from 40%. The deal should close by mid-2010....

I hope you are enjoying and profiting from the stock trading advice in my TSI Network Daily Updates. Every day, TSI Network attracts a wide variety of Canadian investors. To take the pulse of this unique online community, we publish weekly polls so we can see what the site’s visitors think of current financial issues. The feedback we get from these polls often forms the basis of the stock trading advice we give you in our TSI Network Daily Updates. We also welcome you to submit your own questions about stock trading advice or any other investment matter, so you can quickly and easily get a feel for where other investors stand on issues that affect you. Just send your suggestions to pat@tsinetwork.ca. If we think they’re suitable for the site, we’ll post them as our “Financial Question of the Week.”...

Demand for medical devices and supplies will undoubtedly continue to grow as the population ages. Companies in this fast-changing field make a wide range of products, from laboratory instruments to bandages and surgical tools. Some medical-equipment firms are large and well-established, like C.R. Bard (symbol BCR on New York), one of the stocks we cover in our Wall Street Stock Forecaster newsletter. Bard makes many different medical devices and tools, and has over $2.4 billion U.S. in annual sales. The company also has a long history of paying dividends. At the other end of the scale are companies like Intuitive Surgical (symbol ISRG on Nasdaq). Intuitive’s share price has been rapidly rising, but its sales of $874.9 million U.S. are only about 36% of Bard’s sales. As well, Intuitive only has one product — the da Vinci computerized surgical system (more on that below) — and does not pay a dividend....

Technology has made extraordinary advances in the past decade, yet lots of investors lost money when they invested in it. Often, that was because they invested too early. In their eagerness to get in on the “ground floor,” they bought tech stocks based mainly on potential improvements in the technology. But they failed to consider the political, financial and practical obstacles that new technology always faces.

Pioneering tech stocks rarely live up to their potential

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Over the years, we’ve recommended many stocks that have been taken over for big profits. In fact, some readers of our newsletters and investment services tell us that they never had a stock taken over at a profit until they began following our advice. (To get all the details on our stock market strategy, and how it can help your portfolio, don’t miss our free report, “Canadian Stock Market Basics: How to Trade Stocks and Make Good Investments in Canada.” Click here to download your copy and get started right away.) More on the stock market strategy that helps us routinely spot takeover candidates a little further on. But first, here are just a few recent takeover targets we’ve recommended. All rewarded our readers with big gains:...

On January 22, Wall Street Stock Forecaster, our newsletter that focuses on the U.S. stock markets, will unveil a stock with the right mix of strong fundamentals and technological know-how to earn big profits in 2010 and beyond. In fact, we think this company’s prospects are so bright we’ve named it Wall Street Stock Forecaster’s #1 stock pick for the coming year. This company is already a major global player in its industry. But that doesn’t mean it’s resting on its laurels. It’s solidly focused on fuelling its growth, and has done so in a number of ways: It recently made a string of smart acquisitions that have both enhanced its products and helped it expand geographically. To top it off, its high research and development spending will continue to keep it way ahead of the competition....

Registered Retirement Savings Plans (RRSPs) are a great way for investors to cut their tax bills and make more money from their retirement investing. RRSPs are a form of tax-deferred savings plan. RRSP contributions are tax deductible, and the investments grow tax-free. (Note that you can contribute up to 18% of your earned income from the previous year, to a maximum of $21,000, rising to $22,000 in 2010). March 1, 2010, is the last day you can contribute to an RRSP and deduct your contribution from your 2009 income. When you later begin withdrawing the funds from your RRSP, they are taxed as ordinary income....

When you join my Inner Circle service, you get my investing advice on your own personal investment questions, plus you get to see what other Inner Circle members have asked, along with our answers. So you can get a sense of how our service works, and how our investing advice might help your portfolio, I’d like to share two recent member questions about exchange-traded funds (ETFs). Q: Pat, What’s your investing advice on iShares MSCI Brazil Index Fund?...

A rebounding global economy should continue to push up resource prices. That will help Canadian income trusts that serve the resource sector, including Precision Drilling Trust (symbol PD.UN on Toronto). Precision provides contract-drilling services to oil and gas producers, mainly in western Canada. In light of recent developments surrounding Precision, we’ve updated our buy/sell/hold advice on the trust in the current issue of The Successful Investor. (Read on to find out how you can get a free copy of this issue. Along with our latest buy/sell/hold advice on Precision, it contains our full analysis of 16 other investments that could be suitable for your portfolio.)

New tax will put Canadian income trusts on an equal footing with regular corporations

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CGI GROUP INC. $15 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 297.0 million; Market cap: $4.5 billion; Price-to-sales ratio: 1.2; No dividends paid; SI Rating: Extra Risk) is Canada’s largest provider of computer-outsourcing and information-technology services. It also operates in 15 other countries. Canada provided 57% of CGI’s revenue in its latest year, followed by the U.S./India (36%) and Europe/Asia (7%). CGI’s main businesses are: 1) Outsourcing: CGI takes over all or part of a client’s information-technology and related functions. That lets the client cut costs and gain ongoing access to the most current computer technology. Outsourcing accounts for 60% of CGI’s revenue. 2) Consulting: In addition to technical expertise, CGI aims to ensure that its consultants have knowledge of the business issues in their clients’ industries or sectors....

