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TEXAS INSTRUMENTS INC. $25 (New York symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.3 billion; Market cap: $32.5 billion; WSSF Rating: Average) makes chips for a wide variety of electronic devices, including mobile phones, DVD players and digital cameras. Chips accounted for 96% of the company’s revenue in 2007. The remaining 4% came from handheld calculators and other products. The company has more than 50,000 customers, but mobile phone maker Nokia Corp. accounted for 15% of its 2007 revenue. Nokia now plans to cut its reliance on Texas Instruments for most its chips. However, newer phones use chips that compress processing power into a single chip, instead of spreading these functions across several chips. Texas Instruments is a leading maker of these enhanced chips, so Nokia will likely remain a significant customer....

INTEL CORP. $22 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.7 billion; Market cap: $125.4 billion; WSSF Rating: Above average) is the world’s largest maker of computer chips, with roughly 80% of the global market. Intel currently spends about 16% of its revenue of $6.75 a share on research. This spending has led to several highly profitable products in the past few years. A good example is its multi-core processor chips, which let computers perform several tasks simultaneously. The company has also had great success with its Centrino platform for mobile computers. Centrino combines a processor, memory chips and high-speed wireless technology. It also consumes less power than other mobile platforms....

BANK OF AMERICA CORP. $33 (New York symbol BAC; Conservative Growth Portfolio, Finance sector; Shares outstanding: 4.5 billion; Market cap: $148.5 billion; WSSF Rating: Above average), has reported better-than-forecast profits for the second quarter despite rising losses from its mortgage operations. Earnings in the quarter fell 43.8%, to $0.72 a share from $1.28 a year earlier. These figures do not include mortgage lender Countrywide Financial Corp., which Bank of America acquired on July 1, 2008. We feel the purchase will expand Bank of America’s long-term earnings. However, it will probably take it several months to restructure Countrywide. Bank of America is a hold.

THE WESTERN UNION CO. $28 (New York symbol WU; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 740.0 million; Market cap: $20.7 billion; WSSF Rating: Above average) provides money transfer and foreign exchange services. It operates in more than 200 countries through a network of 335,000 agents, such as post offices, banks and retailers. Over 80% of Western Union’s agents are located outside of the United States. The company began operations in 1851, and was one of the original 11 companies included in the Dow Jones average. In recent years, Western Union was a wholly owned subsidiary of First Data Corp. On September 29, 2006, First Data spun off Western Union to its own stockholders as a special dividend. Western Union’s main business is consumer-to-consumer transfers of money, which accounts for roughly 85% of its total revenue. The company charges the sender a fee based on the size of the transfer and the destination. Western Union also makes money on the conversion of funds from one foreign currency to another. In 2007, it processed 167.7 million transactions, up 14% from 2006....

OILEXCO INC. $16.27 (Toronto symbol OIL; SI Rating: Speculative) (403-262-5441; www.oilexco.com; Shares outstanding: 221.5 million; Market cap: $3.6 billion) reported cash flow of $0.64 a share on revenues of $172.4 million in the three months ended March 31, 2008. (All figures except share price and market cap in U.S. dollars). The company’s shares now trade at 6.4 times annualized cash flow based on the latest quarter. Year-earlier figures are not relevant as production only started up in June, 2007 at the company’s 100%- owned Brenda and 70%-owned Nicol oil finds in the UK North Sea. Production averaged 20,714 barrels of oil per day in the latest quarter. Oilexco estimates that production from the three wells in Brenda and one well in Nicol will average 30,000 barrels of oil a day by next year. Combined with expected output from its 100%-owned Shelley field and its 40% Huntington interest, 2009 production could average over 54,000 barrels per day. That should give the company annual cash flow of around $6.30 a share. The stock now trades at just 2.6 times that estimate....

