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SHERWIN-WILLIAMS CO. $46 (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 116.9 million; Market cap: $5.4 billion; Price-to-sales ratio: 0.7; WSSF Rating: Above Average) is North America’s largest paint producer. It also operates over 3,300 retail paint stores, which supply 60% of its sales. In 2008, Sherwin’s sales fell 0.3%, to $7.98 billion from $8.01 billion in the prior year. Price increases helped offset lower retail sales volumes. However, sales at its international division grew 7.8% in 2008, partly due to acquisitions of smaller paint producers in Europe and Asia. Overseas markets now account for 20% of Sherwin’s sales. Sherwin’s 2008 earnings dropped 22.5%, to $476.9 million from $615.6 million. The company bought back 6% of its shares in 2008, so earnings per share fell 14.9%, to $4.00 from $4.70. If you exclude writedowns of goodwill, per-share earnings fell 9.8%, to $4.31 from $4.78....

APACHE CORP. $60 (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 334.7 million; Market cap: $20.1 billion; Price-to-sales ratio: 1.7; WSSF Rating: Average) explores for and produces oil and natural gas, mostly in North America. Apache prefers to sell its oil at the current spot price, instead of locking in prices through hedging contracts. This strategy let it take full advantage of rising oil and natural-gas prices in the first half of 2008. Thanks to a 27.5% rise in its average oil prices, and a 25.5% jump in gas prices, Apache’s 2008 earnings rose 30.5%, to $3.8 billion from $2.9 billion in the prior year. Earnings per share climbed 29.6%, to $11.22 from $8.66. The 2008 earnings exclude a $3.6-billion writedown of Apache’s properties that was caused by falling energy prices in the second half of 2008. This is a non-cash accounting adjustment, and had no impact on the company’s cash balances. Apache’s revenue rose 23.9%, to $12.4 billion from $10 billion....

ENCANA CORP. $38 (New York symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 750.4 million; Market cap: $28.5 billion; Price-to-sales ratio: 0.7; WSSF Rating: Average) is a leading North American producer of natural gas and oil. Natural gas accounts for about 80% of EnCana’s production. EnCana focuses on what it calls “key resource plays”. These are unconventional properties, such as early-stage gas fields and oil-sands projects, that have much longer production lives than conventional properties. EnCana’s oil-sands operations consist of two 50- 50 joint ventures with ConocoPhillips — one operates the oil-sands properties, while the other processes the heavy, tar-like oil at refineries in Texas and Illinois. Oil-sands projects cost more to operate and face greater environmental opposition than regular oil fields, so this arrangement cuts EnCana’s risk....

CHEVRON CORP. $64 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2 billion; Market cap: $128 billion; Price-to-sales ratio: 0.7; WSSF Rating: Above Average) is the second-largest integrated oil company in the United States, after ExxonMobil. Oil production supplied 86% of its earnings in 2008; the remaining 14% came from its refineries and retail gas stations. In response to weaker energy prices, Chevron aims to conserve cash by temporarily suspending its sharebuyback program. (In 2008, it repurchased $8 billion of its stock.) It now holds $9.6 billion, or $4.70 a share, in cash, and its total debt of $8.9 billion is a low 7% of its market cap. In 2008, Chevron’s earnings rose 28.1%, to $23.9 billion from $18.7 billion in 2007. Earnings per share rose 33.1%, to $11.67 from $8.77 on fewer shares outstanding. (Chevron’s 2008 earnings included a $600-million gain on the swap of some properties.) Revenue rose 23.6%, to $273 billion from $220.9 billion. Higher oil prices in 2008 offset a 3.4% drop in overall production, mainly due to the disruption caused by hurricanes at its offshore platforms in the Gulf of Mexico....

