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CGI GROUP INC. $10 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 324.8 million; Market cap: $3.2 billion; SI Rating: Speculative) is among the largest independent information technology and business process services firms in North America. The company enjoys strong recurring revenue from its long-term outsourcing contracts. CGI continues to renew existing contracts. It has just signed a $27 million, two-year contract renewal with the U.S. Department of Housing and Urban Development (HUD), to administer the processing of multi-family housing unit payments in Ohio. This contract is part of a larger relationship with HUD, in place since 2000. In the fiscal year ended September 30, 2007, earnings before unusual items grew 44.2%, to $0.75 a share (total $251.1 million) from $0.52 a share ($191.3 million) in the prior year. Revenue rose 5.7%, to $3.7 billion from $3.5 billion. CGI spent $126.4 million on share buybacks in fiscal 2007. The stock has gained roughly a third in the past year, but still trades at just 13.4 times the $0.83 a share it will probably earn in fiscal 2008....

PRECISION DRILLING TRUST $16 (Toronto symbol PD.UN; Aggressive Growth Portfolio, Resources sector; Units outstanding: 125.8 million; Market cap: $2.0 billion; SI Rating: Extra risk) is Canada’s largest provider of drilling and related services to the oil and gas industry. Precision’s drilling fleet consists of 259 land drilling rigs. In the third quarter of 2007, Precision’s revenue fell 34.8%, to $227.9 million from $349.6 million a year earlier. Earnings per unit fell 48.1%, to $0.55 from $1.06. Cash flow per unit fell 46.5%, to $0.68 from $1.27. Lower natural gas prices have cut demand for drilling services in Precision’s core markets in Western Canada. Rising natural gas inventories have also hurt rig demand. Precision cut its monthly distribution in June 2007 by 31.6%, from $0.19 a unit to $0.13. It now yields 9.8%....

TD HEALTH SCIENCES FUND $15.67 (CWA Rating: Speculative) (TD Asset Management, P.O. Box 7500, Station A, Toronto, Ontario. M5W 1P9. 1-800-463-3863; Web site: www.tdcanadatrust.ca. No load — deal directly with the bank) invests mostly in U.S. companies with a mixture of large-capitalization stocks and earlier-stage biotechnology shares. The managers believe all these firms will profit from an aging population stimulating higher spending on health care, drugs and research. The fund’s top holdings include WellPoint, Alexion Pharmaceuticals, Elan Corp., CVS/Caremark, Genentech, Gilead Sciences, Merck & Co., Aetna, Roche Holdings and Cephalon. Its MER is 2.70%. The $204.2 fund gained 4.3% over the last year. TD Health Sciences Fund is still a buy.

RENAISSANCE GLOBAL HEALTH CARE FUND $15.89 (CWA Rating: Speculative) (CIBC Asset Management, 1500 University Street, Suite 800, Montreal, PQ. H3A 3S6. 1-800-268-8258; Web site: www.talvest.com. Available from brokers) is the new name of the Talvest Global Health Care Fund. The fund invests in global companies in a variety of segments of the health-care industry. Top holdings include Schering-Plough Corp., McKesson Corp., Cardinal Health, Sanofi-Synthelbo, Takeda Chemical Industries, Eisai Co. Ltd., Forest Laboratories, Medtronic, Daiichi Sankyo and Eli Lilly. Talvest Global Health Care lost 3.5% over the last year. The $954.6 million fund’s MER is 3.16%. Renaissance Global Health Care Fund is still a buy.

FIDELITY FOCUS TECHNOLOGY FUND $10.18 (CWA Rating: Aggressive) invests mainly in technology companies. The fund’s investments include computer services, computer software and systems, communications systems, electronics, office equipment, scientific instruments and computer chips. The fund looks for stocks that have strong earnings growth and appear undervalued. Fidelity Focus Technology Fund’s top holdings now include Cisco Systems, Canon Inc., Apple Computer, Nokia, Qualcomm, Google, Hewlett-Packard, Broadcom, Oracle Corporation and Taiwan Semiconductor....

