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CANADIAN REIT $29.30 (Toronto symbol REF.UN; SI Rating: Extra Risk) owns a portfolio of more than 150 income properties consisting of retail, industrial and office properties across Canada and in the Chicago, Illinois area. Occupacy is at 96.7%. CREIT’s revenue in the three months ended June 30, 2008 was $73.1 million, up 10.2% from $66.4 million a year earlier. Cash flow per unit rose 5.7%, to $0.56 from $0.53. The units yield 4.6%. CREIT focuses on acquiring properties in prime locations, usually near major metropolitan centres, that attract strong tenants, maintain high occupancy rates and deliver a reliable stream of rental income....

RIOCAN REAL ESTATE INVESTMENT TRUST $21.51 (Toronto symbol REI.UN; SI Rating: Average) is Canada’s largest REIT. RioCan has ownership interests in a portfolio of 227 retail properties across Canada, including 15 under development. These properties contain over 59 million square feet of leasable area. Portfolio occupancy stands at 97.0%. RioCan’s revenue in the three months ended June 30, 2008 was $169.9 million, up 7.1% from $158.3 million a year earlier. Cash flow per unit rose 5.3%, to $0.40 from $0.38. RioCan’s annual distribution of $1.35 gives the units a yield of 6.2%. RioCan is still a buy.

IBM $118.34 (New York symbol IBM; SI Rating: Above average) is the world’s biggest supplier of computers and information processing services. The company’s shift over the past few years into higher margin computer services and software is paying off. Revenues rose 12.8% in the three months ended June 30, 2008, to $26.8 billion from $23.8 billion a year earlier. Earnings rose 22.3%, to $2.8 billion from $2.3 billion. Earnings per share rose 28.7%, to $2.02 from $1.57, on fewer shares outstanding from share buybacks. IBM has increased its stock repurchase authorization by $15 billion. The company aims to buy back $12 billion worth of its stock in 2008, or about 8% of its market cap....

FORDING CANADIAN COAL TRUST $92.55 (Toronto symbol FDG.UN; SI Rating: Average) — recently accepted a cash-and- stock offer from Teck Cominco worth about $96 a unit. The deal should close in October, 2008. Note though that unlike most takeovers, Revenue Canada will treat the entire proceeds as ordinary income....

H&R REAL ESTATE INVESTMENT TRUST $17.88 (Toronto symbol HR.UN; SI Rating: Extra Risk) holds interests in 34 office properties, 124 industrial properties and 129 retail properties comprising over 43 million square feet. Over half of H&R’s properties are in the Greater Toronto Area. The rest are elsewhere in Ontario, in Quebec, western Canada and the United States. The company has an industry-leading portfolio occupancy rate of 99.2%. Revenue in the three months ended June 30, 2008, was $151.3 million, up 6.1% from $142.5 million a year earlier. Cash flow per unit was unchanged at $0.40. H&R’s annual distribution of $1.44 gives the units a yield of 8.1%. H&R REIT is a buy....

CINTAS CORP. $31 (Nasdaq symbol CTAS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 153.7 million; Market cap: $4.8 billion; WSSF Rating: Average) sells and rents uniforms to over 800,000 businesses in the United States and Canada. Uniforms and other business supplies such as entrance mats, mops and hygiene products account for 85% of Cintas’s revenue. The remaining 15% comes from a variety of other business services. These include first aid kits, fire extinguishers and smoke alarms, and document storage and shredding services. Cintas’s stock fell to around $25 in July 2008 due to fears that the recent downturn will prompt businesses to curtail spending on uniforms and other supplies. Rising fuel prices have also increased Cintas’s delivery costs....

FAIR ISAAC CORP. $23 (New York symbol FIC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 48.5 million; Market cap: $1.1 billion; WSSF Rating: Average) makes software that helps banks and businesses calculate the likelihood that a borrower will pay back a loan. Despite new competition, its FICO scoring system is still an industry standard. The subprime mortgage crisis has hurt the banks and other financial institutions that supply roughly half of Fair Isaac’s revenue. These customers may cut back on software spending in the near term. However, over the longer term, the subprime crisis will likely increase demand for Fair Isaac’s reliable credit-scoring software....

BROADRIDGE FINANCIAL SOLUTIONS INC. $20 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 140.3 million; Market cap: $2.8 billion; WSSF Rating: Extra risk) offers services to the investment industry in three main areas: investor communications; securities processing; and transaction clearing. These services help financial services institutions and public companies improve their efficiency and customer service. Despite volatile investment industry conditions, Broadridge continues to expand. It recently paid an undisclosed sum for Investigo Corp., which provides accurate and timely data to wealth management firms. This helps them better manage client portfolios, and comply with various securities regulations. Broadridge’s earnings in the fiscal year ended June 30, 2008 rose 2.4%, to $218.5 million from $213.3 million in the prior year. Earnings per share rose 1.3%, to $1.55 from $1.53, on more shares outstanding. These figures exclude unusual items. Revenue rose 3.3%, to $2.21 billion from $2.14 billion....

