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SYMANTEC CORP. $17 (Nasdaq symbol SYMC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 806.2 million; Market cap: $13.7 billion; Price-to-sales ratio: 2.3; No dividends paid; WSSF Rating: Average) makes software that protects computers from viruses and intruders. Computer sales have risen with the recent launch of Microsoft’s Windows 7 operating system. Symantec has deals to pre-install its Norton Anti-Virus software on new computers, so it stands to gain as more consumers buy new computers to get Windows 7. As well, the company has shifted its focus to selling services to its business customers. Long-term service contracts give Symantec more predictable revenue streams, and cut its risk. In Symantec’s third quarter, which ended January 1, 2010, its earnings before one-time items fell 7.4%, to $326.0 million from $352.0 million a year earlier. Earnings per share fell 4.8%, to $0.40 from $0.42, on fewer shares outstanding. Revenue rose 0.8%, to $1.55 billion from $1.54 billion. Symantec gets about half of its revenue from outside the U.S. If you adjust for foreign-exchange rates, revenue would have fallen by 3%....

ADOBE SYSTEMS INC. $35 (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 524.1 million; Market cap: $18.3 billion; Price-to-sales ratio: 6.0; No dividends paid since June 2005; WSSF Rating: Average) makes Abode Acrobat, which lets users easily create, edit and share electronic documents in the popular PDF format. As well, graphic designers use Adobe’s Creative Suite of programs to create web pages and print publications. The company also makes Adobe Flash. This program lets web sites display graphics and animation. In October 2009, Adobe completed its $1.8-billion purchase of Omniture Inc., which makes software that measures and analyzes web-site traffic. Adobe will sell this software to its customers, who can use the information it provides to improve their web pages and increase their online ad revenues. Omniture will add around $335 million a year to Adobe’s revenue. Adobe earned $814.7 million, or $1.54 a share, in the year ended November 27, 2009. That’s down 28.3% from $1.1 billion, or $2.07 a share, in the prior year. These figures exclude several unusual items, including costs related to the Omniture purchase. Revenue fell 17.7%, to $2.9 billion from $3.6 billion....

MICROSOFT CORP. $29 (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 8.8 billion; Market cap: $255.2 billion; Price-to-sales ratio: 4.2; Dividend yield: 1.8%; WSSF Rating: Above Average) is the world’s largest software company. Its Windows operating system runs 90% of the world’s computers. As well, the company’s Office suite of programs dominates the business-software field. Together, Windows and Office account for 60% of Microsoft’s revenue and 80% of its earnings. Microsoft is working to cut its reliance on Windows and Office. For example, its new 10-year alliance with Internet search provider Yahoo! Inc. (Nasdaq symbol YHOO) will help both companies increase their share of the online advertising market. In Microsoft’s second quarter, which ended December 31, 2009, it earned $6.7 billion, or $0.74 a share. That’s up 59.6% from $4.2 billion, or $0.47 a share, a year earlier. Revenue rose 14.4%, to $19.0 billion from $16.6 billion. The company spends around 11% of its revenue on research....

YUM! BRANDS INC. $34 (New York symbol YUM; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 469.3 million; Market cap: $16.0 billion; Price-to-sales ratio: 1.5; Dividend yield: 2.5%; WSSF Rating: Average) operates over 37,000 restaurants in more than 110 countries. It has five main banners: KFC (fried chicken), Pizza Hut, Taco Bell (Mexican food), A&W (hamburgers) and Long John Silver’s (seafood). Yum’s sales rose 20.6%, from $9.3 billion in 2005 to $11.3 billion in 2008. In 2009, sales fell 4.1%, to $10.8 billion. That’s mainly because of the negative impact of exchange rates. If you exclude exchange rates, sales would have risen by 1%. Same-store sales in 2009 fell 1% in China and 5% in the U.S., but rose 1% in Yum’s other overseas markets. Earnings rose 40.6%, from $762 million in 2005 to $1.1 billion in 2009. Earnings per share rose 73.4%, from $1.28 in 2005 to $2.22 in 2009, on fewer shares outstanding. If you exclude unusual items, per-share earnings would have risen 70.9%, from $1.27 in 2005 to $2.17 in 2009....