FIDELITY FOCUS FINANCIAL SERVICES FUND $21.90 (CWA Rating: Aggressive) invests mostly in financial services companies in brokerage and investment management, investment banking, life insurance, personal loans, property and casualty insurance, and savings and loans. Fidelity Focus Financial Services Fund now holds a higher percentage of international stocks than in the past. Geographically, its holdings are allocated: the U.S., 36.1%; Japan, 17.2%; Italy, 13.4%; Germany, 6.4%; the Netherlands, 4.4%; France, 3.5%; the UK, 3.5%; Switzerland, 2.7% Bermuda, 2.2%; and Thailand, 2.0%. The top holdings of this $75.2 million fund are ABN Amro Holdings, Fannie Mae, Royal Bank of Scotland Group, Mitsubishi UFJ Financial Group, National Financial Partners, AXA, CitiGroup, Unicredito Italiano, Allianz and T&D Holdings....

FIDELITY FOCUS CONSUMER INDUSTRIES FUND $17.49 (CWA Rating: Aggressive) (Fidelity Investments Canada, 483 Bay St., Suite 200, Toronto, Ont. M5G 2N7. 1-800-263-4077; Web site: www.fidelity.ca. Load fund — available from brokers) invests mainly in U.S. consumer goods and services companies. Consumer spending is a key part of the U.S. economy, accounting for approximately two-thirds of activity. Fidelity Focus Consumer Industries Fund’s top holdings include Procter & Gamble, Nestle SA, Tesco, CVS Caremark, Toyota Motor, British American Tobacco, PepsiCo, Philips Electronics, Comcast Corp. and Sony. The $8.4 million fund is broken down by industry as follows: 9.6% in Media, 12.6% in Food products, 8.6% in Household products, 10.1% in Food & staples retailing and 9.2% in Automobiles....

TRANSALTA POWER, L.P. $8.38 (Toronto symbol TPW.UN; SI Rating: Extra risk) is now the subject of a friendly $8.38 per unit takeover offer from Hong Kong-based Cheung Kong Infrastructure Holdings Limited. TransAlta Corp. has no direct interest in TransAlta Power. However, TransAlta Power owns 49.99% of five gas-fired power plants in Ontario, Saskatchewan and Alberta. TransAlta owns the remaining 50.01%, and runs the plants. The takeover offer is still positive news for TransAlta Corp., since TransAlta Power’s new owner may eventually offer to buy TransAlta’s controlling stake in these plants....

TEMPLETON EMERGING MARKETS FUND $25.25 (New York symbol EMF; CWA Fund Rating: Speculative) is a closed-end fund that invests in equities from emerging economies. The fund’s manager is Franklin Templeton. Templeton Emerging Market Fund provides broad geographic diversification. Although volatile, it provides access to fast-growing economies such as Brazil, China, India and others. The $418.1 million fund’s regional allocation is Asia (58.8%), Europe (19.1%), Latin America (18%) and the Middle East and Africa (4.1%). Asian country allocations are China (17%), South Korea (9.3%), Turkey (8.8%), Thailand (7.8%), India (5.3%), Taiwan (4.8%), Pakistan (2.4%), Hong Kong (1.8%) and Indonesia (1.6%). Europe comprises Russia (8.8%), Hungary (4.7%), Poland (3.1%), Austria (1.3%) and Sweden (1.2%). Latin America includes Brazil (15.2%) and Mexico (2.8%). The African country is South Africa (4.1%)....

NEW GERMANY FUND $18.50 (New York symbol GF; CWA Fund Rating: Speculative) is a closed-end fund that invests mostly in middle-market (small and mid-cap) German equities. The fund’s manager is Deutsche Asset Management. The $486 million fund’s 56 holdings are currently in Germany (94%), the Netherlands (4%) and Ireland (2%). The New Germany Fund’s focus on mid-tier German stocks provides investors access to some of Germany’s fastest-growing companies The New Germany Fund’s top holdings are Saltzgitter (metals and mining) at 4.8%; Fresenius (health care equipment), 4.6%; K+S (chemicals), 4.3%; GEA Group (chemicals), 3.6%; Software (software), 3.3%; Bilfinger Berger (construction and engineering), 3.2%; European Aeronautical Defense (Dutch-based aerospace and defense), 3.2%; SGL Carbon (electrical equipment), 3.1%; Rheinmetall (industrial conglomerate), 2.9%; and Celesio (healthcare providers and services), 2.9%....