AUTODESK INC. $14 (Nasdaq symbol ADSK; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 226.3 million; Market cap: $3.2 billion; Price-to-sales ratio: 1.4; WSSF Rating: Average) makes computer-assisted design software that lets engineers and architects visualize, simulate and analyze the performance of their products early in the design process. This saves time and money, and improves the quality of the finished product. Slowing construction activity has hurt demand for Autodesk’s products. In response, the company plans to cut 10% of its workforce and consolidate some of its facilities. Severance and related expenses will cost it $65 million to $75 million. These cost-cutting plans should lower its annual expenses by $130 million. To put these figures in perspective, Autodesk earned $0.45 a share, for a total $104.5 million, in its third fiscal quarter, ended October 31, 2008, up 28.6% from $0.35 a share, or $84.8 million a year earlier. If you disregard a number of non-recurring expenses and gains, earnings per share rose 14.3%, to $0.56 from $0.49. Revenue improved 12.8%, to $607.1 million from $538.4 million. These gains were largely the result of favourable foreign exchange rates and strong sales in emerging markets. International sales account for about 80% of Autodesk’s revenue....

SYMANTEC CORP. $14 (Nasdaq symbol SYMC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 821 million; Market cap: $11.5 billion; Price-to-sales ratio: 1.9; WSSF Rating: Average) makes software that protects computers from viruses and intruders. The company is best known for its top-selling Norton Anti-Virus program. Products aimed at individual computer users supply 30% of Symantec’s revenue, and half of its earnings. Symantec mainly sells its products in retail stores and through online downloads. It also encourages users to renew their licences every year. Selling anti-virus products on a subscription basis gives Symantec predictable revenue streams and cuts its risk. Symantec continues to increase its focus on selling security software and other services to corporate customers, mostly through companies it has acquired. Symantec’s biggest acquisition to date was its $13.5-billion, all-stock purchase of data-storage specialist Veritas in July 2005....

EUROPEAN GOLDFIELDS $3.53 (Toronto symbol EGU; SI Rating: Speculative) (44 (20) 7408 9534; www.egoldfields.com; Shares outstanding: 179.4 million; Market cap: $633.2 million) holds a 95% interest in Hellas Gold. Hellas owns three gold and base-metal deposits in northern Greece: the Stratoni zinc/ lead/silver property, the Olympias gold/zinc/lead/silver project and the Skouries copper/gold property. Production at Stratoni started in September 2005. Permits to develop the Skouries and Olympias projects are moving steadily forward....

CENTERRA GOLD $5.30 (Toronto symbol CG; SI Rating: Speculative) (416-204-1953; www.centerragold.com; Shares outstanding: 216.3 million; Market cap: $1.1 billion) owns 100% of the large Kumtor gold mine in Kyrgyzstan and 100% of the Boroo gold mine in Mongolia. Centerra also holds joint-venture exploration prospects in Nevada, Turkey and Russia, and 100% of the Gatsuurt property in Mongolia. Cameco Corp. owns 53% of Centerra. In the three months ended December 31, 2008, Centerra’s revenues rose 170%, to $241.3 million from $89.4 million. (All figures except share price in U.S. dollars.) Earnings, excluding one-time items, were $0.20 a share, compared to a loss of $0.12 a share a year earlier. Cash flow was $0.48 a share in the latest quarter. Centerra holds cash of $167.4 million, or $0.77 a share, and has no debt....

GENNUM CORP. $4.40 (Toronto symbol GND; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 35.6 million; Market cap: $156.6 million; Price-to-sales ratio: 1.0; SI Rating: Above Average) makes equipment that stores, manipulates and transfers video signals. Foreign markets account for 85% of its total sales. Gennum spends nearly 30% of its revenue on research, which helps it maintain its high share of this niche market. Gennum has $48.7 million, or $1.37 a share, in cash, and just $2 million in debt (all amounts in U.S. dollars except share price and market cap), so it can afford these research costs. In the year ended November 30, 2008, earnings rose 6.9%, to $0.62 a share, for a total of $22.0 million, from $0.58 a share ($20.9 million) a year earlier. These figures exclude unusual items. Sales grew 24.7%, to $126.9 million from $101.8 million....

CAE INC. $7.39 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 254.9 million; Market cap: $1.9 billion; Price-to-sales ratio: 1.3; SI Rating: Average) is a leading maker of flight simulators. It also provides pilot-training services in 20 countries. CAE gets 90% of its revenue from customers outside of Canada. The slowing economy could hurt simulator demand from airlines, which operate in a cyclical industry. However, CAE’s growing military operations help cut its risk. In fact, the company recently won several new military-related contracts worth a total of $80 million. Military operations account for 45% of CAE’s revenue. In its third fiscal quarter ended December 31, 2008, CAE’s revenue rose 23.1%, to $424.6 million from $344.8 million a year earlier. Earnings improved 32.9%, to $53.3 million from $40.1 million. Earnings per share rose 31.3%, to $0.21 from $0.16. CAE typically spends around 6% of its revenue on research....

