Search

ISHARES CDN SHORT BOND INDEX FUND $29.35 (CWA Rating: Income) (Toronto symbol XSB; buy or sell through a broker) mirrors the performance of the DEX Short-Term Bond Index. This index consists of a wide range of investment-grade federal, provincial, municipal and corporate bonds with between one- and five-year terms to maturity. The fund currently holds 183 bonds with an average term to maturity of 3.01 years. Top issuers include the Government of Canada, Canada Housing Trust and the Province of Ontario. The bonds in the index are 89.7% government and 10.3% corporate. The fund’s MER is 0.25%....

PRIMARIS RETAIL REAL ESTATE INVESTMENT TRUST $17.47 (Toronto symbol PMZ.UN; Units outstanding: 62.5 million; Market cap: $1.1 billion; SI Rating: Extra Risk; Dividend yield: 7.0%) owns large malls in medium-sized Canadian cities. It also owns major shopping centres in suburbs of large cities. In all, the trust owns 26 properties that contain 9.3 million square feet of leasable area. Primaris has a 96% occupancy rate. Major tenants include Hudson’s Bay, Sears, Shoppers Drug Mart, Loblaw, Reitmans, Canadian Tire and Best Buy. In the three months ended September 30, 2009, Primaris’ revenue fell 0.7%, to $66.1 million from $66.5 million a year earlier. The trust earned less interest on its investments. That offset higher rental revenue. Cash flow per unit fell 14.3%, to $0.30 from $0.35, mainly because of one-time managment and office-restructuring costs. Primaris’ annual distribution of $1.22 gives the units a 7.0% yield....

ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $19.55 (Toronto symbol AP.UN; Units outstanding: 39.0 million; Market cap: $763.3 million; SI Rating: Extra Risk; Dividend yield: 6.8%) owns office buildings in Toronto, Montreal, Quebec City and Winnipeg. These mainly Class I properties contain over 5.8 million square feet of leasable area. Allied has a 96.2% occupancy rate. Class I refers to 19th and early 20th-century light industrial buildings that have been restored and converted to office and retail space. These properties usually feature high ceilings, natural light, exposed beams, interior brick and hardwood floors. Allied has 54 mainly Class I properties in Toronto (these contain 53.7% of the trust’s leasable area). It also has eight Class I buildings in Montreal (34.9%), seven in Winnipeg (6.7%) and six in Quebec City (3.2%)....

VANGUARD GROWTH ETF $51.35 (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. The fund has an MER of just 0.15%. The $15.7-billion fund’s top holdings are Microsoft, IBM, Apple Inc., Cisco Systems, Wal-Mart Stores, Google Inc., Hewlett-Packard, Oracle Corp., Philip Morris International and PepsiCo. Vanguard Growth ETF is broken down by economic segment as follows: Information Technologies (36.1%), Health Care (13.8%), Consumer Staples (11.3%), Consumer Discretionary (11.8%), Industrials (8.0%), Energy (7.5%), Financials (5.9%), Materials (4.5%), Telecommunication Services (0.8%) and Utilities (0.3%)....

VANGUARD EMERGING MARKETS ETF $38.72 (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 0.27%. The fund’s top holdings are China Mobile (China: wireless), Gazprom (Russia: gas utility), Samsung Electronics (South Korea: electronics), Teva Pharmaceutical Industries, America Movil SA de CV (Latin America: wireless), Petroleo Brasileiro SA (Brazil: oil and gas), China Construction Bank, Vale SA (Brazil: mining) and Industrial and Commercial Bank of China. The $32.7-billion Vanguard Emerging Markets ETF’s largest holdings by country are: China (17.8%), Brazil (17.0%), South Korea (12.8%), Taiwan (11.3%), India (7.6%), South Africa (6.9%), Russia (6.5%), Mexico (4.4%), Israel (2.8%), Malaysia (2.7%), Indonesia (1.9%), Turkey (1.5%), Chile (1.5%), Thailand (1.4%), Poland (1.3%), Hungary (0.6%), Philippines (0.5%), Peru (0.5%), Czech Republic (0.4%), Colombia (0.3%) and Egypt (0.2%)....

