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METRO INC. $23 (Toronto symbol MRU.A Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 113.1 million; Market cap: $2.6 billion; SI Rating: Extra risk) operates 655 grocery stores in Quebec and Ontario. Metro is still absorbing its 2005 purchase of over 240 stores in Ontario from A&P Canada. In the first phase of its integration plan, Metro has saved $90 million by combining the purchasing power of the two chains. That’s roughly 1.5 times the $58.3 million or $0.51 a share that Metro earned in its first fiscal quarter ended December 22, 2007. Metro’s operating margin in the latest quarter fell to 5.45% from 6.15% a year earlier. That’s mainly due to costs of consolidating warehouses in Quebec and installing a new computer system in Ontario. Margins should improve as Metro realizes the benefits of the second phase of the A&P integration, which includes combining certain banners and private label brands....

TRANSCONTINENTAL INC. $15 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 83.7 million; Market cap: $1.3 billion; SI Rating: Average) is a leading provider of direct marketing services, such as direct mail and client database management. This business supplies 45% of its revenue. It also offers commercial printing services (30% of revenue), and publishes over 180 newspapers and 35 magazines (25% of revenue). The United States accounts for 25% of its revenue. Transcontinental continues to spend heavily upgrading its printing plants, including $80 million in two plants in Montreal. This will give customers more flexibility over colour and printing materials, as well as cut Transcontinental’s operating costs. These investments are also helping Transcontinental win more outsourcing contracts from publishers. It already has long-term deals to print The Globe and Mail and The New York Times....

THE THOMSON CORP. $36 (Toronto symbol TOC; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 638.9 million; Market cap: $23.0 billion; SI Rating: Above average) provides specialized information to users in the legal, accounting, financial, scientific and healthcare professions. Over 80% of Thomson’s revenue comes from electronic products, such as software and databases. As well, 80% comes from subscriptions, which gives its predictable revenue streams. In 2007, Thomson earned $1.1 billion before one-time items, up 28.4% from $857 million in 2007 (all amounts except share price and market cap in U.S. dollars). Per-share earnings rose 27.1%, to $1.69 from $1.33. Revenue grew 10.6%, to $7.3 billion from $6.6 billion. If you disregard acquisitions, revenue rose 6%. Thomson aims to complete its merger with UK-based Reuters Group plc in mid-April. The deal will let Thomson take advantage of Reuters operations to expand sales in Europe and Asia and cut its reliance on North America, which accounts for 83% of its revenue. The company can also market Reuters products to its own customers....

TORSTAR CORP. $17 (Toronto symbol TS.B; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 78.7 million; Market cap: $1.3 billion; SI Rating: Above average) publishes The Toronto Star, Canada’s largest daily newspaper. It also publishes other daily and community newspapers in Southern Ontario. Newspapers supply 70% of Torstar’s profit and revenue. The remaining 30% comes from wholly owned subsidiary Harlequin Enterprises Ltd., which is the world’s largest publisher of romance novels. Torstar has expanded its Internet properties in the past few years, which helps cut its exposure to declining newspaper circulation. As well, the company bought 20% of CTVglobemedia Inc. This business owns the CTV Television Network, specialty TV channels, radio stations and The Globe and Mail newspaper. These assets help broaden Torstar’s geographic exposure....

TECK COMINCO LTD. $43 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 441.9 million; Market cap: $19.0 billion; SI Rating: Average) is the world’s top producer of zinc, which accounts for 35% of Teck’s revenue. To cut its dependence on zinc, Teck has diversified in the past few years through acquisitions. The biggest was its $4.1 billion cash-and-stock purchase of Aur Resources in August 2007. Aur owns the Duck Pond copper mine in Newfoundland, plus two other mines in Chile. Copper now supplies 30% of Teck’s revenue. Teck’s other products include coal (20% of revenue), as well as gold, silver, lead and other metals (15%). Thanks mainly to strong demand and rising prices for metals, Teck’s revenue jumped from $2.4 billion in 2003 to $6.5 billion in 2006. Revenue slipped to $6.4 billion in 2007. Earnings rose from $0.28 a share (total $103.0 million) in 2003 to $5.26 a share ($2.2 billion) in 2006. Earnings in 2007 fell to $4.06 a share ($1.8 billion), mainly due to lower zinc and coal prices. The rising Canadian dollar also weighed on Teck’s 2007 earnings. That’s because Teck sells its products in U.S. dollars, but most of its expenses are in Canadian dollars. Cash flow per share shot up from $0.86 in 2003 to $5.76 in 2006, but fell to $4.64 in 2007....