ROYAL BANK OF CANADA $56 (Toronto symbol RY; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.4 billion; Market cap: $78.4 billion; Price-to-sales ratio: 2.1; Dividend yield: 3.6%; SI Rating: Above Average) is Canada’s largest bank, with total assets of $655.0 billion. Royal is seeing strong demand for loans because of low interest rates. As well, improving financial markets have helped its capital-markets division attract new business. This division, which Royal has steadily expanded in the past few years, helps companies raise capital by selling shares and issuing debt. It now provides 25% of the bank’s total revenue. In the year ended October 31, 2009, Royal’s revenue rose 34.9%, to $29.1 billion from $21.6 billion in the prior year. Earnings rose 6.7%, to $4.9 billion from $4.4 billion. However, earnings per share fell 3.0%, to $3.28 from $3.38, on 7% more shares outstanding. The 2009 figures exclude a $1-billion writedown of goodwill related to Royal’s U.S. operations. Its U.S. and international banking division supplies roughly 10% of its revenue....

TORONTO-DOMINION BANK $64 (Toronto symbol TD; Conservative Growth Portfolio, Finance sector; Shares outstanding: 858.8 million; Market cap: $55.0 billion; Price-to-sales ratio: 2.2; Dividend yield: 3.8%; SI Rating: Above Average) is the second-largest Canadian bank, with total assets of $557.2 billion. TD has now fully integrated Commerce Bancorp Inc. with its other U.S. banking operations. The bank paid $8.5 billion for Commerce in May 2008. It now operates as “TD Bank,” and has 1,028 branches from Maine to Florida. The U.S. banking business provides 16% of TD’s overall profits. If you include $276-million in integration costs and $576-million of writedowns of securities, TD’s earnings in the year ended October 31, 2009, fell 18.6%, to $3.1 billion from $3.8 billion in the prior year. Earnings per share fell 28.7%, to $3.47 from $4.87, on more shares outstanding. Revenue rose 21.8%, to $17.9 billion from $14.7 billion, as low interest rates spurred strong demand for new loans....

BANK OF NOVA SCOTIA $47 (Toronto symbol BNS; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.0 billion; Market cap: $47.0 billion; Price-to-sales ratio: 1.9; Dividend yield: 4.2%; SI Rating: Above Average) is Canada’s third-largest bank, with total assets of $496.5 billion. Bank of Nova Scotia is the most international of the big-five banks. It gets about 30% of its earnings from its overseas operations, which are mainly in the Caribbean, Latin America and Asia. These businesses have struggled lately, as the global recession pushed up loan losses. But the rebounding world economy gives them long-term appeal. The bank earned $3.5 billion in the year ended October 31, 2009. That’s up 13.0% from $3.1 billion in the prior year. Earnings per share rose 8.5%, to $3.31 from $3.05, on more shares outstanding. If you exclude writedowns of securities, it would have earned $3.70 a share in 2009. Revenue rose 21.7%, to $14.5 billion from $11.9 billion....

BANK OF MONTREAL $54 (Toronto symbol BMO; Conservative Growth Portfolio, Finance sector; Shares outstanding: 550.5 million; Market cap: $29.7 billion; Price-to-sales ratio: 1.9; Dividend yield: 5.2%; SI Rating: Above Average) is the fourth-largest Canadian bank, with total assets of $388.5 billion. The bank earned $1.8 billion in fiscal 2009, down 9.7% from $2.0 billion in the prior year. Earnings per share fell 18.1%, to $3.08 from $3.76, on more shares outstanding. Excluding writedowns and other unusual items, the bank would have earned $4.02 a share in fiscal 2009. Revenue rose 8.4%, to $11.1 billion from $10.2 billion. That’s mainly because low interest rates continue to push up demand for mortgages and other loans....

CANADIAN IMPERIAL BANK OF COMMERCE $66 (Toronto symbol CM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 384.0 million; Market cap: $25.3 billion; Price-to-sales ratio: 1.8; Dividend yield: 5.3%; SI Rating: Above Average) is Canada’s fifth-largest bank, with assets of $335.9 billion....

Sometimes a stock moves downward and creates what we consider a buying opportunity. We apply the term when we feel an attractive stock has dropped in price for reasons that are of a passing nature, or that are exaggerated in investors’ minds.

This shouldn’t be confused with “averaging down.” That’s when you buy more of a stock you own that has fallen in price, mainly to lower your average cost per share....

On January 15, Stock Picker’s Digest, our newsletter for aggressive investing, will unveil a stock that’s well positioned for explosive profits in 2010 — and if you hold it for a couple of years, there’s a great chance that it could skyrocket even further. In fact, we think this company’s prospects are so bright we’ve named it Stock Picker’s Digest’s #1 stock pick for the coming year. This Canadian firm has staked out a strong position in its industry. Plus, its low cost structure puts it in a strong position to profit as the economy recovers. And these advantages are only the beginning. The company has recently made a big investment in improving its computer systems. And it has a great reputation for customer service — an often underappreciated factor in attracting and retaining clients....

