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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%....

TUPPERWARE BRANDS CORP. $23 (New York symbol TUP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 62 million; Market cap: $1.4 billion; Price to- sales ratio: 0.7; WSSF Rating: Above Average) makes plastic food and beverage containers, as well as beauty products. It sells its products through a network of independent dealers instead of traditional retail stores. This keeps its marketing costs low. Tupperware tends to do well when the economy slows. That’s because many people become Tupperware dealers as a way of supplementing their income. Demand for food storage containers also tends to rise during downturns, as more people eat at home instead of in restaurants. Tupperware gets more than 90% of its profits from outside of the United States. This makes it particularly vulnerable to a rising U.S. dollar, which hurts the contribution of its international operations. Still, Tupperware’s well-known brand continues to spur sales in emerging markets, such as China and India....

NEWELL RUBBERMAID INC. $9.21 (New York symbol NWL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 277.2 million; Market cap: $2.6 billion; Price-to-sales ratio: 0.3; WSSF Rating: Average) makes a wide variety of household products, such as plastic storage bins, tools and pens. International markets account for 30% of its revenue. The company’s total term debt was $2.9 billion as of December 31, 2008, which is a high 110% of its market cap. Of that total, $752.7 million is due within one year. Newell generated $546.6 million in cash flow in 2008, so it should have little trouble meeting its obligations. The company also held cash of $275.4 million, or $1.00 a share. Newell aims to conserve cash by accelerating its current restructuring plan, which includes temporarily shutting down some of its plants to reduce inventory levels. Excluding unusual items, Newell will probably earn $1.19 a share in 2009. The stock trades at 7.7 times that estimate. To conserve cash, the company recently cut its dividend by 50%, from $0.84 a share to $0.42. It now yields 4.6%....

FAIR ISAAC CORP. $16 (New York symbol FIC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 48.5 million; Market cap: $776 million; Price-to-sales ratio: 1.0; WSSF Rating: Average) provides products and services that help businesses around the world make better decisions on customer creditworthiness. Its main business is its FICO software, which lets creditors use information about a customer to calculate a credit score. In the fiscal year ended September 30, 2008, Fair Isaac’s revenue fell 5.0%, to $744.8 million from $784.2 million. Sales growth has slowed along with increasing problems in credit markets. Earnings per share fell by 15.5%, to $1.64 from $1.94. Fair Isaac now aims to expand the use of its FICO score in the face of growing competition; new deals with banks and credit unions will allow them to give free FICO scores to their customers. Helping borrowers improve their credit scores should also lead to fewer loan losses for Fair Isaac’s clients....

BROADRIDGE FINANCIAL SOLUTIONS INC. $14 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 141.4 million; Market cap: $2.0 billion; Price-to-sales ratio: 1.0; WSSF Rating: Extra Risk) offers services to the investment industry in three main areas: investor communications, securities processing, and transaction clearing. Broadridge mails and processes 70% of all proxy votes. Broadridge’s revenue in its first fiscal quarter, ended September 30, 2008, rose 4.7%, to $472.4 million from $451.2 million a year earlier. It typically sells its services under long-term contracts that provide it with steady revenue streams. This cuts its risk. However, earnings fell 1.1%, to $35.6 million from $36.0 million. The drop was mainly due to the timing of extra expenses stemming from investments in technology and new products. Earnings per share fell 3.8%, to $0.25 from $0.26 on more shares outstanding. The company will probably earn $1.48 a share in fiscal 2009, and the stock trades at 9.5 times that estimate. The $0.28 dividend yields 2.0%....

LIZ CLAIBORNE INC. $2.84 (New York symbol LIZ; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 94.7 million; Market cap: $268.9 million; Price-to-sales ratio: 0.1; WSSF Rating: Extra Risk) designs and sells clothing and accessories for men and women under about 20 different brands, including Juicy Couture, Kate Spade, Lucky Brand and Mexx. It mainly sells its products through department stores, and its own 600-store chain. The company expects that it lost up to $0.15 a share in the fourth quarter of 2008, because of heavy discounting by department stores. It had earlier forecast earnings of between $0.19 and $0.24 a share. Falling prices at department stores also forced Liz Claiborne to cut prices at its own stores to stay competitive. Liz Claiborne continues to make progress with its restructuring, including selling or discontinuing lessprofitable brands. It has also hired prominent fashion designer Isaac Mizrahi to overhaul its main “Liz Claiborne” line of women’s sportswear and accessories....