TELUS CORP. (Toronto symbols T $57 and T.A $56; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 337.9 million; Market cap: $19.3 billion; SI Rating: Above average) is the second-largest provider of telecommunication services in Canada, after BCE Inc. It has over 4.5 million regular telephone customers and 1.1 million Internet subscribers in British Columbia, Alberta and parts of Quebec. These operations account for about 55% of Telus’s revenue and 50% of its earnings. The rest comes from Telus’s wireless business, which has 5.1 million customers nationwide. Telus’s revenue grew from $7.0 billion in 2002 to $8.7 billion in 2006, or 5.6% compounded annually. The company lost $0.72 a share (total $227.1 million) in 2002, due to restructuring costs following the Clearnet acquisition. But thanks to strong demand for wireless service, Telus’s profits grew from $0.93 a share ($329.8 million) in 2003 to $3.23 a share ($1.1 billion) in 2006. Cash flow per share more than doubled, from $3.88 in 2002 to $8.78 in 2006....

TERANET INCOME FUND $9.50 (Toronto symbol TF.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 155.0 million; Market cap: $1.5 billion; SI Rating: Speculative) manages Ontario’s electronic land registration system. Over 80,000 customers use its proprietary, software application, Teraview, to conduct electronic real estate registrations as well as title and writ searches. Teranet has an exclusive license from the Ontario government to operate the land registry system until March 31, 2017. Teranet’s units began trading on June 16, 2006 after the fund completed an initial public offering at $10.00 a unit. The fund pays distributions of $0.065 a month. The annual rate of $0.78 yields 8.2%. Teranet distributed 70% of its cash flow to unitholders in 2007....

PRECISION DRILLING TRUST $21 (Toronto symbol PD.UN; Aggressive Growth Portfolio, Resources sector; Units outstanding: 125.8 million; Market cap: $2.6 billion; SI Rating: Extra risk) earned $2.73 a unit in 2007, down 40.1% from $4.56 in 2006. Cash flow per share fell 35.4%, to $3.34 from $5.17, while revenue fell 28.6%, to $1.0 billion from $1.4 billion. Weaker natural gas prices and higher royalty payments in Alberta hurt demand for its drilling rigs. Precision plans to keep expanding in the United States, which now accounts for roughly 8% of its revenue. Precision’s new rigs are more efficient than regular models, and should help Precision win contracts away from U.S. operators of older rigs. The trust also plans to expand internationally in 2008. Precision pays regular monthly distributions of $0.13 a unit. That gives the units a current yield of 7.4%....

THE WESTAIM CORP. $0.26 (Toronto symbol WED; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 94.0 million; Market cap: $24.4 million; SI Rating: Speculative) owns 74.5% of Nucryst Pharmaceuticals Corp. (Toronto symbol NCS), which makes medical products that prevent infection in burns and wounds. Based on current prices, this investment is worth $0.23 per Westaim share. A new development deal with UK-based Smith & Nephew plc should expand Nucryst’s earnings in 2008 and beyond. Westaim itself is still debt free, and had cash of $0.33 a share at December 31, 2007. Westaim is still a hold, but only for highly aggressive investors.