KOREA FUND $50.80 (New York symbol KF; CWA Fund Rating: Speculative) is a closed-end fund that invests at least 80% of its assets in Korean equities. Currently, 99% of its assets are in South Korean stocks. The manager is RCM Asia Pacific. The fund’s top holdings are Samsung Electronics at 10.1%; Posco (steel), 7.8%; Hyundai Heavy Industries (shipbuilding), 6.3%; Daewoo Shipbuilding, 5.4%; Samsung Fire & Marine (insurance), 5.2%; GS Engineering and Construction, 5%; Shinhan Financial, 4.2%; Kookmin Bank, 3.8%; Samsung Heavy Industries (shipbuilding), 3.8%; and Shinsegae Co. Ltd. (investment and credit research), 3.2%. The industry exposure of the 39 stocks in the fund’s $1.1 billion portfolio is as follows: Industrials, 35%; Information technology, 18%; Financials, 16%; Materials, 11%; Consumer discretionary, 9%; Consumer staples, 5%; Telecom, 4%; and Healthcare, 1%....

CENTRAL EUROPE AND RUSSIA FUND $64.20 (New York symbol CEE; CWA Fund Rating: Speculative) is a closed-end fund that invests mostly in larger cap stocks from Russia and central Europe. The fund’s manager is Deutsche Asset Management International. The $884.5 million fund is currently invested in Russia (54%), Poland (21%), Turkey (11%), Czech Republic (5%), Hungary (5%), Austria (3%) and Cyprus (1%). Central Europe and Russia Fund’s top holdings are Gazprom (a Russian gas utility) at 9.7%; Lukoil (Russian oil and gas), 7.3%; Norilsk Nickel (Russian metals and mining), 7.0%; Unified Energy (Russian electric utility), 5.2%; Sberbank (Russian bank), 4.6%; Bank Polska (Polish bank), 4.6%; Ceske Energticke (Czech energy equipment and services), 3.9%; Bank Pekao (Polish bank), 3.6%; Telekomunikacja Polska (Polish telecom), 3.6%; and OAO Rosneft (Russian oil and gas), 3.1%....

ALTAMIRA SCIENCE & TECHNOLOGY FUND $8.82 (CWA Rating: Aggressive) (Altamira Investment Services, The Exchange Tower, 130 King St. West, Suite 900, Toronto, Ont. M5X 1K9. 1-800-263-2824; Web site: www.altamira.com. No load — deal directly with the company) invests in the telecommunications, biotechnology, environmental technology, health care and computer industries. Top holdings are Microsoft, Oracle, VeriSign, Sun Microsystems, Intel, Medco Health Solutions, Google, Research in Motion and Cisco Systems. The $64.2 million fund gained 11.8% in Canadian dollars over the last year. The Nasdaq index rose 6.9% in Canadian funds. The fund’s MER is 2.70%....

TD SCIENCE & TECHNOLOGY FUND $15.36 (CWA Rating: Aggressive) (TD Asset Management, P.O. Box 7500, Station A, Toronto, Ontario. M5W1P9. 1-800-386-37 57; Web site: www.tdcanadatrust.com. No load — deal directly with TD) invests mostly in U.S. firms engaged in the research, development and production of products or services related to science and technology. TD Science & Technology’s top holdings include: Microsoft Corporation, Google, Cisco Systems, Hewlett-Packard, American Tower, Qualcomm, Electronic Arts, Foxconn International, Adobe Systems, Marvell Technology Group, Samsung, Nokia, Intel and Apple. The fund’s gain in Canadian dollars over the last year was 11.0%. The Nasdaq index rose 6.9% in Canadian funds. The $115.3 million fund’s manager is well-respected U.S. mutual fund manager T. Rowe Price Associates. Its MER is 2.70%....