When you subscribe to The Successful Investor, our flagship publication, you get access to three high-quality portfolios we’ve built to help you profit over the long term. We update all three regularly, and keep them under constant review to make sure you always get our very best picks among high return investments. (We’ve updated our buy/sell/hold advice on a company we’ve covered in our Portfolio for Aggressive Growth below. Read on for further details.)...

Growth stocks are companies whose earnings growth is expected to be above the market average. These firms often pay little or no dividends. Instead, they invest any extra money in furthering their growth. These stocks are long-term investments. They can be well-known stars or quiet gems, but they share the common trait of growing at a higher than average rate within their industry, or within the market as a whole. (You can get all the details on how to select appropriate stocks for your portfolio in our new special report, “Canadian Stock Market Basics: How to Trade Stocks and Make Good Investments in Canada.” Click here to download this free report and get started right away.)...

Canada’s telephone companies continue to face rising competition. Along with wireless and cable companies, Internet-based phone services, such as Skype, have also gained in popularity. Now, three new wireless providers (Globalive’s WIND Mobile, DAVE Wireless, and Public Mobile) are set to enter the Canadian market. This new competition will put pressure on BCE Inc. (symbol BCE on Toronto), Canada’s largest telephone service provider. In light of this and other developments surrounding this conservative investing stock, we’ve updated our buy/sell/hold advice in the latest Canadian Wealth Advisor, our newsletter for safety-conscious conservative investing....

ALTAMIRA SCIENCE & TECHNOLOGY FUND $7.59 (CWA Rating: Aggressive) (Altamira Investment Services, The Exchange Tower, 130 King Street West, Suite 900, Toronto, Ont. M5X 1K9. 1-800-263-2824; Web site: www.altamira.com. No load — deal directly with the company) mostly invests in U.S. companies in the telecommunications, biotechnology, environmental-technology, health-care and computer industries. Altamira Science & Technology’s top holdings include Apple, Microsoft Corp., Google, Hewlett-Packard Co., Oracle Corporation, Electronic Arts, Pfizer, Intel, EMC Corp., Cisco Systems, IBM, Qualcomm, Canon and Merck & Co. The fund’s MER is 2.35%. The $44-million fund gained 21.7% (in Canadian dollars) in the year ended November 30, 2009. The Nasdaq index rose 19.4% (also in Canadian funds) in the same period. Over the last 10 years, the fund has lost 11.3% annually, compared to a loss of 7.4% annually for the Nasdaq index....

ISHARES MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND $29.16 (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, 74.6%; Poland, 12.9%; Czech Republic 6.4% and Hungary, 6.1%. iShares MSCI Emerging Markets Eastern Europe Index Fund’s top holdings are Gazprom (Russia: gas utility), 22.4%; Lukoil (Russia: oil and gas), 10.9%; Sberbank (Russia: bank), 7.5%; MMC Norilsk Nickel (Russia: mining), 4.7%; Rosneft Oil (Russia: oil and gas), 4.3%; Mobile TeleSystems (Russia: wireless), 3.9%; CEZ AS (Poland: utility), 3.5%; OTP Bank (Hungary: bank), 3.0%; PKO Bank Polski SA (Poland: bank), 2.9%; and Surgutneftagaz (Russia: oil and gas), 3.7%. The fund’s industry breakdown is as follows: Energy, 49.2%; Banks, 20.4%; Materials, 11.9%; Telecommunication Services, 10.8%; Utilities, 3.5%; Pharmaceuticals, Biotechnology and Life Sciences, 1.9%; Software and Services, 0.5%; Media, 0.5%; Food, Beverages and Tobacco, 0.5%; and Real Estate, 0.5%.The ETF has an expense ratio of 0.72%....

ISHARES MSCI BRAZIL INDEX FUND $77.79 (New York Exchange symbol EWZ; buy or sell through brokers), is an ETF that is designed to track the Brazilian stock market. The fund’s top holdings are Petrobras preferred shares (energy), 12.5%; Petrobras common shares, 10.2%; Cia Vale do Rio Doce (mining) preferred shares, 9.4%; Cia Vale do Rio Doce common shares, 7.0%; Itau Unibanco Multiplo SA (banking), 7.8%; Banco Bradesco preferred shares (banking), 4.7%; Cia de Bebidas das Americas preferred shares (beer and other beverages), 3.2%; Cia Siderurgica Nacional SA (steel), 3.0%; Gerdau SA (steel), 2.4%; and OGX Petroleo e Gas Patricipa (energy), 2.4%. The fund’s industry breakdown is as follows: Materials, 28.5%; Energy, 25.9%; Financials, 19.5%; Consumer Staples, 7.9%; Utilities, 7.0%; Telecommunication Services, 4.0%; Consumer Discretionary, 2.4%; Information Technology, 2.1%; and Industrials, 2.0%. The ETF has an expense ratio of 0.63%....