CANADIAN PACIFIC RAILWAY LTD. $67 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 153.3 million;Market cap: $10.3 billion; SI Rating: Above average) recently acquired 40 new locomotives, but mechanical problems have hurt the reliability of its fleet. Bad weather, rising fuel costs and an unfavourable regulatory ruling could also put pressure on CP’s first quarter earnings. Despite these setbacks, CP’s earnings in 2008 should still grow about 9% to $4.72 a share. The stock trades at 14.2 times that figure. CP Rail is a buy.

Arbor Memorial Services Inc. $31 (Toronto symbol AB Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 10.7 million; Market cap: $331.7 million; SI Rating: Average) Arbor earned $5.43 million in its first fiscal quarter ended January 31, 2008, up slightly from $5.41 million a year earlier....

ISHARES CANADIAN BOND INDEX FUND $29.21 (CWA Rating: Income) (Toronto symbol XBB; buy or sell through a broker) mirrors the performance of the Scotia Capital Universe Bond Index. This index consists of a diversified range of investment grade Canadian government and corporate bonds, with a term to maturity of more than one year. At last report, the bonds in the index were 41.5% Government of Canada bonds, 26.7% Provincial government bonds, 2.1% municipal bonds and 28.8% corporate bonds....

ISHARES CANADIAN SHORT BOND INDEX FUND $28.73 (CWA Rating: Income) (Toronto symbol XSB; buy or sell through a broker) mirrors the performance of the Scotia Capital Short Term Bond Index. This index consists of a diversified range of investment grade federal, provincial, municipal and corporate bonds, with terms to maturity of between one and five years. Top issuers include Canada Mortgage and Housing, RBC Capital Trust, Province of Ontario, Province of Quebec and Royal Bank of Canada....

T. ROWE PRICE GROUP INC. $54 (Nasdaq symbol TROW; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 263.8 million; Market cap: $14.2 billion; WSSF Rating: Average) sells and manages over 90 no-load mutual funds. It has over $400 billion in assets under management. The stock got as high as $65.46 in December 2007, but has moved down with the stock market. While the company’s mutual funds have stayed away from low-quality, fixed-income investments such as subprime mortgages, its total fee income rises and falls with the value of the securities in its funds. The company continues to enjoy strong results from its “Retirement Funds”. These funds invest in other T. Rowe Price funds and automatically adjust asset allocation according to an investor’s age. Retirement Funds now account for 12% of the company’s assets under management, up from 4% in 2006....

H&R BLOCK INC. $19 (New York symbol HRB; Conservative Growth Portfolio, Finance sector; Shares outstanding: 325.0 million; Market cap: $6.2 billion; WSSF Rating: Above average) prepares income tax returns through offices in the United States, Canada, Australia and the UK. Other services include investment planning and insurance. In December 2007, the company canceled a deal to sell its Option One mortgage business due to the problems in the mortgage securities market and slumping home prices. Instead, H&R Block will now wind down its mortgage operations. While competition from do-it-yourself software programs have hurt demand for H&R Block’s tax services in the past few years, increasingly complex tax rules should help it attract new clients. The company’s own TaxCut software has also helped it take advantage of growing interest in electronic filing. Washington’s new stimulus plan should also spur demand for tax advice. Most citizens will need to file a 2007 tax return to qualify for a rebate....

DEL MONTE FOODS CO. $7.65 (New York symbol DLM; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 200.7 million; Market cap: $1.5 billion; WSSF Rating: Average) makes canned fruits and vegetables, tuna, sauces and soups under the Del Monte, StarKist and College Inn brands. This business accounts for 60% of its sales. The other 40% comes from its pet food business, whose brands include Meow Mix, 9Lives and Milk-Bone. Del Monte’s stock has moved down from its peak of $13 in July 2007. That’s because the company now expects food costs will rise by $170 million in fiscal 2008, up from its earlier estimate of $145 million. In its second fiscal quarter ended October 28, 2007, Del Monte’s earnings rose 12.7%, to $26.7 million from $23.7 million a year earlier. However, if you disregard restructuring and other costs, per-share earnings fell 22.2%, to $0.14 from $0.18. Sales rose 5.0%, to $938.1 million from $893.5 million....