CANADIAN UTILITIES LTD. $39 (Toronto symbol CU; Income Portfolio, Utilities sector; Shares outstanding: 125.5 million; Market cap: $5 billion; Price-to-sales ratio: 2.0; SI Rating: Above Average) distributes electricity and natural gas in Alberta. It also operates power plants and sells its expertise to other companies. Canadian Utilities recently raised its quarterly dividend by 6.0%, to $0.3525 a share from $0.3325. The new annual rate of $1.41 yields 3.6%. It has increased its dividend each year since 1972. In the three months ended September 30, 2008, Canadian Utilities earned $0.57 a share, for a total $71.3 million, before unusual items, up 1.8% from $0.56 ($70.6 million) a year earlier. Higher depreciation charges at its gas operations offset gains from its engineering-services division. Revenue jumped 30.3%, to $638.4 million from $489.9 million, partly due to higher power rates....

FORTIS INC. $23 (Toronto symbol FTS; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 169.2 million; Market cap: $3.9 billion; Price-to-sales ratio: 0.9; SI Rating: Above Average) generates and distributes electricity in five Canadian provinces. It also owns power plants in the U.S. and the Caribbean, as well as hotels and commercial real estate in Atlantic Canada. Regulated businesses account for over 90% of Fortis’s revenue, which gives it plenty of steady cash flow for dividends. In fact, the company has increased its dividend each year for the past 36 years. The current rate of $1.04 yields 4.5%. Fortis is also enjoying the benefits of its July 2007 purchase Terasen Inc., which distributes natural gas in B.C. Fortis’s earnings rose 26.9%, to a record $245 million in 2008 from $193 million in 2007. The gain was mainly because of $118 million from Terasen, compared to $50 million for the 7.5 months that Fortis owned it in 2007. Earnings per share rose 15.2%, to $1.52 from $1.32 on 14% more shares outstanding. Revenue rose 43.6%, to $3.9 billion from $2.7 billion....

TRANSALTA CORP. $21 (Toronto symbol TA; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 198 million; Market cap: $4.2 billion; Price-to-sales ratio: 1.3; SI Rating: Average) operates 50 electrical power plants in North America and Australia. Unlike TransCanada, TransAlta prefers to own unregulated plants. This increases its exposure to sometimes volatile electricity prices. But coal is TransAlta’s main fuel, and its ownership of three coal mines helps keep its costs down. In 2008, TransAlta’s earnings grew 9.8%, to $290 million from $264 million in 2007. Earnings per share rose 11.5%, to $1.46 from $1.31 on fewer shares outstanding. These figures exclude unusual items. Revenue rose 12.1%, to $3.1 billion from $2.8 billion....

TRANSCANADA CORP. $33 (Toronto symbol TRP; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 616 million; Market cap: $20.3 billion; Price-to-sales ratio: 2.2; SI Rating: Above Average) operates pipelines that pump natural gas from Alberta to eastern Canada and the United States. It also owns or invests in 19 electrical power plants. Most of TransCanada’s businesses operate under some form of regulation by government agencies. That limits the prices it can charge, but it also provides steady revenue streams for new investments, debt repayments and dividends. TransCanada just raised its dividend for the ninth year in a row. The new annual rate of $1.52 yields 4.6%. Meanwhile, TransCanada’s earnings before nonrecurring items in 2008 rose 16.3%, to $1.3 billion from $1.1 billion in 2007. Earnings per share rose just 8.2%, to $2.25 from $2.08. That’s because the company issued over $1 billion of new common shares during the year to pay for acquisitions and invest in new projects. Cash flow per share rose 7.2%, to $5.28 from $4.93. However, revenue fell 2.4%, to $8.6 billion from $8.8 billion....

CANADIAN IMPERIAL BANK OF COMMERCE $46 (Toronto symbol CM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 380.8 million; Market cap: $17.5 billion; Price-to-sales ratio: 1.3; SI Rating: Above Average) is Canada’s fifth-largest bank, with assets of $353.9 billion. CIBC is looking to cut its risk by focusing on retail banking, which now represents 65% of its business. CIBC wants to raise this to 75%. CIBC is also cutting its exposure to risky assets. It recently sold $1.05 billion U.S. of notes backed by American subprime mortgages to private-equity firm Cerberus Capital. The bank is not obligated to compensate Cerberus if these underlying mortgages fail, so this deal should help shield CIBC from future charges....