MCDONALD’S CORP. $65 (New York symbol MCD; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.1 billion; Market cap: $71.5 billion; Price-to-sales ratio: 3.1; Dividend yield: 3.4%; WSSF Rating: Above Average) is the world’s largest fast-food company by sales. It has around 32,500 restaurants in over 120 countries. Rising prosperity in developing countries is making McDonald’s food more affordable to more consumers. Overseas markets now supply 65% of its revenue, and nearly half of its earnings. McDonald’s sales rose 15.0%, from $20.5 billion in 2005 to $23.5 billion in 2008. Sales fell 3.3% in 2009, to $22.7 billion. That’s because the rising U.S. dollar hurt the contribution of its international outlets. If you disregard foreign-exchange rates, sales would have risen 2% in 2009. Overall same-store sales rose 3.8% in 2009, mainly on gains in the U.S. (up 2.6%), Europe (up 5.2%) and the Asia Pacific region (up 3.4%)....

The p/e ratio (the ratio of a stock’s price to its per-share earnings) is one of many handy investing tools. Typically, you calculate p/e’s using a stock’s current price and its earnings for the previous 12 months. The general rule is that the lower a stock’s p/e, the better. And a p/e of less than, say, 10, represents excellent value. A low p/e implies more profit for every dollar you invest. There’s no doubt that p/e ratios are an important part of many investors’ decision making. These financial ratios are published regularly on the Internet and in newspapers, and are widely followed....

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As you consider how to manage your tax bill for the current income-tax season, you really shouldn’t be without our new free report, Capital Gains Canada: 7 Secrets for Managing your Canadian Capital Gains Tax Liabilities....

We think investors will profit most — and with the least risk — by buying shares of well-established, dividend-paying stocks with strong business prospects. These are companies that have strong positions in healthy industries. They also have strong management that will make the right moves to remain competitive in a changing marketplace. Here are 3 ways dividend paying stocks can help improve your portfolio’s long-term returns:...

When clients join our Successful Investor Wealth Management service, they often ask us whether they should hold bonds or focus more heavily on stocks. This is a particularly important question for investors who rely on their portfolios for income. It’s important to note that there is no single “best portfolio” for every investor. Higher potential for loss comes with higher potential for returns, so the question of whether to hold stocks or bonds depends partly on your temperament and financial goals. Bonds provide steady income and a guarantee to repay the principal at maturity, so lowering your common stock exposure in favour of bonds can have some positive effects. First, you may reduce your portfolio’s overall volatility. Second, you are likely to cut your overall risk of loss....

The U.S. restaurant industry has faced tough challenges over the past 18 months. That’s because the economic downturn has prompted more consumers to eat at home, or to spend less when they dine out. The best U.S. restaurants have done a good job of cutting costs during the slowdown. Some have improved their menus by introducing new items and focusing on value-priced meals. And a few have taken advantage of the slowdown to expand into new markets with strong growth potential. That has helped these restaurants report improved results. It also puts them in a good position to profit as the global economy continues to improve. In light of the improvement in the U.S. restaurant industry, we’ve updated our buy/sell/hold advice on two U.S. restaurant growth stock picks, Ruby Tuesday (symbol RT on New York), and Chipotle Mexican Grill (symbol CMG on New York), in the current issue of Stock Pickers Digest, our newsletter for more aggressive investors....

Small cap stocks are companies with a “market cap” (the value of shares they have outstanding) below $2 billion, or some other arbitrary figure. (In a recent Wall Street Stock Forecaster, we updated our buy/sell/hold advice on a U.S. small cap stock that’s up nearly 63% since March 2009. See below for further details.) Small cap stocks have the potential for strong gains, but they are generally more volatile than large-cap stocks. Temporary setbacks, such as a poor quarterly earnings report or the loss of a contract, can quickly cut their share prices. That’s why we view even the best small-caps as aggressive, and advise investors not to overindulge in small caps....

8 tips for spotting the best Canadian gold stocks

Many Canadian firms have tried to expand into the U.S. over the years. Some, like Tim Hortons (symbol THI on Toronto), have had difficulty in the United States. Other companies’ expansion efforts have failed miserably. Canadian Tire (symbol CTC.A on Toronto) provides a memorable example of a failed U.S. expansion. In 1982, the retailer bought a chain of Whites automotive-retail stores in Texas. By 1985, Canadian Tire had lost $300 million on this purchase. That’s when the company decided to sell the division and retreat to Canada. Its stock price has since gone up more than 600%. ...