MCCORMICK & CO. INC. $36 (New York symbol MKC; Income Portfolio, Consumer sector; Shares outstanding: 115.1 million; Market cap: $4.1 billion; WSSF Rating: Average) is the world’s leading maker of spices, herbs, seasonings, flavorings, sauces and extracts. Top brands include McCormick, Club House, Zatarain’s and Schwartz. McCormick likes to use acquisitions to enhance its product line or expand overseas. For example, it recently agreed to pay $605 million for the Lawry’s and Adolph’s brands of marinades and seasoning. It also agreed to buy Canadian honey producer Billy Bee Honey Products Ltd. for $75 million. These operations generate annual sales of $187 million, and should immediately add to McCormick’s earnings....

CONAGRA FOODS INC. $22 (New York symbol CAG; Income Portfolio, Consumer sector; Shares outstanding: 487.6 million; Market cap: $10.7 billion; WSSF Rating: Above average) makes a wide variety of packaged foods. Major brands include Chef Boyardee (pasta), Healthy Choice (diet foods), Orville Redenbacher (popcorn), Reddi-wip (whipped cream) and Hunt’s (canned tomatoes and sauces). In the past few years, ConAgra has sold off its fresh food and animal feed operations to focus on its more profitable processed food businesses. An ongoing cost cutting plan continues to help ConAgra cope with higher prices for ingredients and fuel. In its second fiscal quarter ended November 25, 2007, ConAgra earned $0.53 a share, up 35.9% from $0.39 a year earlier. The latest earnings exclude costs related to the recall of contaminated peanut butter and pot pies. The company quickly fixed these problems, and has resumed production. Sales rose 12.9%, to $3.5 billion from $3.1 billion....

H.J. HEINZ CO. $45 (New York symbol HNZ; Income Portfolio, Consumer sector; Shares outstanding: 316.9 million; Market cap: $14.3 billion; WSSF Rating: Above average) makes condiments, sauces, beans, pasta and infant food. Its flagship product, Heinz Ketchup, accounts for 60% of U.S. ketchup sales. Top brands include Lea & Perrins, Ore-Ida, and Weight Watchers. Heinz is starting to realize the benefits of its strategic plan. This includes spending more on new product development and marketing. The company is also targeting developing countries such as China, India and Russia for new growth. Emerging markets now account for 15% of sales (overseas markets as a whole supply 60% of Heinz’s sales). Heinz aims to double sales in emerging markets, as rising prosperity makes its products more affordable. In its third fiscal quarter ended January 30, 2008, Heinz’s earnings slipped to $218.5 million from $219.0 million a year earlier. However, per-share earnings rose 3.0%, to $0.69 from $0.67, on fewer shares outstanding. Sales grew 13.0%, to $2.6 billion from $2.3 billion. If you exclude foreign exchange gains, sales grew 8.6%....

GENERAL MILLS INC. $57 (New York symbol GIS; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 336.8 million; Market cap: $19.2 billion; WSSF Rating: Above average) is the second-largest cereal maker in the United States after Kellogg. Top brands include Cheerios, Chex, Total, Kix, and Wheaties. Other products include baking mixes (Betty Crocker), dinner mixes (Hamburger Helper) and yogurt (Yoplait). The company is doing a good job controlling its operating costs, which has helped offset rising grain prices. Hedging contracts and product price increases have also helped shield it from higher input costs. In its second fiscal quarter ended November 25, 2007, General Mills earned $390.5 million, up 1.3% from $385.4 million a year earlier. Per-share earnings rose 5.6%, to $1.14 from $1.08, due to fewer shares outstanding. The latest earnings included a $0.04 a share charge stemming from a recall of frozen pizza. Sales rose 5.7%, to $3.7 billion from $3.5 billion....