DEVON ENERGY CORP. $101.38 (New York symbol DVN; SI Rating: Speculative) (405-235-3611; www.devonenergy.com; Shares outstanding: 446.2 million; Market cap: $45.2 billion) is one of the largest U.S.-based independent oil and gas explorers and producers. Devon’s properties are located mainly in the United States and Canada. The company has sold its operations in Egypt, and recently completed the sale of most of its assets in West Africa for $2.4 billion. In the three months ended March 31, 2008, Devon’s revenues rose 20.3%, to $3 billion from $2.5 billion. Cash flow rose 79.6%, to $2.4 billion, or $5.48 a share, from $1.4 billion or $3.06 a share. Devon’s shares trade at 4.6 times annualized cash flow based on the latest quarter. Long-term debt of $6.4 billion is equal to 11% of market cap. Devon also holds cash of $1.9 billion or $4.25 a share....

CHESAPEAKE ENERGY $56.67 (New York symbol CHK; SI Rating: Extra risk) (405-848-8000; www.chkenergy.com; Shares outstanding: 573.7 million; Market cap: $32.5 billion) is a major U.S. producer of natural gas and an active driller of oil and gas wells. The company’s primary operating area is the Mid- Continent region of the U.S., which includes Oklahoma, Arkansas, Kansas and the Texas Panhandle. It’s also active in South Texas, the Permian Basin area of West Texas, the Arkansas/Louisiana/Texas border region and the Appalachian Basin. Approximately 92% of Chesapeake’s production is natural gas. Production averaged 2.2 billion cubic feet equivalent per day in the latest quarter, up 31.4% from 1.7 billion a year earlier....

CANADIAN TIRE CORP. $53 (Toronto symbol CTC.A; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 81.5 million; Market cap: $4.3 billion; SI Rating: Above average) aims to open its new 1.5 million square foot distribution centre near Montreal in early 2009. This new facility will supply 300 Canadian Tire stores throughout Ontario, Quebec and Atlantic Canada. The $240 million cost of this facility is equal to 59% of the $410.1 million or $5.03 a share that Canadian Tire earned in 2007 before unusual items. But it should lower Canadian Tire’s costs, and help it compete with larger retailers such as Wal-Mart....

TRANSCANADA CORP. $37 (Toronto symbol TRP; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 541.0 million; Market cap: $20.0 billion; SI Rating: Above average) owns 31.6% of Bruce Power LP, the partnership that operates the nuclear power facility on the Bruce Peninsula in Ontario....

BOMBARDIER INC. (Toronto symbols BBD.A $7.52 and BBD.B $7.50; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $12.8 billion; SI Rating: Extra risk) will probably win a contract to build over 200 streetcars for Toronto’s transit system now that rival Siemens AG has withdrawn its bid....

SNC-LAVALIN GROUP INC. $54 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 151.0 million; Market cap: $8.2 billion; SI Rating: Average) continues to win new infrastructure contracts. It recently received a $300 million contract to build two natural gas compression plants in France. The company will also participate in the construction of a $200 million U.S. hydrogen plant at an oil refinery in California. These are small jobs next to SNC’s annual revenue of about $7 billion, but add to its current backlog of $10.0 billion. SNC now trades at 29.0 times its projected 2008 earnings of $1.86 a share. That’s expensive considering much of its income comes from engineering projects with uneven revenue streams....

PRECISION DRILLING TRUST $25 (Toronto symbol PD.UN; Aggressive Growth Portfolio, Resources sector; Units outstanding: 125.8 million;Market cap: $3.1 billion; SI Rating: Extra risk) is Canada’s largest contract driller. It pays monthly distributions of $0.13 a unit, for a yield of 6.2%. Precision recently offered to buy American Exchange-listed Grey Wolf Inc., which operates drilling rigs in the U.S. Gulf Coast region. Expanding outside of Canada gives Precision steadier revenue streams, as many of its Canadian customers suspend drilling during the winter. Grey Wolf has rejected the offer, and instead plans to merge with rival Basic Energy Services, Inc. However, if Grey Wolf’s shareholders reject the merger with Basic, Precision may take its offer...