LIZ CLAIBORNE INC. $15 (New York symbol LIZ, Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 94.8 million; Market cap: $1.4 billion; WSSF Rating: Average) designs a wide variety of clothing and accessories for men and women. It sells its products mainly through department stores, as well as its own retail stores. The company now plans to sell or discontinue 16 of its roughly 40 brands as part of a major restructuring. Besides lowering costs, this plan will free up more cash to invest in brands with better long-term growth prospects. It also plans to expand its own retail operations, which will cut its reliance on department stores....

JONES APPAREL GROUP INC. $19 (New York symbol JNY; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 83.4 million; Market cap: $1.6 billion; WSSF Rating: Average) designs clothing, accessories and footwear under several brands, including Jones New York, Gloria Vanderbilt and Nine West. The company is starting to see some of the benefits of its restructuring plan, which included phasing out some of its unprofitable clothing lines. This has let Jones cut its annual costs by $100 million. The company is also benefiting from a new deal to supply clothing for teens to Wal-Mart. In the second quarter ended July 5, 2008, earnings before one-time items fell 6.6% to $16.9 million from $18.1 million a year earlier. However, per-share earnings grew 17.6%, to $0.20 from $0.17, on fewer shares outstanding. Sales fell 8.2%, to $829.4 million from $903.9 million. Same-store sales at the company’s retail clothing outlets were flat, but grew 5.8% at its footwear stores....

LIMITED BRANDS INC. $20 (New York symbol LTD; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 340.3 million; Market cap: $6.8 billion; 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 44 other countries. Last year, the company sold 75% of its Express and Limited casual clothing chains, which generated lower profits for it than its other operations. In Limited Brand’s second fiscal quarter ended August 2, 2008, sales fell 11.5%, to $2.3 billion from $2.8 billion, partly due to the Express and Limited transactions in the year-earlier quarter. Same-store sales fell 7%. However, earnings per share before one-time items rose 35.0%, to $0.27 from $0.20 a year earlier. Most of the gain came from a successful cost cutting plan....

MCDONALD’S CORP. $62 (New York symbol MCD; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.1 billion; Market cap: $68.2 billion; WSSF Rating: Above average) provides an example: The stock fell over 23%, from around $64 in mid-December 2007 to $49 in January 2008, on fears that high gasoline prices and lower consumer confidence in the wake of the housing market slowdown would limit customer spending. However, we felt the company’s Dollar Menu would continue to attract cost-conscious consumers. Also, McDonald’s operates over 31,000 fast food restaurants in 120 countries. Rising sales in overseas markets would also offset weaker domestic sales, and shield it from a weaker U.S. dollar. As well, new menu items such as premium coffee and healthier foods would continue to spur repeat visits....

H&R BLOCK INC. $25 (New York symbol HRB; Conservative Growth Portfolio, Finance sector; Shares outstanding: 329.2 million; Market cap: $8.2 billion; WSSF Rating: Above average) is best known for its income tax return preparation business. The company provides these services through over 14,500 company- owned and franchised offices in the United States, Canada and Australia. It also sets up temporary offices in major retailers such as Sears and Wal-Mart in the weeks before the April 15 tax deadline. The tax preparation business accounts for about 70% of the company’s total revenue. H&R Block also provides tax, accounting and consulting services to businesses through wholly owned RSM McGladrey Inc., which is the fifth-largest accounting firm in the U.S. Services to businesses account for 20% of H&R Block’s revenue....

TRUE ENERGY TRUST $3.87 (Toronto symbol TUI.UN; SI Rating: Speculative) (403-264-8875; www.tketrust.com; Units outstanding: 79.2 million; Market cap: $306.5 million) produces oil and gas mostly in Alberta and Saskatchewan. About 65% of its production is gas. In the three months ended June 30, 2008, Trilogy’s production fell 30.4%, to 11,922 barrels of oil equivalent per day, from 17,122 barrels. The decline came as the company sold its oil and gas assets in Saskatchewan to focus its operations in Alberta. Cash flow per unit was $0.33, down 29.8% from $0.47. The shares now trade at 2.9 times cash flow. True’s monthly distribution of $0.04 gives it a yield of 12.4%. It flows about 59% of cash flow through to its unitholders. The company used the proceeds of its asset sales to cut its debt to $205.7 million, or 67% of market cap, from 81% at the end of 2007....