KRAFT FOODS INC. $32 (New York symbol KFT; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.6 billion; Market cap: $51.2 billion; WSSF Rating: Above average) is the world’s second-largest food company after Swissbased Nestle. Leading brands include Kraft (cheese), Maxwell House (coffee), Nabisco (biscuits and cookies) and Oscar Meyer (meats). In November 2007, Kraft agreed to merge its Post cereals business with Ralcorp Holdings Inc. (New York symbol RAH). Kraft will receive $2.6 billion in cash and Ralcorp shares. Prior to the closing of the deal in mid-2008, Kraft will hand out the Ralcorp shares to its own stockholders in a way that will let them avoid capital gains taxes. Kraft stockholders will then own 54% of Ralcorp. In 2007, Kraft’s revenue rose 8.1%, to $37.2 billion from $34.4 billion in 2006. These figures include the Post cereal operations. However, earnings before onetime items fell 6.2%, to $1.82 a share (total $2.9 billion) from $1.94 a share ($3.2 billion). Higher raw material costs, particularly milk, offset the gains from its restructuring plan....

J.C. PENNEY CO. INC. $50 (New York symbol JCP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 221.7 million; Market cap: $11.1 billion; WSSF Rating: Average) operates 1,067 department stores throughout the United States and Puerto Rico. About 40% of U.S. households have shopped at a JC Penney store in the past year. Apparel, footwear and jewelry account for about 75% of Penney’s total sales. Home furnishings and services such as services such as hair styling, optical, portrait photography and custom decorating provide the remaining 25%. Sales rose from $17.79 billion in 2004 to $19.90 billion in 2007 (fiscal years end January 31). Sales in 2008 slipped to $19.86 billion. Same-store sales were flat in 2008, compared with a gain of 4.9% in 2007....

LOJACK CORP. $12.51 (Nasdaq symbol LOJN; SI Rating: Speculative) (www.lojack.com; 1-781-326 4700; Shares outstanding: 18.5 million; Market cap: $231.8 million) sells vehicle theft recovery systems. The company has two main products: the LoJack Vehicle Recovery System and the LoJack Early Warning System. LoJack operates in the U.S. and 30 other countries around the world. In Canada, the company operates through its subsidiary, Boomerang Tracking. LoJack’s recovery systems use radio frequency technology to track stolen vehicles. Once a customer realizes a vehicle is stolen, they contact police. Local police cruisers and aircraft equipped with LoJack technology (supplied at no cost by LoJack to law enforcement agencies) are led to the tracking device. In the three months ended December 31, 2007, Lo- Jack’s sales rose 8.2%, to $55.3 million from $51.1 million. Earnings excluding one-time items 2.3%, to $4.5 million or $0.24 a share, from $4.4 million or...

DUNDEEWEALTH INC. $12.63 (Toronto symbol DW; SI Rating: Speculative) (1-800-301-6745; www.dundeewealth.com; Shares outstanding: 144.3 million; Market cap: $1.8 billion) has terminated the special committee set up late last year to study expressions of interest from companies interested in making takeover offers. Dundee Corp. will not sell its interest in DundeeWealth at this time. Dundee Corp. controls 60.8% of DundeeWealth. The Bank of Nova Scotia, Power Financial, Manulife Financial and CI Financial Income Fund were all reportedly considering bids. In September, 2007, Scotiabank purchased an 18% interest in DundeeWealth for $348 million. Scotiabank also has a right of first refusal on any sale of the controlling interest in DundeeWealth. DundeeWealth is still a hold....

MOLSON COORS CANADA INC. (Toronto symbols TPX.A $51 and TPX.B $45; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 145.6 million; Market cap: $7.1 billion; SI Rating: Average) is the world’s fifth-largest brewer. The company is steadily expanding its portfolio of premium brands, mostly through deals with foreign brewers. For example, a new distribution deal with Mexican brewer Modelo expands the availability of the popular Corona brand in Canada. Molson Coors also continues to focus on cost controls. In the first nine months of 2007, it found $109 million in annual savings (all amounts except share price and market cap in U.S. dollars). A new deal to merge its operations in the U.S. and Puerto Rico with those of rival brewer Miller will cut annual costs by a further $500 million....