JONES APPAREL GROUP INC. $4.17 (New York symbol JNY; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 83.4 million; Market cap: $347.8 million; Price-to-sales ratio: 0.1; WSSF Rating: Average) designs clothing, accessories and footwear for men and women. Major brands include Jones New York, Gloria Vanderbilt and Nine West. Department stores account for the bulk of Jones’s sales. The company also operates around 1,000 of its own retail stores and outlets. Jones continues to cut costs and lower inventories to deal with the slumping economy. It feels these moves will save it $33 million a year. The company also plans to conserve cash by cutting capital spending by 35.7%, to $45 million in 2009 from $70 million in 2008. As well, it has cut its quarterly dividend by 64.3%, to $0.05 a share from $0.14. The new annual rate of $0.20 yields 4.8%. The lower dividend should save it $30 million a year....

LIMITED BRANDS INC. $9.15 (New York symbol LTD; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 322.1 million; Market cap: $2.9 billion; Price-to-sales ratio: 0.4; WSSF Rating: Average) operates two main retail chains: Victoria’s Secret (lingerie) and Bath & Body Works (soaps and bath oils). It also operates the La Senza (lingerie) chain in Canada and 30 other countries. In December 2008, Limited Brands’ overall same-store sales fell 10%. The slowing economy forced the company to lower prices to lure customers and clear out older inventory. Same-store sales fell by 9% at Victoria’s Secret, 10% at La Senza and 11% at Bath & Body Works. Its successful restructuring over the past two years will continue to help Limited Brands cope with the slowdown. As part of this plan, it sold 75% of its Express and Limited casual clothing chains, which generate lower profits than its other operations. Workforce reductions, lower inventory levels and other measures have also saved it $150 million a year....

NEWMONT MINING CORP. $39 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 454.3 million; Market cap: $17.7 billion; Price to- sales ratio: 3.4; WSSF Rating: Average) is one of the world’s largest gold mining companies, with major operating gold mines in the United States, Canada, Australia, Peru, Bolivia and Ghana. Gold accounts for about 85% of Newmont’s revenue. The remaining 15% comes from copper, zinc and other metals. Most of Newmont’s copper comes from its 45% stake in the large Batu Hijau mining complex in Indonesia. Newmont reached its current size mainly through its 2002 acquisitions of Canada’s Franco-Nevada Mining Corp. and Australia’s Normandy Mining Ltd. As part of these acquisitions, Newmont inherited their hedging contracts, which let them lock in future delivery prices. However, Newmont prefers to sell its gold at the floating price. The company maximizes profit by adjusting production based on the prevailing price....

TRUE ENERGY TRUST $1.25 (Toronto symbol TUI.UN; SI Rating: Speculative) (403-264-8875; www.trueenergy.ab.ca; Units outstanding: 78.5 million; Market cap: $98.1 million) produces oil and gas, mostly in Alberta and Saskatchewan. About 65% of output is gas. In the three months ended September 30, 2008, production fell 6.4%, to 11,263 barrels of oil equivalent per day, from 14,096 barrels. The decline came because True lowered capital spending to conserve cash. To further conserve cash, and to pay down debt, True cut its monthly distribution by 50% with the January 2009 payment, to $0.02 from $0.04. Debt of $197.3 million represents a high 101% of market cap....

TRILOGY ENERGY TRUST $5.41 (Toronto symbol TET.UN; SI Rating: Speculative) (403-290-2900; www.trilogyenergy.com; Units outstanding: 95.4 million; Market cap: $516.3 million) holds oil and gas properties in the Kaybob and Grande Prairie areas of central Alberta. Trilogy’s production is weighted approximately 80% toward natural gas and 20% to oil. In the three months ended September 30, 2008, Trilogy’s production rose 3.1%, to 20,394 barrels of oil equivalent per day, from 19,775 barrels per day a year earlier. Trilogy’s $325-million debt is somewhat high at 64% of market cap. To conserve cash for debt repayment, the trust has cut its monthly distribution starting in February 2009 by 50%, to $0.05 from $0.10. The new distribution gives the units a current yield of 11.1%. The lower distribution will also reduce the trust’s payout to unitholders to just 40% of cash flow....

ZARGON ENERGY TRUST $14.87 (Toronto symbol ZAR.UN; SI Rating: Speculative) (403-264-9992; www.zargon.ca; Units outstanding: 18.4 million; Market cap: $274.1 million) has oil and gas production assets in Alberta, Manitoba, Saskatchewan and North Dakota. Output is weighted 53% toward natural gas and 47% to oil. In the three months ended September 30, 2008, Zargon’s production rose 9.9%, to 9,340 barrels of oil equivalent per day, from 8,501 barrels. Zargon’s $75-million debt is low, at around 27% of market cap. The trust’s monthly distribution of $0.18 gives the units a yield of 14.5%. Zargon flows just 47% of its cash flow through to its unitholders, so a distribution cut is unlikely, even if oil and gas prices remain low....

