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DUNDEE CORP. $14 (Toronto symbol DC.A; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 75.6 million; Market cap: $1.1 billion; SI Rating: Average) is a holding company with subsidiaries in three main areas: wealth management, real estate and resources. Its main asset is its 45% stake (59% voting interest) in DundeeWealth Inc., which offers wealth management services and owns the Dynamic family of mutual funds. Dundee recently reorganized its wealth management operations. It sold Dundee Bank of Canada, a Schedule I Chartered Bank, to Bank of Nova Scotia for $260 million. Scotiabank also purchased $348.3 million of non-voting shares in DundeeWealth, which gave it an 18% economic interest. Thanks mainly to gains from asset sales, Dundee’s earnings from continuing operations in 2007 jumped to $3.49 a share (total $277.6 million) from $1.19 a share ($98.6 million) in 2006. Revenue rose 27.3%, to $1.4 billion from $1.1 billion. The market value of the company’s investment portfolio, excluding its consolidated subsidiaries, was $5.33 per Dundee share at December 31, 2007....

HOME CAPITAL GROUP INC. $41 (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 34.5 million; Market cap: $1.4 billion; SI Rating: Extra risk) is the parent company of Home Trust Company, a federally regulated trust company that specializes in residential first mortgages to small business owners, the self-employed and others who don’t meet the stricter criteria of larger, traditional lenders. The stock fell to $30 in January 2008, mostly due to the ongoing writedowns of U.S. subprime residential mortgages by other lenders. However, Home Capital has no exposure to the U.S. Its conservative lending policies have also helped keep its credit losses down. In the three months ended March 31, 2008, earnings rose 18.0%, to $0.72 a share from $0.61 a year earlier. If you exclude a loss on the sale of an investment, earnings in the latest quarter would have grown 27.9%, to $0.78 a share. Revenue rose 30.7%, to $106.8 million from $81.7 million....

PENGROWTH ENERGY TRUST $20 (Toronto symbol PGF.UN; Aggressive Growth Portfolio, Resources sector; Units outstanding: 247.9 million; Market cap: $5.0 billion; SI Rating: Average) is one of North America’s largest energy royalty trusts. Pengrowth produces oil and natural gas from properties in Alberta, British Columbia and Saskatchewan. It also owns 8.4% of the Sable Offshore Energy Project, which extracts natural gas from several fields south of Nova Scotia. Natural gas accounts for roughly 60% of Pengrowth’s production, while oil supplies the remaining 40%. Pengrowth focuses mainly on high quality, mature properties that give it plenty of steady cash flows. In the past three years, it has acquired properties that have increased its reserves by 45% and its production by 63%. Based on current production levels, Pengrowth’s reserves should last at least 10 years. Pengrowth uses hedging contracts to lock-in selling prices and stabilize its cash flows. Due to the sharp rise in oil prices in the past few months, Pengrowth had to write down the value of these contracts. Unrealized foreign exchange losses have also weighed on its profits....

PRECISION DRILLING TRUST $28 (Toronto symbol PD.UN; Aggressive Growth Portfolio, Resources sector; Units outstanding: 125.8 million; Market cap: $3.5 billion; SI Rating: Extra risk) is the largest contract driller in Canada. It operates 231 drilling rigs, 223 well servicing rigs and a rental and production services division. It also operates 14 drilling rigs in the United States, and one rig in Latin America. In the past year, lower natural gas prices and increasing royalty payments have hurt demand for Precision’s rigs and services in its core markets in Western Canada. In the three months ended March 31, 2008, Canadian drilling rig utilization fell to 50.0% from 53.3% a year earlier, and prices fell 11%. However, that’s partly because Precision continues to avoid low-margin contracts. Earnings in the first quarter fell 33.3%, to $0.84 a unit from $1.26. Cash flow per unit declined 66.3%, to $0.28 from $0.83, while revenue fell 16.5%, to $342.7 million from $410.5 million....