MANITOBA TELECOM SERVICES INC. $31 (Toronto symbol MBT; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 64.7 million; Market cap: $2.0 billion; Price-to-sales ratio: 1.7; Dividend yield: 8.4%; SI Rating: Average) is the main provider of telephone services in Manitoba. The company’s Allstream subsidiary sells integrated telephone, Internet and other communication services to businesses across Canada. The company gets 70% of its profit from its Manitoba telephone business. However, a new alliance with Rogers Communications Inc. (Toronto symbol RCI.B) should broaden its geographic reach. The two companies are building a new high-speed wireless network in Manitoba. This alliance will make Manitoba Telecom more competitive in Manitoba, and let the company use Rogers’ existing network to sell more wireless services to its business customers in other parts of Canada. In 2009, Manitoba Telecom earned $103.9 million, or $1.61 a share. That’s down 29.5% from $147.4 million, or $2.28 a share, in the prior year. If you disregard restructuring costs and other unusual items, earnings per share would have fallen 12.9%, to $2.64 from $3.03. Revenue fell 3.1%, to $1.8 billion from $1.9 billion....

BELL ALIANT REGIONAL COMMUNICATIONS INCOME FUND $25 (Toronto symbol BA.UN; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 228.4 million; Market cap: $5.7 billion; Price-to-sales ratio: 1.8; Dividend yield: 11.6%; SI Rating: Above Average) provides telephone services in Atlantic Canada, as well as rural parts of Ontario and Quebec. As part of the deal that created the trust in 2006, Bell Aliant transferred its wireless operations to BCE, which owns 45% of the trust. Bell Aliant earned $373.0 million in 2009. That’s up 10.8% from $336.6 million in 2008. Earnings per unit rose 11.5%, to $2.33 from $2.09, on more units outstanding....

TELUS CORP. (Toronto symbols T $33 and T.A $32; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 318.0 million; Market cap: $10.5 billion; Price-to-sales ratio: 1.1; Dividend yield: 5.8%; SI Rating: Above Average) provides telephone services in British Columbia, Alberta and eastern Quebec. It also sells wireless services through a nationwide network. The company expects its revenue to rise by 2% to 5% in 2010, to between $9.8 billion and $10.1 billion. Most of the gain will come from its wireless division, which contributes half of Telus’s revenue and earnings. This division recently upgraded its networks to handle a wider variety of cellphones, including Apple’s popular iPhone smartphone. Telus should also profit as more people use their cellphones to send email, access the Internet and download software. That’s good news for Telus, since it earns higher fees for Internet access than regular phone calls. Moreover, the company’s wireless upgrades will help it capture more roaming fees from foreign tourists and business travellers who use their phones while in Canada....

BCE INC. $29 (Toronto symbol BCE; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 767.2 million; Market cap: $22.2 billion; Price-to-sales ratio: 1.3; Dividend yield: 6.0%; SI Rating: Above Average) provides telephone and Internet services in Ontario and Quebec. It also sells wireless and satellite TV services across Canada. BCE is starting to see the benefits of a restructuring plan that it began in July 2008. Under the plan, the company cut jobs, relocated employees and sold extra real estate. These moves should save BCE $400 million annually by the end of this year. In 2009, BCE’s earnings rose 6.5%, to $1.9 billion from $1.8 billion in the prior year. Per-share earnings rose 11.1%, to $2.50 from $2.25, on fewer shares outstanding. These figures exclude restructuring costs and other unusual items. Revenue rose 0.4%, to $17.74 billion from $17.66 billion....

AGRIUM INC. $67 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 157 million; Market cap: $10.5 billion; Price-to-sales ratio: 1.1; Dividend yield: 0.2%; SI Rating: Average) makes fertilizers from natural gas at 10 plants in North America and Argentina. It also produces other fertilizers, such as potash and phosphate, from mines in Ontario, Alberta, Saskatchewan and Idaho. Agrium sells its products to industrial users and individual farmers through 1,000 retail stores in Canada, the U.S., Argentina and Chile. Agrium’s retail outlets cut its reliance on bulk fertilizer sales. Thanks to rising fertilizer prices, Agrium’s sales rose 204.5%, from $3.3 billion in 2005 to $10.0 billion in 2008 (all amounts except share price and market cap in U.S. dollars). However, sales fell 9.0%, to $9.1 billion on lower 2009 fertilizer prices....