TRILOGY ENERGY TRUST $10.75 (Toronto symbol TET.UN; SI Rating: Speculative) (403-290-2900; www.trilogyenergy.com; Shares outstanding: 95.4 million; Market cap: $1.0 billion) holds oil and gas properties in the Kaybob and Grand Prairie areas of central Alberta. Production is weighted 79% toward gas and 21% to oil. In the three months ended June 30, 2008, Trilogy’s cash flow per unit rose 26.8%, to $0.71 from $0.56. Production rose 3.6%, to 21,195 barrels of oil equivalent per day, from 20,467 barrels. Trilogy’s monthly distribution of $0.10 gives it a yield of 11.2%. It flows approximately 34% of its cash flow through to its unitholders. Debt is reasonable at $341.3 million, or 34% of market cap. Trilogy now trades at around 3.8 times its latest cash flow....

ZARGON ENERGY TRUST $21.75 (Toronto symbol ZAR.UN; SI Rating: Speculative) (403-264- 9992; www.zargon.ca; Shares outstanding: 18.2 million; Market cap: $395.6 million) has oil and gas production assets in Alberta, Manitoba, Saskatchewan and North Dakota. Output is weighted 54% toward gas and 46% to oil. In the three months ended June 30, 2008, Zargon’s production rose 9.1%, to 9,239 barrels of oil equivalent per day, from 8,465 barrels. However, cash flow per unit rose 47.6%, to $1.55 from $1.05 a year earlier on sharply higher oil and gas prices. Zargon’s monthly distribution of $0.18 gives the units a yield of 9.9%. The trust flowed just 35% of its cash flow through to its unitholders in the latest quarter. The units now trade at around 3.5 times forecast cash flow based on the latest quarter. Debt of $85.4 million is equal to just under three quarters’ cash flow....

Maple Leaf Foods Inc. $11 (Toronto symbol MFI Conservative Growth Portfolio, Consumer sector; Shares outstanding: 126.9 million; Market cap: $1.4 billion; SI Rating: Average) is Canada’s largest food processing company. Its products include fresh and prepared meats and poultry, mostly under the Maple Leaf and Schneider brands. It also makes fresh and frozen bakery products through 89.8%-owned Canada Bread Co. Ltd. Maple Leaf is currently in the middle of major restructuring that will see it focus on more-profitable packaged meats and meals. In the past two years, it has sold its animal feed operations and scaled back its hog-processing operations. The company is also investing heavily in new plants and equipment. It will probably take Maple Leaf another few months before it starts to realize the full benefits of its plan. Meanwhile, sharply higher prices for grains and energy continue to hurt its profitability. Exports account for about 30% of the company’s sales, and the stronger Canadian dollar also makes its products more expensive outside of Canada.Maple Leaf’s sales rose from $4.2 billion in 2003 to $5.6 billion in 2005, but fell to $5.2 billion in 2007. Earnings before unusual items grew from $0.04 a share (total $83 million) in 2003 to $0.59 a share ($201 million) in 2005. Earnings fell to $0.38 a share ($173 million) in 2006, but improved to $0.51 a share ($199 million) in 2007....

Canada Bread Co., Ltd. $60 (Toronto Symbol CBY Conservative Growth Portfolio, Consumer sector; Shares outstanding: 25.4 million; Market cap: $1.5 billion; SI Rating: Above average) makes a wide variety of baked goods such as bread, bagels and rolls. It also makes specialty pasta and sauces. Major brands include Dempster’s, Olivieri, and Olafson’s. Canada Bread accounts for about 30% of Maple Leaf’s sales. Thanks partly to acquisitions, Canada Bread’s sales rose from $1.2 billion in 2003 to $1.5 billion in 2007. Earnings before one-time items rose from $1.61 a share (total $63 million) in 2003 to $3.31 a share ($129 million) in 2007. Innovative products that take advantage of growing interest in healthy eating are also helping to expand Canada Bread’s earnings. For example, the company has developed a new bread that contains inulin, a fibre that improves digestion. Premium products like this generate higher profit margins for Canada Bread than its regular products....

Toronto-Dominion Bank $64 (Toronto symbol TD; Conservative Growth Portfolio, Finance sector; Shares outstanding: 802.9 million; Market cap: $51.4 billion; SI Rating: Above average) is Canada’s second-largest bank, with assets of $503.6 billion. TD recently completed its acquisition of U.S.-based Commerce Bancorp for $8.5 billion in cash and stock. To put the purchase price in context, TD earned $973 million or $1.32 a share in its second fiscal quarter ended April 30, 2008. The acquisition doubled TD’s retail banking operations in the United States to around 1,100 branches. TD estimates that its larger U.S. operations will contribute $750 million to its earnings in fiscal 2008, and $1.2 billion in 2009. The bank originally planned to re-brand all of its U.S. operations as “TD Commerce Bank”. However, a legal challenge from a smaller bank with a similar name prompted TD to make this change. It’s unlikely that dropping the Commerce name will force TD to writedown any of the $6.1 billion in goodwill it recorded on the purchase....