FORDING CANADIAN COAL TRUST $76 (Toronto symbol FDG.UN; Aggressive Growth Portfolio, Resources sector; Units outstanding:148.7 million; Market cap: $11.3 billion; SI Rating: Average) is a major producer of metallurgical coal, a key ingredient in steelmaking. Coal prices have shot up in the past year, due to strong demand from steelmakers in Asia and flooding at coal mines in Australia. That helped push up Fording’s units to a new high of $98 in June 2008....

PENGROWTH ENERGY TRUST $18 (Toronto symbol PGF.UN; Aggressive Growth Portfolio, Resources sector; Units outstanding: 247.9 million;Market cap: $4.5 billion; SI Rating: Average) owns oil and natural gas properties in Alberta and B.C. Pengrowth prefers to focus on mature, proven properties that provide it with steady cash flows. At current production rates, Pengrowth’s reserves should last 10 years. The trust tends to replenish its reserves with acquisitions instead of exploration. However, it typically pays with new units, which...

One of our recommended Canadian income trusts is BELL ALIANT REGIONAL COMMUNICATIONS INCOME FUND $28 (Toronto symbol BA.UN; Conservative Growth Portfolio, Utilities sector; Units outstanding: 127 million; Market cap: $3.7 billion; SI Rating: Above average). Bell Aliant is the main provider of telephone services in Atlantic Canada. It also serves rural areas of Ontario and Quebec. BCE Inc. controls about 45% of Bell Aliant. As part of the deal that created the fund in July 2006, Bell Aliant transferred most of its wireless operations to BCE. Without these operations, Bell Aliant has focused on its other growth areas, such as high-speed Internet access. In the first quarter of 2008, a 14.6% rise in high-speed Internet subscribers helped expand Bell Aliant’s overall Internet revenue by 9.8% from a year earlier. Part of that increase was from the recent purchase of the publicly owned telephone system in Kenora, Ontario. Internet services now account for 11% of Bell Aliant’s total revenue....

MANITOBA TELECOM SERVICES INC. $41 (Toronto symbol MBT; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 64.6 million; Market cap: $2.6 billion; SI Rating: Average) is Manitoba’s main provider of regular and wireless phone services, with over 90% of the market. The company also owns Allstream, which provides communication services to businesses across Canada. Allstream accounts for 60% of Manitoba Tel’s revenue, but just 40% of its profit. The company recently dissolved a partnership it formed with the Canada Pension Plan Investment...

TELUS CORP. (Toronto symbols T $42 and T.A $40; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 321.4 million; Market cap: $13.2 billion; SI Rating: Above average) provides telephone service in Alberta, British Columbia and parts of Quebec. It also operates a nationwide wireless network. The wireless division now supplies close to half of Telus’s revenue. Ottawa now aims to increase competition in the wireless industry. In its current auction of wireless frequencies (called ‘spectrum’ in the industry), the federal government has set aside 40% for new companies....

MOLSON COORS CANADA INC. (Toronto symbols TPX.A $56 and TPX.B $54; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 181.5 million; Market cap: $10.0 billion; SI Rating: Average) is the world’s fifth-largest brewer by volume....

HART STORES INC. $2.21 (Toronto symbol HIS; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 13.6 million; Market cap: $30.1 million; SI Rating: Speculative) operates 80 midsized department stores in Eastern Canada. It plans to expand to 100 stores in the next few years. Hart prefers to focus on smaller cities that larger retailers tend to avoid. It also emphasizes convenience and customer service. That helps Hart attract shoppers away from big-box style competitors. Many of the goods Hart sells come from overseas suppliers. While the rising Canadian dollar makes imported goods cheaper, Hart had to cut its selling prices to stay competitive. Consequently, sales in the fiscal year ended February 2, 2008 fell 2.9%, to $161.6 million from $166.4 million in the prior fiscal year. Same-store sales fell 4.2%. Earnings per share fell 16.7%, to $0.25 a share from $0.30. The stock now trades at 7.4 times Hart’s forecast earnings of $0.30 a share. The $0.10 dividend still appears safe, and yields 4.5%....

