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CHEVRON CORP. $94 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2.1 billion; Market cap: $197.4 billion; WSSF Rating: Above average) has gained just 24% since January 2008. Oil is up 40% since then. In general, oil stocks have lagged because oil prices rise or fall in response to short-term changes in oil supply or demand, which can reverse overnight. Despite the recent gains, a slowing U.S. economy could spur a large drop in oil prices. We recommend conservative investors stick to industry leaders like Chevron. Its wide sources of revenue (production, refining and retail gas stations) helps shield it from volatile oil prices....

WYNDHAM WORLDWIDE $19.91 (New York symbol WYN; SI Rating: Extra risk) (973-753-6000; www.wyndhamworldwide.com; Shares outstanding: 177.0 million; Market cap: $3.5 billion) is one of the world’s largest hospitality companies. Wyndham Hotel Group has almost 6,540 franchised hotels and almost 550,600 hotel rooms worldwide. Wyndham’s RCI Global Vacation Network has 3.6 million members who have exchange access to over 67,000 vacation properties located in approximately 100 countries. Wyndham Vacation Ownership develops, markets and sells vacation ownership interests and provides consumer financing to owners through its network of approximately 145 vacation ownership resorts serving over 800,000 owners in North America, the Caribbean and the South Pacific. The company keeps reporting increased revenues and earnings, despite higher fuel prices and lower consumer confidence in the wake of the housing market slowdown. In the three months ended December 31, 2007, revenues rose 6.4%, to $1.03 billion from $970 million a year earlier. Earnings rose 13%, to $104 million from $92 million. Earnings per share rose 22.9%, to $0.59 from $0.48, on 7.8%fewer shares outstanding....

NOVA CHEMICALS CORP. $24 (Toronto symbol NCX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 83.1 million; Market cap: $2.0 billion; SI Rating: Extra risk) makes industrial plastics that manufacturers use to make a wide variety of products including auto parts, construction materials and packaging. Nova’s plant in Joffe, Alberta is the world’s largest producer of ethylene and polyethylene, and benefits from its proximity to Alberta’s large oil and gas reserves. The stock peaked at $43.70 in July 2007, but has dropped since due to fears that a slowing economy in the United States would hurt demand for its products. The U.S. accounts for roughly 45% of sales. Nova’s cyclical operations and exposure to volatile oil and gas prices adds risk. However, last year’s merger of its money-losing foam cup operations into a 50:50 joint venture cuts its costs....

AGRIUM INC. $72 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 158.0 million; Market cap: $11.4 billion; SI Rating: Average) is a leading producer of fertilizers and crop protection products. The company uses natural gas to make ammonia, the basic ingredient in fertilizers. Most of Agrium’s facilities are near large gas suppliers in Alberta, which helps keep its input costs down. Agrium will soon close its fertilizer plant in Kenai, Alaska, since it couldn’t find a reliable source of natural gas for the plant. The company looked into a plan to convert coal to natural gas. However, Agrium feels the project’s $2 billion U.S. cost is too expensive. It earned $3.25 U.S. a share (total $441 million U.S.) in 2007. Requests for more information from U.S. competition regulators have delayed Agrium’s planned $2.7 billion U.S. takeover of U.S.-based agricultural products distributor UAP Holding Corp. The addition of UAP will make Agrium the biggest agriculture retailer in North America. Selling seeds and other products to farmers also gives Agrium steadier revenue streams than bulk fertilizer sales....

GENNUM CORP. $9.05 (Toronto symbol GND; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 35.6 million; Market cap: $322.2 million; SI Rating: Above average) makes equipment that lets broadcasters store, manipulate and transport video signals without losing picture quality. This business accounts for 75% of Gennum’s total revenue. The company also makes chips for computer networks. Gennum recently completed a major realignment of its operations. It sold its slow-growing hearing aid and headset businesses, as well as part of its video chip operations. The company used the proceeds of around $25 million U.S. to finance its $25.3 million U.S. purchase of privately held Snowbush Microelectronics, a Toronto-based developer of technologies that help chip-makers improve the speed and reliability of data transmissions inside computers and other electronic devices. Snowbush’s expertise will help Gennum design better high-speed data and video chips....

NORTEL NETWORKS CORP. $7.26 (Toronto symbol NT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 437.2 million; Market cap: $3.2 billion; SI Rating: Speculative) is one of the world’s largest makers of telecommunications equipment. The company sells its products mainly to telephone companies, cable TV operators and large organizations. The telecom industry is highly competitive, and recent mergers among telecom equipment suppliers have driven down prices. The slowing economy has also prompted telephone companies and corporations to maintain their current networks instead of investing in new equipment. In 2007, Nortel lost $957 million or $1.98 a share (all amounts except share price and market cap in U.S. dollars). That figure included a $1.1 billion (pre-tax) non-cash writedown of a deferred tax asset. Excluding all one-time items, Nortel earned $0.37 a share in 2007. The company earned $28 million or $0.06 a share in 2006....