FORDING CANADIAN COAL TRUST $71 (Toronto symbol FDG.UN; Aggressive Growth Portfolio, Resources sector; Units outstanding: 148.7 million; Market cap: $10.6 billion; SI Rating: Average) is one of the world’s leading producers of metallurgical coal, a key ingredient in steelmaking. It came into existence as part of the break-up in October 2001 of the old Canadian Pacific holding company, rather than a new issue from a broker. Fording’s reserves should last 25 years at current production rates. Fording’s main asset is its 60% stake in the Elk Valley Coal Partnership, which operates six coal mines in British Columbia and Alberta. Teck Cominco owns the remaining 40% of Elk Valley, and operates the partnership. Teck also owns 19.95% of Fording’s units, which gives it an effective 52% stake in Elk Valley. In the first quarter of 2008, Fording’s earnings before unusual items fell 45.8%, to $0.26 a unit from $0.48 a year earlier. Cash flow per share fell 28.3%, to $0.38 from $0.53. Sales fell 5.3%, to $332.0 million from $350.5 million. Lower coal prices offset a 22% jump in production. Fording sells its coal in U.S. dollars, so it’s also vulnerable to the rising Canadian dollar....

ENCANA CORP. $91 (Toronto symbol ECA)differs from the typical spinoff in that the two portions are of comparable size. More often, the spinoff company is much smaller than the parent. But the principle is the same. The management is breaking up the company into two or more parts, despite the fact that this works against management’s interests, by reducing the assets to manage. Good managers do this for two reasons. First, they aim to serve shareholders’ interests. Second, the two companies generally experience an increase in stock values and/or a speedup in growth, which generally lead to higher pay for management. Of course managers sometimes negate the value of the spinoff or corporate breakup by taking huge bonuses for themselves, for arranging it. But that’s not happening at EnCana....

RioCan Real Estate Investment Trust $22 (Toronto symbol REI.UN Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 212.0 million; Market cap: $4.7 billion; SI Rating: Average) is Canada’s largest real estate investment trust. It owns 214 retail properties, including 12 under development, comprising an aggregate of almost 55 million square feet. RioCan specializes in “New Format” shopping centres. These are large, outdoor malls made up of “Big Box” stores in the suburbs of larger cities. They feature plenty of room for parking and future expansion. RioCan also operates smaller outdoor shopping centres, as well as enclosed malls in urban areas. The trust’s revenue rose from $474.5 million in 2003 to $719.9 million in 2007. Its earnings fell from $1.03 a unit (total $174.4 million) in 2003 to $0.69 a unit ($134.9 million) in 2005, but rose to $0.83 a unit ($163.8 million) in 2006. In 2007, a non-cash charge of $144 million related to changes in the way Ottawa taxes REITs cut earnings to $0.16 a unit ($32.4 million). If you exclude this adjustment, RioCan would have earned$0.85 a unit in 2007. Cash flow per unit grew from $1.26 in 2003 to $1.51 in 2007....

SCOTIA CANADIAN GROWTH FUND $67.62 (CWA Rating: Conservative) (Scotia Securities, 40 King Street West, 6th Floor, Toronto, Ontario M5H 1H1. 1-800-268-9 269; Website: www.scotiabank.com. No load — deal directly with the company.) uses fundamental analysis to identify what the managers see as investments that have the potential for above-average growth. The $579.2 million Scotia Canadian Growth Fund’s largest stock holdings include Manulife, Royal Bank, TD Bank, Research in Motion, Potash Corp., Suncor Energy, Bank of Nova Scotia and EnCana Corp. Scotia Canadian Growth currently holds 33.8% of its portfolio in the Resources sector. Its next-largest holding is Financial services at 28.9%....

JAPAN SMALLER CAP FUND $9.27 (New York symbol JOF; CWA Rating: Aggressive) invests mainly in less-widely-followed Japanese over-the-counter stocks. The fund has recently increased its holdings of service-sector firms, as well as financial services stocks. The fund’s top holdings are Jupiter Telecom, Mirai Industry Co., Nagase & Company, Tokai Rubber, Futuba Industrial, Aeon Delight, Disco Corp., Kansai Urban Banking, Shimamura Co. and Hisamitsu Pharmaceutical. Japan Smaller Cap Fund sells for a 4% discount to the current value of its assets....

JAPAN EQUITY FUND $7.39 (New York symbol JEQ; CWA Rating: Aggressive) invests mostly in large capitalization stocks on the Tokyo Stock Exchange. Lately, the fund has added to its holdings of firms selling to emerging markets, to offset exposure to the slowing U.S. economy. It has also upped its holdings of Japanese financial stocks. These have limited exposure to subprime-related securities. The Japan Equity Fund’s top holdings include: Toyota Motor, Mitsubishi UFJ Financial Group, Mizuho Financial, Sony Corp., Denso Corporation, Mitsubishi Corp., Canon, East Japan Railway, Komatsu Ltd. and Takeda Pharmaceutical Co. Japan Equity Fund is available for 9% less than the current value of its assets. Our long-standing advice is that you only buy closed-end funds trading at close to or below net asset value. It’s a buy.