POWER CORPORATION $40.52 (Toronto symbol POW; SI Rating: Above average) is a diversified holding company. Power Corp., founded in the 1920s to develop hydroelectric power, now controls one of Canada’s largest mutual-fund companies, IGM Financial, and Great- West Lifeco, one of the largest life insurers. Power Financial, 66.4% held, is a holding company for Power Corp.'s financial assets, including 72.9% of Great-West Lifeco and 58.4% of IGM Financial. As well, Power Financial holds 50% of Parjointco, which in turn owns a 54.3% interest in Swiss-listed Pargesa Holdings SA. Pargesa has 95% of its assets in five large European companies: Imerys (minerals processing), Total SA (world’s fourth-largest oil firm), Pernod Ricard (wine and spirits), Suez (energy, water and waste services) and Lafarge SA (cement and building materials.) Power Corp. also owns 100% of Gesca Ltée, which publishes Montreal’s La Presse and six other daily newspapers....

TEXAS INSTRUMENTS INC. $32 (New York symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.4 billion; Market cap: $44.8 billion; WSSF Rating: Average) is more versatile than Intel or Nvidia. That’s because it makes chips for a wider variety of electronic devices, including mobile phones, digital cameras and DVD players. It has over 50,000 customers, although mobile phone maker Nokia Corp. accounts for about 15% of its total revenue. Strong competition in the chip industry continues to drive down prices. To help keep its profit margins high, Texas Instruments is now working on ways to cut its manufacturing costs. For example, it now outsources about half of its advanced digital chip manufacturing to outside firms. Texas Instruments feels these moves, plus closing older plants, will save it $200 million a year. Texas Instruments earned $0.52 a share (total $758 million) in the third quarter of 2007, up 15.6% from $0.45 a share ($686 million) a year earlier....

NVIDIA CORP. $38 (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 548.8 million; Market cap; $20.9 billion; WSSF Rating: Average) is the most specialized of these three chipmakers. It develops 3D graphics chips and related technology for computers, gaming consoles and other electronic devices. The company focuses on design, and outsources production to other chipmakers. Nvidia’s stock has nearly doubled in the past six months, despite concerns over the recent acquisition of chief rival ATI Technologies by Advanced Micro Devices (AMD). Although AMD-powered computers will probably only use ATI graphic chips in the future, Nvidia is doing a good job expanding into new fields such as graphics chips for cellphones and handheld video game players. Nvidia now has roughly 33% of the graphics market, up from 20% a year earlier....

INTEL CORP. $26 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.8 billion; Market cap: $150.8 billion; WSSF Rating: Above average) is the world’s largest maker of electronic chips. Microprocessors for personal computers and servers account for two-thirds of its revenues. Intel ran into trouble a few years ago as new chips from its main competitor, Advanced Micro Devices Inc. (AMD), cut into its market share. But Intel has done a good job cutting costs, which will help it survive future price wars with AMD. The company has also shifted its research focus, from raw chip speed to chips that use less energy and run cooler. In the high-margin server market, AMD recently started selling its new “Barcelona” chip, which has four processors (quad-core) compared with just two on competing Intel chips. Multi-core chips let computers perform several tasks simultaneously....

THE BOEING CO. $94 (New York symbol BA; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 777.2 million; Market cap: $73.1 billion; WSSF Rating: Above average) is the world’s second-largest maker of commercial aircraft, behind Europe’s Airbus. This business accounts for 50% of its revenue and 60% of its profits. Boeing’s other main business is its defense and space operations, which make advanced military fighters and helicopters, missiles and communication satellites. Sales to the U.S. Defense Department account for roughly 85% of this division’s revenue. The stock fell below $25 in 2003, as 9/11 and the Iraq war cut air travel volumes plus demand for new aircraft. At that time, Boeing decided to go ahead with a new plane called the 787 Dreamliner....