SPDR S&P CHINA ETF $67.30 (New York Exchange symbol GXC; buy or sell through brokers), is an ETF that aims to track the S&P China BMI Index. This index is made up of all of the publicly traded Chinese stocks that are available to foreign investors. Right now, this ETF holds 136 stocks. The $548.9-million fund’s top holdings are: China Mobile, 9.1%; China Life Insurance, 6.2%; Industrial & Commercial Bank of China, 5.6%; China Construction Bank, 4.8%; PetroChina, 4.5%; CNOOC Ltd., 4.0%; Tencent Holdings, 2.7%; China Petroleum & Chemical, 2.6%; Bank of China, 2.5%; and China Shenhua Energy, 2.4%. The fund’s top industry holdings are: Financials (30.9%), Oil and Gas (16.5%), Telecommunications (11.6%), Industrials (11.4%), Information Technology (10.5%), Consumer Discretionary (7.0%), Basic Materials (5.1%) and Consumer Staples (4.4%)....

ISHARES FTSE/XINHUA CHINA 25 INDEX FUND $38.90 (New York Exchange symbol FXI; buy or sell through brokers) is an ETF that aims to track the FTSE/Xinhua China 25 Index, which is made up of the 25 largest and most liquid Chinese stocks. All of the stocks in the index trade on the Hong Kong exchange. Some also trade as American Depositary Receipts (ADRs) on the New York exchange. The $8.2-billion fund’s top holdings are China Mobile, 10.1%; China Construction Bank, 9.6%; Industrial & Commercial Bank of China, 8.5%; China Life Insurance, 7.1%; Bank of China, 6.2%; China Merchants Bank, 4.1%; China Petroleum & Chemical, 4.0%; PetroChina, 4.0%; Ping An Insurance Group, 4.0%; and CNOOC Ltd., 3.9%. The fund’s holdings give it the following industry breakdown: Financials (46.8%), Telecommunications (17.8%), Oil and Gas (11.8%), Basic Materials (11.6%), Industrials (8.7%), Utilities (1.8%) and Consumer Services (1.6%)....

In mining exploration, an “anomaly” is a geological formation that might attract a prospector’s interest. However, one rule of thumb is that you have to look at 1,000 anomalies to find one prospect. And fewer than one prospect in a thousand turns into a mine. In other words, finding a mine is a million-to-one shot. That’s one reason why junior mining stocks are highly speculative. Another reason is that it’s much easier to launch and promote one of these stocks than it is to build a profitable business. So junior mines attract more than their share of unscrupulous operators and stock promoters. But there are little-known ways to cut your risk. Here are 9 “secrets” we use to pick junior mines to analyze in our Stock Pickers Digest newsletter. We’re sure they can help you find the gems among the rocks in this fast-changing industry:...

Online stock investing can look like a great way to build wealth, but it has many hidden dangers. Trading too frequently: The main risk is that the lower costs and higher speeds of online stock investing can quickly lead otherwise conservative investors to trade too frequently. That can lead you to sell your best picks when they are just getting started. Trading stocks online may even prompt conservative investors to take up short-term trading or day trading. That’s just another danger of trading stocks online, because there’s a large random element in short-term stock-price fluctuations that you just can’t get away from....

One part of our three-pronged investing program is to spread your money out across the five main stock sectors of the economy (Manufacturing & Industry; Resources; Consumer; Finance; Utilities). (The other two parts are to hold mostly high-quality, dividend paying stocks, and downplay stocks in the broker/public-relations limelight.) Many stocks clearly fit in certain stock sectors. Royal Bank, for example, obviously goes in the Finance sector. But sometimes correctly categorizing a stock requires a judgment call. That’s the case with La-Z-Boy Inc. (symbol LZB on New York). We update our buy/sell/hold advice on La-Z-Boy in the current issue of Wall Street Stock Forecaster, our newsletter that focuses on U.S. stocks. See below for further details on this rapidly changing company.

...