JAPAN EQUITY FUND $4.51 (New York symbol JEQ; CWA Rating: Aggressive) invests mostly in large capitalization stocks on the Tokyo Stock Exchange. The fund’s top holdings include: Toyota Motor, Mitsubishi UFJ Financial Group, East Japan Railway Co., Shin-Etsu Chemical Co....

TRIMARK CANADIAN RESOURCES FUND $18.69 (CWA Rating: Aggressive) (AIM Funds Management Inc., 5140 Yonge Street, Suite 900, Toronto, Ontario M2N 6X7. 1-800-631-7008; Website: www.aimfunds.ca. 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 $626.7 million fund’s top holdings are Talisman Energy, EnCana Corporation, Labrador Iron Ore Royalty Income Fund, West Fraser Timber Co. Ltd., Enerflex Systems, Plum Creek Timber Co. REIT, Mayr-Meinhof Karton AG, Savanna Energy Services, Umicore S.A. and Range Resources Corp. Trimark Canadian Resources Fund is broken down by sector as follows: Energy, 34.3%; materials, 37.6%; and Consumer discretionary, 2.7%....

TD RESOURCE FUND $37.66 (CWA Rating: Aggressive) (TD Asset Management, P.O. Box 7500, Station A, Toronto, Ontario. M5W 1P9. 1-800-386-3757; Web ite: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 $279.9 million TD Resource Fund’s top stock holdings are mostly of ‘Average’ quality or higher. The fund’s holdings include Suncor Energy, EnCana Corporation, Talisman Energy Inc., Goldcorp, Yamana Gold, Petro-Canada, Nexen, Alcoa, BHP Billiton, Husky Energy, Chevron Corporation, Marathon Oil Corporation and Weatherford International. TD Resource Fund’s industry breakdown is: Energy, 58.5%; and Basic materials, 39.2%. Its MER is 2.17%....

ISHARES MCSI CANADA INDEX FUND $33 (American Exchange symbol EWC; buy or sell through brokers) is almost a market-cap based index fund, but it tinkers with the index fund formula to try and improve performance by using its proprietary Morgan Stanley Capital International Canada Index. The U.S.-based fund also has to work around foreign ownership restrictions. iShares MCSI Canada Index Fund is managed by Barclays Global Investors and has an MER of 0.54%. We think if you want to own a Canadian index fund then you should buy the iShares CDN LargeCap 60 units. You’ll pay about a third of the management fees....

NASDAQ-100 TRUST SHARES $45 (Nasdaq Exchange symbol QQQQ; buy or sell through brokers) or ‘Qubes’, hold the stocks that represent the Nasdaq 100 Index. This index is made up of the 100 largest and most heavily traded stocks on the Nasdaq exchange. The index reflects firms across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain financial companies. Expenses are about 0.20% of assets. The top 10 highest-weighted stocks are Apple, Microsoft, Qualcomm, Google, Cisco, Intel, Research in Motion, Gilead Sciences, Oracle and Celgene. Nasdaq-100 Trust Shares are a buy for aggressive investors only.

DIAMONDS TRUST SHARES $112 (American Exchange symbol DIA; buy or sell through brokers) hold the 30 stocks that make up the Dow Jones Industrial Average. Currently, the fund’s top 10 holdings are IBM, 3M, Boeing Co., United Technologies, Caterpillar, McDonald’s Corp., Chevron Corp., Johnson & Johnson, Procter & Gamble and Exxon Mobil. Expenses are about 0.18% of assets. Diamonds Trust Shares are a buy.