SNC-LAVALIN GROUP INC. $49 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 151.0 million; Market cap: $7.4 billion; SI Rating: Average) designs and builds a variety of large-scale projects, such as roads, bridges and electrical power systems. The company also has a long history of building conventional and heavy oil processing plants, as well as systems to produce difficult-to-extract heavy oil. Petroleum and chemical processing account for about 20% of SNC’s total revenue. Oil sands operators currently use natural gas to generate the steam needed to pump heavy oil to the surface. Gas accounts for up to 60% of a well’s operating costs, so many project operators are looking into alternative forms of energy such as nuclear power. SNC has plenty of experience building nuclear power stations, so it would likely participate in any future construction. SNC’s stock has gained about 80% in the past year to a new high of $49. But at 45.0 times its projected 2007 profit of $1.09 a share, it’s expensive in relation to its immediate prospects. The $0.36 dividend yields 0.7%....

FINNING INTERNATIONAL INC. $32 (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 179.6 million; Market cap: $5.7 billion; SI Rating: Above average) sells and rents Caterpillar brand tractors, bulldozers and trucks. The company continues to win new contracts from oil sands developers. It recently received a $100 million order for 19 trucks. Due to a huge backlog, it will take Finning about two years to deliver these vehicles. Most new contracts like this also cover replacement parts and maintenance services. That should provide Finning with steady revenues for years after it delivers this equipment. The stock trades at 20.4 times its likely 2007 earnings of $1.57 a share, and the $0.36 dividend yields 1.1%. Finning’s high exposure to volatile commodity prices increases its risk. But we feel this boom could last several more years due to spreading industrialization in Asia....

DUNDEE CORP. $23 (Toronto symbol DC.A; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 75.4 million; Market cap: $1.7 billion; SI Rating: Average) is reorganizing its operations, and selling certain assets. Dundee is a holding company with subsidiaries in three main areas: wealth management, real estate and resources. Dundee’s main subsidiary is 56.3%-owned DundeeWealth Inc., which offers wealth management services and owns the Dynamic family of mutual funds. In September 2006, Dundee- Wealth launched Dundee Bank of Canada, a Schedule I Chartered Bank. DundeeWealth has now agreed to sell Dundee Bank to Bank of Nova Scotia for $260 million. Scotiabank has also purchased new shares of DundeeWealth for $348 million. That gives Scotiabank an 18% stake....

HART STORES INC. $4.00 (Toronto symbol HIS; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 13.6 million; Market cap: $54.4 million; SI Rating: Speculative) operates 76 midsized department stores, mainly in Eastern Canada. Hart prefers to focus on smaller cities that larger department stores tend to avoid. In the past two years, the company has focused most of its expansion efforts on Ontario, where it now has 11 stores. Thanks to three new stores, Hart’s sales in its second fiscal quarter ended August 4, 2007 rose 4.3%, to $41.1 million from $39.4 million a year earlier. Same-store sales grew just 0.1%. Earnings rose 14.3%, to $0.16 a share from $0.14....

TRANSCONTINENTAL INC. $21 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; 84.5 million; Market cap: $1.8 billion; SI Rating: Average) is the largest commercial printer in Canada, and the sixth-largest in North America. It’s also a leading publisher of community newspapers and magazines, and provides direct marketing services. In August 2007, Transcontinental agreed to pay $103.3 million for PLM Group Ltd., Canada’s fourth-largest commercial printer. PLM’s four facilities near Toronto specialize in direct marketing catalogs and flyers. Demand for direct marketing services like PLM’s is growing strongly, particularly as new “Do Not Call” rules could make it harder to contact potential customers through telemarketing....

THE WESTAIM CORP. $0.37 (Toronto symbol WED; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 94.1 million; Market cap: $34.8 million; SI Rating: Speculative) has two main subsidiaries: wholly owned iFire Technologies Corp. is developing a new, cheaper way to make flat-panel displays; 74.8%-owned Nucryst Pharmaceuticals Corp. (Toronto symbol NCS) makes medical products that prevent infection in burns and wounds. Based on current prices, Nucryst now accounts for $0.36 per Westaim share. Westaim was the technology development subsidiary of fertilizer producer Viridian Inc., a one-time recommendation of ours. In 1996, Viridian handed out its Westaim shares to its own shareholders as a special dividend. In the second quarter of 2007, Westaim’s losses fell to $0.08 a share from $0.13 a year earlier, thanks to a gain on sale of real estate. Revenue fell 4.3%, to $6.7 million from $7.0 million....