CGI GROUP INC. $12 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 323.6 million; Market cap: $3.9 billion; SI Rating: Speculative) is one of the largest independent information technology and business process services firms in North America. CGI provides day-to-day maintenance and improvement for clients’ business applications, and integrates and customizes technologies and software applications. The company also manages back-office business processes and transactions. North America accounts for over 90% of its revenue. CGI is a former subsidiary of BCE Inc., and BCE is its largest client at roughly 14% of total revenue....

SAPUTO INC. $29 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 205.8 million; Market cap: $6.0 billion; SI Rating: Average) is Canada’s largest producer of dairy products. It accounts for around 35% of Canada’s cheese production, and 25% of milk output. Major brands include Saputo, Armstrong, Stella and Dairyland. Canada supplies 60% of its total sales. The company is also one of the top five cheese producers in the United States, with roughly 5% of that market. Saputo’s U.S. businesses account for 30% of its sales. The remaining 10% of its sales come from dairy operations in the UK, Germany and Argentina. Heavy regulation limits expansion opportunities in Canada, so Saputo has focused on expanding its U.S. and international operations through acquisitions. That’s riskier than internal growth, but Saputo has a strong history of identifying operations that can benefit from its economies of scale and marketing expertise. The high Canadian dollar also makes foreign purchases more affordable....

MAPLE LEAF FOODS $13 (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 127.0 million; Market cap: $1.7 billion; SI Rating: Average) owns 88% of Canada Bread Company. This investment accounts for 91% of its market value....

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) gets 70% of its earnings from newspapers. This includes The Toronto Star, the biggest daily paper in Canada, and a top choice for advertisers. Torstar has expanded its Internet properties in the past few years, which helps cut its exposure to declining newspaper circulation. Torstar’s $0.74 a share dividend (4.4% yield) seems secure. The company could also unlock some of its value by spinning off its Harlequin book publishing subsidiary....

TEMPLETON EMERGING MARKETS FUND $20.55 (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 (58.9%), Europe (17.2%) and Latin America (23.9%)....

NEW GERMANY FUND $15.92 (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 $451 million fund’s 50 holdings are currently in Germany (93%) and the Netherlands (6%). The New Germany Fund’s focus on mid-tier German stocks provides investors with access to some of Germany’s fastest-growing companies. The New Germany Fund’s top holdings are K+S (chemicals), 6.9%; Fresenius (health care equipment & supplies), 5.6%; Q-Cells (solar cell manufacturing), 5.3%; European Aeronautical Defense (Dutchbased aerospace and defense), 4.7%; SGL Carbon (electrical equipment), 3.8%; GEA Group (chemicals), 3.7%; Solarworld (solar power manufacturing), 3.4%; IVG Immobilien (real estate), 3.2%; United Internet (Internet service provider), 3.1%; and Software (software), 3.0%....

KOREA FUND $24.05 (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 fund’s manager is RCM Asia Pacific. The fund’s top holdings are Samsung Electronics at 7.3%; Posco (steel), 7.0%; Hyundai Heavy Industries (shipbuilding), 6.6%; Shinhan Financial, 4.3%; GS Engineering and Construction, 3.4%; Shinsegae Co. Ltd. (investment and credit research), 3.3%; NHN Corporation (online media & web sites), 3.1%; Daewoo Shipbuilding & Marine, 3.1%; KT&G Corporation (cigarette maker), 3.0%; and LG Corporation (conglomerate), 2.9%. The industry exposure of the 38 stocks in the fund’s $832 million portfolio is as follows: Industrials, 37%; Financials, 16%; Information technology, 14%; Materials, 10%; Consumer staples, 6%; and Consumer discretionary, 5%....

CENTRAL EUROPE AND RUSSIA FUND $48.14 (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 $880.2 million fund’s 60 holdings are currently invested in Russia (55%), Poland (17%), Turkey (11%), Czech Republic (6%), Hungary (5%), Austria (2%) and Bermuda (1%). Central Europe and Russia Fund’s top holdings are Gazprom (a Russian gas utility) at 14.9%; Lukoil (Russian oil and gas), 6.3%; Norilsk Nickel (Russian metals and mining), 5.6%; Rosneft Oil Company (Russian oil and gas), 5.0%; Powszechna Kasa Oszczednosci (Polish bank), 4.6%; Sberbank (Russian bank), 4.6%; Bank Pekao (Polish bank), 3.6%; Telekomunikacja Polska (Polish telecom), 3.6%; and Turkiye Garanti Bankasa (Turkish bank), 2.8%....