Bank of Montreal $49 (Toronto symbol BMO Conservative Growth Portfolio, Finance sector; Shares outstanding: 503.5 million; Market cap: $24.7 billion; SI Rating: Above average) is Canada’s fourth-largest bank, with assets of $375.2 billion. The bank recently restructured two of its investment vehicles that hold asset-backed securities. The restructuring averted potential writedowns and costs of as much as $1.5 billion. To put that in context, Bank of Montreal earned $642 million or $1.25 a share in its second fiscal quarter ended April 30, 2008. The latest earnings included a $57 million after-tax gain from the restructuring of these two investment vehicles. The restructuring also reduces the likelihood that Bank of Montreal will have to issue new shares. Bank of Montreal now aims to further cut its long-term risk by building up its retail operations, and shrinking its corporate and stock market businesses. It may also take advantage of the slowdown in the United States to expand its American operations. Bank of Montreal’s main U.S. asset is 100%-owned Harris Bank, which provides banking services in Chicago, Florida and Arizona....

Canadian Imperial Bank of Commerce $63 (Toronto symbol CM Conservative Growth Portfolio, Finance sector; Shares outstanding: 380.8 million; Market cap: $24.0 billion; SI Rating: Above average) is the fifth-largest bank in Canada with assets of $343.1 billion. The problems with U.S. subprime mortgages have hurt CIBC more than the other big five Canadian banks. So far, CIBC has written off $6 billion worth of loans and illiquid securities. CIBC could face a further $1 billion in writedowns due to concerns over the financial health of several major bond insurers. These insurers provide CIBC and other banks with guarantees on securities they hold, such as bonds backed by U.S. subprime mortgages. In the three months ended April 30, 2008, CIBC lost $1.1 billion or $3.00 a share, mainly due to $1.7 billion (after-tax) in writedowns....

Metro Inc. $25 (Toronto symbol MRU.A Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 111.9 million; Market cap: $2.8 billion; SI Rating: Extra risk) operates around 600 retail food stores under the Metro, Metro Plus, Super C, A&P, Dominion, Loeb and Food Basics banners. Metro has completed the first phase of its 2005 acquisition of A&P Canada, which operates 244 stores in Ontario. The first phase involved combining the two companies’ purchasing operations. That generated about $90 million in annual savings. To put that figure in context, Metro earned $58.1 million or $0.51 a share in its second quarter ended March 15, 2008. The company also installed a new computerized inventory management system in the A&P Canada stores. The second phase of the A&P Canada integration involves combining certain stores and private label products, and will probably begin later this year. Fewer banners will lower its marketing costs. As well, a single private label will give it more purchasing power with suppliers. Metro has not revealed how much it expects to save in this second phase, but the costs will probably offset the initial benefits....

BCE INC. $40 (Toronto symbol BCE, Conservative Growth Portfolio, Utilities sector; Shares outstanding: 805.8 million; Market cap: $32.2 billion; SI Rating: Above average) plans to cut its workforce by 6% and simplify its management structure. This will cost BCE $250 million, but should save it $300 million a year. In the three months ended June 30, 2008, BCE earned $425 million or $0.53 a share before one-time items. The consortium headed by the Ontario Teachers’ Pension Plan now aims to complete its $42.75-a-share takeover of BCE by December 11, 2008. Even if the deal falls through, the savings from this latest restructuring will help BCE compete with new entrants in the wireless market. BCE is still a buy.

Petro-Canada $47 (Toronto symbol PCA Conservative Growth Portfolio, Resources sector; Shares outstanding: 484.4 million; Market cap: $22.8 billion; SI Rating: Average) continues to profit from high energy prices, which offset lower production from its offshore operations in Eastern Canada. In the three months ended June 30, 2008, earnings rose 46.0% to $2.38 a share from $1.63 a year earlier. These figures exclude unusual items. Cash flow per share jumped 49.3%, to $4.09 from $2.74. Revenue grew 38.2%, to $7.6 billion from $5.5 billion. Thanks to the strong results, the company has raised its quarterly dividend by 53.8%, from $0.13 a share to $0.20. The new annual rate of $0.80 yields 1.7%. Petro-Canada is a buy.

Nortel Networks Corp. $6.43 (Toronto Symbol NT Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 496.5 million; Market cap: $3.2 billion; SI Rating: Speculative) lost $113 million in the three months ended June 30, 2008 compared to a loss of $37 million a year earlier (all amount except share price and market cap in U.S....