These days, many investors who are approaching retirement worry that their retirement planning won’t generate the income stream they were banking on once they’ve left the workforce. Some investors in this situation look for what brokers sometimes refer to as a “rescue stock” — a can’t miss trading idea that can make up for the shortfall in their retirement planning. This, of course, is unrealistic. If such a low-risk, high-potential stock existed, why would you buy anything else? In fact, if you’re heading into retirement and are short of money, you should move your retirement planning in the opposite direction: aim for safer investments, rather than one last gamble....

CAMPBELL SOUP CO. $33 (New York symbol CPB; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 342.9 million; Market cap: $11.3 billion; Price-to-sales ratio: 1.5; Dividend yield: 3.3%; WSSF Rating: Above Average) is the world’s largest maker of canned soups. It also makes Prego canned pasta and sauces, Pepperidge Farm cookies and V8 vegetable juices. Like Heinz, Campbell aims to spur long-term growth by increasing sales in emerging markets, such as China and Russia. The company now gets 30% of its overall sales from international markets. Campbell is also doing a good job of developing new products. For example, it now sells low-sodium soups and baked goods made from whole grains. These premium products should appeal to health-conscious consumers. These foods also generate higher profit margins than Campbell’s regular products....

GENERAL MILLS INC. $72 (New York symbol GIS; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 329.5 million; Market cap: $23.7 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.7%; WSSF Rating: Above Average) is the second-largest maker of breakfast cereals in the U.S., after Kellogg. The company’s major brands include Cheerios, Wheaties and Total. General Mills also makes Betty Crocker baking mixes, Green Giant canned and frozen vegetables, and Yoplait yogurt. In its second quarter, which ended November 29, 2009, General Mills earned $565.5 million. That’s up 49.5% from $378.2 million a year earlier. Earnings per share rose 52.3%, to $1.66 from $1.09, on fewer shares outstanding. Without unusual items, such as gains on commodity-hedging contracts, earnings per share would have risen 13.2%, to $1.54 from $1.36. Even though General Mills cut the prices of certain products, its sales rose 1.7%, to $4.1 billion from $4.0 billion....

H.J. HEINZ CO. $44 (New York symbol HNZ; Income Portfolio, Consumer sector; Shares outstanding: 315.6 million; Market cap: $13.9 billion; Price-to-sales ratio: 1.4; Dividend yield: 3.8%; WSSF Rating: Above Average) is a leading maker of condiments. Its flagship product, Heinz ketchup, accounts for about 60% of U.S. ketchup sales. The company also makes frozen potatoes (under the Ore-Ida brand), pasta sauces (Classico) and diet foods (Weight Watchers). Heinz gets 60% of its sales from overseas markets, and the company continues to look to foreign markets for growth. That’s partly because rising sales in Mexico, India and Russia are helping it offset lower sales to U.S. restaurants. The falling U.S. dollar is also expanding the contribution of Heinz’s overseas sales. In its second quarter, which ended October 28, 2009, the company’s earnings fell 11.6%, to $0.76 a share from $0.86 a year earlier. However, if you disregard an $0.18-a-share foreign-currency hedging gain in the year-earlier quarter, earnings per share would have risen by 11.8%....

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....

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....

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....

DEL MONTE FOODS CO. $12 (New York symbol DLM, Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 198.2 million; Market cap: $2.4 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.7%; WSSF Rating: Average) makes canned fruits, vegetables, sauces and soups. The company also makes Meow Mix, 9Lives and Milk-Bone brand pet foods. The company earned $62.6 million in its second quarter, which ended November 1, 2009. That’s up 129.3% from $27.3 million a year earlier. Earnings per share rose 121.4%, to $0.31 from $0.14, on more shares outstanding. If you exclude a charge related to the early repayment of senior notes, Del Monte’s earnings would have risen to $0.36 a share in the latest quarter. Del Monte continues to cut costs and improve productivity. For example, it has moved some plants to cut the distance between them and reduce shipping costs. In all, Del Monte’s cost cuts lowered its expenses by $20 million in the latest quarter....

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. ...

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?...