FIDELITY FOCUS TECHNOLOGY FUND $8.81 (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, Nintendo, Apple Computer, Nokia, Qualcomm, Google, Hewlett-Packard, Intel, Oracle Corporation and Microsoft....

FIDELITY FOCUS FINANCIAL SERVICES FUND $19.30 (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 U.S. and UK stocks than in the past. Geographically, its holdings are allocated: the U.S., 41.8%; the UK, 11.6%; Japan, 9.0%; France, 8.4%; Germany, 7.6%; Switzerland, 5.3%; Sweden, 4.1%; Norway, 4.1% Italy, 3.0%; and Brazil, 2.9%. The top holdings of this $59.9 million fund are Bank of New York Mellon, American International Group, Munich Reinsurance, Mitsubishi UFJ Financial Group, Banca Intesa Sanpaolo, AXA, Assicurazioni Generali, Unicredito Italiano, Allianz and Sumitomo Mitsui Financial Group....

FIDELITY FOCUS CONSUMER INDUSTRIES FUND $17.03 (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, DaimlerChrysler, Japan Tobacco and Imperial Tobacco. The $6.5 million fund is broken down by industry as follows: 12.3% in Food products, 11.5% in Media, 10.4% in Food & staples retailing, 10.2% in Household products and 10% in Beverages....

TD SCIENCE & TECHNOLOGY FUND $13.49 (CWA Rating: Aggressive) (TD Asset Management, P.O. Box 7500, Station A, Toronto, Ontario. M5W1P9. 1-800-386-375 7; 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, IBM, Corning Inc., Nintendo Co., Oracle Corp., Samsung Electronics, Nokia, Intel and Apple Inc. The fund’s loss in Canadian dollars over the last year was 15.8%. The Nasdaq index lost 16.1% in Canadian funds. The $90.5 million fund’s manager is well-respected U.S. mutual fund manager T. Rowe Price Associates. Its MER is 2.70%....

ALTAMIRA SCIENCE & TECHNOLOGY FUND $8.13 (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 Apple, Microsoft, Yahoo!, Nokia, Intel, Microchip Technology, Google, Research in Motion and Cisco Systems. The $52.5 million fund lost 7.2% in Canadian dollars over the last year. The Nasdaq index lost 16.1% in Canadian funds. The fund’s MER is 2.70%....

BANK OF NOVA SCOTIA $47.82 (Toronto symbol BNS: SI Rating: Above average) is the second-largest of Canada’s five big banks, with assets of $449.4 billion. It has 1,000 branches in Canada. In the three months ended January 31, 2008, Bank of Nova Scotia earned $835 million or $0.82 a share, down 18.1% from $1.02 billion or $1.01 a share a year earlier. The latest earnings included $238 million in pre-tax writedowns and other charges. Without those charges, the bank would have earned about $1.00 a share. Revenue fell 9.7%, to $2.8 billion from $3.1 billion. The bank’s shares currently yield 3.8%. Bank of Nova Scotia has among the lowest remaining exposure to writedowns of asset-backed securities among Canadian banks. Future writedowns are likely to be minimal. Lower interest rates should spur demand for new loans. The bank is also doing a good job controlling non-interest costs....

SUN LIFE FINANCIAL $48.69 (Toronto symbol SLF; SI Rating: Above-average) offers savings, retirement, pension and life and health insurance products and services to individuals and corporations. The company has assets under administration of $425.3 billion....

GREAT-WEST LIFECO $31.29 (Toronto symbol GWO; SI Rating: Above-average) is a leading Canadian insurance company. As well, it provides wealth management and other financial services. Great-West also operates in the U.S. and Europe. The 2007 purchase of Putnam Investments Trust for $3.9 billion doubled its assets under administration, to $394 billion....

MANULIFE FINANCIAL $39.37 (Toronto symbol MFC; SI Rating: Above-average) sells life and other forms of insurance, as well as mutual funds and investment management services. It operates in 19 countries and territories worldwide. Manulife has assets under administration of $396.3 billion....