BANK OF MONTREAL $30 (Toronto symbol BMO; Conservative Growth Portfolio, Finance sector; Shares outstanding: 503 million; Market cap: $15.1 billion; Price-to-sales ratio: 0.8; SI Rating: Above Average) is Canada’s fourth-largest bank, with assets of $416.1 billion. Bank of Montreal continues to focus on its retail banking business and shrink its corporate-lending and stock market-related activities. This should give it more stable revenue streams. The bank also aims to spur growth at its insurance operations, which currently supply just 2% of its revenue. It recently agreed to pay $375 million for the Canadian life insurance business of troubled U.S. insurer American International Group Inc. Bank of Montreal earned $2 billion, or $3.76 a share, in fiscal 2008, down 7.2% from $2.1 billion, or $4.11 a share, in the prior year. The latest results included $419 million of after-tax writedowns of securities, as well as a $977-million increase in loan-loss provisions. The prior year included $787 million in unusual charges. Revenue rose 9.2%, to $10.2 billion from $9.3 billion. Bad loans now stand at 0.4% of Bank of Montreal’s total loans....

BANK OF NOVA SCOTIA $30 (Toronto symbol BNS; Conservative Growth Portfolio, Finance sector; Shares outstanding: 990 million; Market cap: $29.7 billion; Price-to-sales ratio: 1.1; SI Rating: Above Average) is Canada’s third-largest bank, with assets of $507.6 billion. Bank of Nova Scotia has the largest international operations of the big five banks, with a third of its earnings coming from overseas. It prefers to focus on developing countries in Latin America and Asia, where it can quickly expand earnings and market share. Bank of Nova Scotia recently agreed to increase its stake in Thailand’s Thanachart Bank from 24.98% to 49%. Thanachart is Thailand’s eighth largest bank by assets, and that country’s leading automobile lender....

TORONTO-DOMINION BANK $39 (Toronto symbol TD; Conservative Growth Portfolio, Finance sector; Shares outstanding: 810.1 million; Market cap: $31.6 billion; Price-to-sales ratio: 1.2; SI Rating: Above Average) is the second-largest Canadian bank, with assets of $563.2 billion. Like Royal, TD has built up its U.S. operations over the past few years. It has focused more on retail banking, however, which is more stable than brokerage services or wealth management. Retail banking in Canada and the U.S. now accounts for roughly 80% of TD’s earnings. TD is not immune to the current financial crisis. In fiscal 2008, earnings at TD’s wholesale banking division fell 92%, due to $350 million in trading losses and writedowns of illiquid securities....

ROYAL BANK OF CANADA $30 (Toronto symbol RY; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.3 billion; Market cap: $39 billion; Price-to-sales ratio: 1.4; SI Rating: Above Average) is Canada’s largest bank, with total assets of $723.9 billion. Royal continues to expand its operations in the United States. These now account for 17% of its revenue, and have increased Royal’s exposure to the struggling U.S. housing market. In the fiscal year ended October 31, 2008, earnings declined 17.1%, to $4.6 billion from $5.5 billion in the prior year. Earnings per share fell 19.3%, to $3.38 from $4.19 on more shares outstanding. The drop was largely due to a 101.6% increase in loan-loss provisions. Troubled loans now account for 0.96% of total loans, up from 0.45% a year earlier....

H&R REAL ESTATE INVESTMENT TRUST $8 (Toronto symbol HR.UN; Units outstanding: 147.4 million; Market cap: $1.2 billion; SI Rating: Extra Risk) holds interests in 34 office properties, 124 industrial properties and 122 retail properties comprising over 41 million square feet. Over half of H&R’s properties are in the Greater Toronto Area. The rest are elsewhere in Ontario, Quebec, western Canada and the U.S. H&R now has an industry leading portfolio occupancy rate of 99.5%. Revenue in the three months ended September 30, 2008, was $153.2 million, up 6.1% from $144.7 million a year earlier. Cash flow per unit fell 2.6%, to $0.38 from $0.39, due to reorganization costs and more units outstanding. H&R’s units yield 9.0%. H&R REIT is a buy.