TRANSCONTINENTAL INC. $8.50 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 80.8 million; Market cap: $686.8 million; Price-to-sales ratio: 0.3; SI Rating: Average) now trades at just 5.1 times its forward earnings estimate of $1.66 a share. That’s mainly because advertisers are shifting away from traditional direct mail services to the Internet. Direct marketing accounts for 50% of Transcontinental’s revenue, and 40% of its profit. Transcontinental is also a major commercial printer (25% of revenue, 30% of profit). Many of its major customers, such as newspaper publishers, are now stagnating as the slowing economy hurts their circulation sales and advertising revenues. The slowdown is also putting pressure on Transcontinental’s own publishing operations, which consists of 42 magazines and 172 newspapers, primarily in eastern Canada (25% of revenue, 30% of profit)....

METRO INC. $37 (Toronto symbol MRU.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 110.6 million; Market cap: $4.9 billion; Price-to-sales ratio: 0.4; SI Rating: Average) operates 558 food stores and 268 drugstores in Ontario and Quebec. The company earned $281.3 million in the fiscal year ended September 27, 2008, down 4.6% from $295.0 million in the prior year. Earnings per share fell 2.0%, to $2.48 from $2.53 a year earlier, on fewer shares outstanding. These figures exclude unusual items. Sales rose 0.8%, to $10.7 billion from $10.6 billion. Long-term debt of $1.0 billion is 20% of Metro’s market cap. Metro holds cash of $151.7 million or $1.37 a share. The $0.50 dividend yields 1.4%. Metro’s class ‘A’ subordinate voting shares have jumped by 40% in the past three months. However, they still trade at a reasonable 13.9 times the $2.67 a share that Metro should earn in fiscal 2009....

LOBLAW COMPANIES LTD. $37 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 274.2 million; Market cap: $10.1 billion; Price-to-sales ratio: 0.3; SI Rating: Above average) is Canada’s largest grocery store operator, with over 1,000 stores. The company’s plan to re-model older stores, improve its distribution systems and rejuvenate its private label products is starting to pay off. In the three months ended October 4, 2008, earnings per share rose 8.9%, to $0.61 from $0.56 a year earlier. These figures exclude unusual items. Sales grew 3.9%, to $9.5 billion from $9.1 billion. Same-store sales rose 3.0%. Long-term of $4.0 billion is equal to 40% of its market cap. Loblaw holds $690 million or $2.52 a share in cash. The stock has gained 30% in the past two months, largely due to speculation that parent company George Weston Ltd. plans to buy the 39% of the company that it does not already own....

SAPUTO INC. $20 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 206.8 million; Market cap: $4.1 billion; Price-to-sales ratio: 0.8; SI Rating: Average) is Canada’s largest producer of dairy products including milk, butter and cheese. Its main dairy brands include Saputo, Stella and Dairyland. Saputo also makes snack cakes and tarts. Saputo reached its current size mainly through acquisitions outside of Canada. Recent purchases include the west coast industrial cheese business of U.S.-based Land O’ Lakes Inc. for $249.2 million, and a Wisconsin-based cheese maker for $161.0 million. Saputo has also used acquisitions to expand to Argentina and Europe. Its international operations now supply about 40% of its revenue, and 30% of its earnings. Expanding through acquisitions is riskier than internal growth. Saputo cuts this risk by identifying smaller, less efficient businesses that would benefit from its economies of scale and marketing expertise....

MAPLE LEAF FOODS INC. $10 (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 126.3 million; Market cap: $1.3 billion; Price-to-sales ratio: 0.2; SI Rating: Average) continues to make progress with its multi-year restructuring plan. This mainly includes a shift to packaged meats under the Maple Leaf and Schneider brands, which generate higher earnings for it than fresh meats. The plan should increase Maple Leaf’s annual operating earnings (profits after regular operating costs) by $100 million by 2010. The company has now agreed to settle several class action lawsuits stemming from the listeria outbreak at its Toronto meat-processing plant. The settlement will cost it $25 million to $27 million. To put these lawsuits in perspective, Maple Leaf lost $0.10 a share (total $12.9 million) in the three months ended September 30, 2008. It earned $0.01 a share ($1.7 million) in the year-earlier quarter. If you exclude the costs to recall contaminated products and other unusual items, per-share earnings rose 116.7%, to $0.13 a share ($16.4 million) from $0.06 a share ($7.7 million). Revenue grew 3.3%, to $1.34 billion from $1.30 billion....

GENNUM CORP. $5.69 (Toronto symbol GND, Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 35.6 million; Market cap: $202.6 million; Price-to-sales ratio: 1.6; SI Rating: Above average) has dropped 55.5% from $12.40 in January, 2008....