POTASH CORP. OF SASKATCHEWAN INC. $112 (Toronto symbol POT; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 296.0 million; Market cap: $33.2 billion; Price-to-sales ratio: 7.8; Dividend yield: 0.4%; SI Rating: Average) is the world’s largest fertilizer producer. It has six potash mines in Saskatchewan and one in New Brunswick. Five of its mines have reserves of between 60 and 97 years. Potash Corp.’s sales rose 145.5%, from $3.8 billion in 2005 to $9.4 billion in 2008 (all amounts except share price and market cap in U.S. dollars). That’s mainly because potash prices climbed from $143 a tonne in 2005 to $449 a tonne in 2008. Thanks to the higher prices, Potash Corp.’s earnings soared from $1.63 a share (or a total of $542.9 million) in 2005 to $11.01 a share (or $3.5 billion) in 2008. Cash flow per share rose 411.9%, from $2.53 in 2005 to $12.95 in 2008....

Last week, Newmont Mining (symbol NEM on New York), one of the world’s biggest gold producers, said that it believes that gold could rise as high as $1,350 U.S. an ounce this year. Gold has fallen from the all-time high of $1,214.80 U.S. that it reached in late 2009, and now trades around $1,092 U.S. We cover Newmont in our Wall Street Stock Forecaster and Canadian Wealth Advisor newsletters. See below for more on this gold mining stock’s wide-ranging operations. ...

Here are four common mistakes to avoid when investing in the stock market. All can seriously hinder your portfolio’s long-term results. 1. Focusing too heavily on cutting costs: Cutting the costs of investing has an immediate, obvious benefit: it leaves you with more money. But some cost-cutting investment techniques can wind up costing you money in the long run. For example, some investors routinely refuse to pay the market price for stocks when they buy. They always put a bid in below the offer price, in hopes of buying at a slightly better price. However, some of your good investments are going to go up as soon as you buy, and keep going up. Other investments will go down. If you always put in a bid below the current market price when you buy, you’ll filter out all your good investments. You’ll save a few cents from time to time. But you’ll always buy all your bad investment choices, and none of your good investments....

A subscriber to Stock Pickers Digest, our newsletter for aggressive investing, recently asked us how much importance we give to a company’s name when we’re selecting growth stock picks to recommend in our newsletters and investment services. He felt that a poorly thought-out company name may reflect a poorly thought-out business plan and a low chance of success. He specifically asked about Tucows Inc. (symbol TC on Toronto). We recently updated our buy/sell/hold advice on the company in a Stock Pickers Digest Email Hotline. See below for more details on this growth stock pick’s outlook. ...

Our Successful Investor rating system is a key guide we use to make stock market picks for our newsletters and investment services, including Wall Street Stock Forecaster, our publication that focuses on top-quality U. S. stock market picks. We continue to recommend that Canadian investors hold 25% to 30% of their portfolios in well-established U.S. companies, like the stock market picks we recommend in Wall Street Stock Forecaster. To help you quickly and easily determine whether a U.S. stock is appropriate for your portfolio balance and risk tolerance, we display one of our six Successful Investor ratings next to every stock we cover in Wall Street Stock Forecaster.

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We think the long-term outlook for China — and Chinese stocks — is strong. That’s because the country’s huge population is generally younger than North Americans, and large numbers of Chinese have the potential to advance from poverty into the middle class. (One of the best ways for investors to tap into Chinese growth is through low-fee exchange-traded funds. The iShares FTSE/Xinhua China 25 Index Fund is one example of an exchange traded fund that focuses on China. You can get our very latest buy/sell/hold advice on this fund in the latest issue of Canadian Wealth Advisor. See below for further details. ) ...

ISHARES CDN BOND INDEX FUND $29.67 (CWA Rating: Income) (Toronto symbol XBB; buy or sell through a broker) mirrors the performance of the DEX Universe Bond Index. This index consists of a wide range of investment-grade Canadian government and corporate bonds with terms to maturity of more than one year. The 301 bonds in the portfolio have an average term to maturity of 8.62 years. The fund’s MER is 0.30%. The bonds in the index are 85.1% government and 14.9% corporate. The fund sticks with high-quality government bonds from issuers such as Canada Housing Trust, Government of Canada and Province of Ontario, plus high-quality corporate bonds from issuers such as Bank of Montreal, TransCanada Pipelines, Bank of Nova Scotia and Bell Canada....