CANADIAN REIT $20.90 (Toronto symbol REF.UN; Units outstanding: 61.1 million; Market cap: $1.3 billion; SI Rating: Extra Risk) owns a portfolio of more than 160 income properties, consisting of retail, industrial and office properties across Canada and in the Chicago, Illinois, area. Occupancy is at 96.5%. Revenue in the three months ended September 30, 2008, was $79.6 million, up 10.0% from $72.3 million a year earlier. Cash flow per unit rose 7.4%, to $0.58 from $0.54. The units yield 6.5%. CREIT buys properties in prime locations, usually near major cities, that attract strong tenants, maintain high occupancy rates and deliver a reliable stream of rental income....

RIOCAN REAL ESTATE INVESTMENT TRUST $14.30 (Toronto symbol REI.UN; Units outstanding: 221.2 million; Market cap: $3.2 billion; SI Rating: Average) is Canada’s largest REIT. RioCan has ownership interests in a portfolio of 238 retail malls across Canada, including 14 under development. These contain over 58 million square feet of leasable area. Portfolio occupancy stands at 97.0%. RioCan’s revenue in the three months ended September 30, 2008, was $185.5 million, up 7.6% from $172.5 million a year earlier. Cash flow per unit rose 2.8%, to $0.37 from $0.36. RioCan’s annual distribution of $1.38 gives the units a yield of 9.7%. RioCan recently agreed to buy six shopping centres in Montreal for $67.5 million. The properties are over 99% occupied, and have an average lease term of 14.5 years....

MANULIFE FINANCIAL $20.15 (Toronto symbol MFC; Shares outstanding: 1.5 billion; Market cap: $30.1 billion; SI Rating: Above-Average) sells life and other forms of insurance, as well as mutual funds and investment-management services. Manulife operates in 19 countries and territories worldwide, and adminsters $385.3 billion in assets. In the three months ended September 30, 2008, Manulife’s earnings fell 52.7%, to $503 million, or $0.34 a share, from $1.1 billion, or $0.70 a share a year earlier. Sharp global stock-market declines reduced earnings in the latest quarter by $574 million. As well, losses due to exposure to defaulting issuers in turbulent credit markets totalled $253 million. This included losses on investments with Lehman Brothers ($156 million), AIG ($32 million) and Washington Mutual ($4 million)....

TRIMARK CANADIAN RESOURCES FUND $11.19 (CWA Rating: Aggressive) (Invesco Trimark, 5140 Yonge Street, Suite 900, Toronto, Ontario M2N 6X7. Tel: 1-800-631-7008; Web site: www.invescotrimark.com. Buy or sell through brokers.) includes firms we’d rate as Speculative in its top picks. However, we like Trimark Canadian Resources Fund’s value-seeking, conservative approach to picking stocks in the volatile resource sector. The $356.5-million fund’s top holdings are En- Cana Corporation, IAMGold Corp., West Fraser Timber Co. Ltd., Husky Energy, Nexen, Halma plc, Mayr-Meinhof Karton AG, Goldcorp Inc., Umicore S.A. and Central Fund of Canada. Trimark Canadian Resources Fund is broken down by sector as follows: Energy, 42.8%; Metals & Minerals, 31.5%; and Industrials, 10.2%....

TD RESOURCE FUND $17.79 (CWA Rating: Aggressive) (TD Asset Management, P.O. Box 7500, Station A, Toronto, Ontario, M5W 1P9. Tel: 1-800-386-3757; Web site:www.tdcanadatrust.ca. No load: deal directly with the bank.) invests in companies with superior asset bases, proven management and the ability to internally finance growth. The $129.1-million TD Resource Fund’s top stock holdings are mostly of “Average” quality or higher. The fund’s holdings include EnCana Corporation, Suncor Energy, Talisman Energy Inc., Goldcorp, Yamana Gold, Petro-Canada, Red Back Mining, BHP Billiton, Husky Energy, Chevron Corporation, Marathon Oil Corporation and Nexen. TD Resource Fund’s industry breakdown is: Energy, 59.3%; and Metals & Minerals, 38.5%. Its MER is 2.15%....