AT&T INC. $39 (New York symbol T; Income Portfolio, Utilities sector; Shares outstanding: 6.0 billion; Market cap: $234.0 billion; WSSF Rating: Average) provides traditional local and long-distance services to over 61 million customers in 22 states. It also has 70 million wireless subscribers nationwide, and 14.2 million high-speed Internet customers. AT&T recently paid $6.6 billion for 700-MHz wireless spectrum licenses in a government auction. That’s equal to 39% of the $17.0 billion or $2.76 a share it earned in 2007. These airwaves can travel longer distances and penetrate thicker walls than regular 1,900-MHz cellular frequencies. That means AT&T needs fewer towers to cover the same area. The new spectrum will help the company take advantage of growing consumer and business demand for faster wireless downloads. New wireless services should generate higher profits for AT&T than regular voice calls....

VERIZON COMMUNICATIONS INC. $36 (New York symbol VZ; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 2.9 billion; Market cap: $104.4 billion; WSSF Rating: Average) has over 140 million traditional phone customers in 28 states. It also has 59 million wireless service customers in 50 states. Subsidiary Verizon Wireless paid $9.4 billion for its 700-MHz spectrum licenses. Verizon owns 55% of this business, so its share of the purchase works out to $5.2 billion. That’s equal to 75% of its 2007 earnings of $6.9 billion or $2.37 a share. Verizon is starting to enjoy the benefits of its FiOS (Fiber-Optic Service) project, which gives customers a bundle of TV signals and other services. FiOS now has over one million subscribers, which makes it the 10th-largest cable provider in the United States....

MTS SYSTEMS CORP. $32 (Nasdaq symbol MTSC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 17.5 million; Market cap: $560.0 million; WSSF Rating: Average) makes equipment and software that carmakers and other manufacturers use to test the mechanical behavior of materials, machines and structures. This helps them reduce production errors and costs. Testing systems provide 80% of MTS’s revenue. The company also makes sensors that improve the performance of automated industrial machinery. MTS operates in a narrow field and gets most of its revenue from customers in cyclical industries, such as automotive and aerospace. That makes it riskier than Genuine Parts and Snap-On. MTS spends around 5% of its revenue of $24 a share on research. That helps it maintain its leading share of its niche markets. Overseas markets also supply two-thirds of its revenue, which cuts its exposure to the struggling North American auto industry....

SNAP-ON INC. $55 (New York symbol SNA; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 57.6 million; Market cap: $3.2 billion; WSSF Rating: Average) makes hand and power tools for auto mechanics. The company distributes its products through a fleet of franchised vans that visit garages and service shops. This way, dealers can build long-term relationships with their customers. This business supplies 35% of Snap-On’s total revenue. The company also makes tools and equipment for non-automotive customers, including the construction, electrical and agricultural industries (40% of revenue). Most of the remaining 25% of Snap-On’s revenue comes from computerized diagnostic equipment and software. This business includes Snap-On’s 2006 acquisition of the Business Solutions division of ProQuest Co., which helps car dealers electronically access information about auto parts, warranties and service bulletins. These services help over 35,000 car dealers improve their billing and inventory management systems....

GENUINE PARTS CO. $42 (New York symbol GPC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 165.3 million: Market cap: $6.9 billion; WSSF Rating: Average) distributes automotive replacement parts to over 4,800 independent outlets in North America. It also operates 1,100 retail stores under the NAPA banner. Automotive parts supply nearly half of its revenue and earnings. Genuine Parts also distributes industrial replacement parts (30% of revenue), office products (15%) and electrical equipment and supplies (5%). Most of Genuine Parts’ recent growth has come from its industrial and electrical businesses. Many North American plant operators are investing in automated production equipment, which helps cut their operating costs. Expanding sales at these businesses also help cut Genuine Parts reliance on auto parts for growth....

BECKMAN COULTER INC. $64 (New York symbol BEC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 62.7 million; market cap: $4.0 billion; WSSF Rating: Average) makes lab equipment that doctors and medical researchers use to detect substances in bodily fluids. The company sells most of its products to big hospitals and research laboratories. It has now installed more than 200,000 of its systems in over 130 countries. Beckman’s products aim to simplify and speed up complex tests. In fact, some of these systems can process over 1,400 chemical tests an hour. More timely and accurate information leads to faster treatment and can reduce a patient’s hospital stay....