ISHARES CDN REIT SECTOR INDEX FUND $13.65 (Toronto symbol XRE; buy or sell through a broker) holds the 12 Canadian real estate investment trusts (REITs) in the S&P/TSX Capped REIT Index. The weight of any one REIT in the value of the S&P/TSX Capped REIT Index is limited to 25%. RioCan REIT makes up 25% of the index’s value; H&R REIT, 15.1%; Canadian REIT, 9.4%; Boardwalk REIT, 8.9%; Calloway REIT, 8.1%; Canadian Apartment Properties REIT, 6.0%; Primaris Retail REIT, 6.0%; Chartwell Seniors Housing REIT, 5.0%; Innvest REIT, 4.2%; Cominar REIT, 4.3%; Extendicare REIT, 4.1%; and Dundee REIT, 2.7%. We’re glad to see that the top holding is RioCan, one of our favorite REITs. In fact, three of the top six holdings are among our recommendations. Note that iShares CDN REIT holds a couple of REITs we don’t recommend....

H&R REAL ESTATE INVESTMENT TRUST $19.90 (Toronto symbol HR.UN; SI Rating: Extra risk) holds interests in 35 office properties, 125 industrial properties and 141 retail properties. Over half are in the Greater Toronto Area. The rest are elsewhere in Ontario, in Quebec, western Canada and the U.S. The company now has an industry-leading portfolio occupancy rate of 99.7%. Revenue in the three months ended December 31, 2007 was $149.5 million, up 4.6% from $142.9 million a year earlier. Cash flow per unit rose 1.0%, to $0.431 from $0.427. H&R recently increased its annual distributions by 5.1%, to $1.44 from $1.37. Its units now yield 7.2%. H&R REIT is a buy.

CANADIAN REIT $27.71 (Toronto symbol REF.UN; SI Rating: Extra Risk) owns a portfolio of more than 140 income properties consisting of retail, industrial and office properties across Canada and in the Chicago, Illinois area. Occupancy is at 96.5%. CREIT’s revenue in the three months ended December 31, 2007 was $75.8 million, up 5.6% from $71.9 million a year earlier. Cash flow per unit rose 8.2%, to $0.53 from $0.49. The units yield 4.8%. 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 $21.43 (Toronto symbol REI.UN; SI Rating: Average) is Canada’s largest REIT. RioCan has ownership interests in a portfolio of 214 retail properties across Canada, including 14 under development. These properties contain over 55 million square feet of leasable area. Portfolio occupancy stands at 97.6%. RioCan’s revenue in the three months ended December 31, 2007 was $165.2 million, up 9.3% from $151.2 million a year earlier. Cash flow per unit rose 7.7%, to $0.42 from $0.39. RioCan’s annual distribution of $1.35 gives the units a yield of 6.3%. RioCan is still a buy.

IVY ENTERPRISE FUND $4.24 invests in small and medium-sized companies. The $160.4 million fund has an MER of 2.40%. The fund’s overall choice of stocks doesn’t inspire our confidence. Its top holdings are Richie Brothers Auctioneers, National Instruments, Resources Connection, Idexx Laboratories, Astral Media, Canadian Western Bank, Daktronics Inc., Henry Schein and Stratasys Inc. We think investors can do better by buying some of the other small-cap funds we recommend in Canadian Wealth Advisor....

IVY CANADIAN FUND $26.71 (CWA Rating: Conservative) invests in high-quality, large capitalization stocks. The $3.0 billion fund’s top holdings include Shoppers Drug Mart, TD Bank, Manulife Financial, Canadian National Railway, Becton Dickinson & Co., Enbridge, McDonald’s Corp., Thomson Corporation, Diageo plc and Walgreen Co. Ivy Canadian’s breakdown by industry is: Consumer staples, 29.3%; Financials, 17.5%; Consumer discretionary, 15.2%; Industrials, 11.7%; Health care, 6.6%; Energy, 5.6%; Information technology, 4.0%; and Utilities, 4.0%....

IVY EUROPEAN FUND $14.39 (CWA Rating: Aggressive) holds mostly good quality stocks, although it has underperformed the longer-term benchmark Morgan Stanley indexes. We don’t see any reason to hold a mutual fund that concentrates in Europe. If you want European exposure, consider Ivy Foreign Equity Fund (see above), or the closed-end EUROPEAN EQUITY FUND $11 (New York symbol EEA; CWA Fund Rating: Conservative). Ivy European Fund is a sell.

IVY FOREIGN EQUITY FUND $28.85 (CWA Rating: Conservative) outperformed the Morgan Stanley benchmark international index over the last 10 years. The fund gained 4.1%, and that was better than the Morgan Stanley benchmark’s gain of 1.7%. Ivy Foreign Equity Fund lost 11.6% over the last year. The fund invests in companies based outside of Canada, but cuts risk by avoiding direct investment in emerging markets. Ivy Foreign Equity is one of our top foreign fund recommendations. Still, we think non-U.S. international funds should make up at most 10% of the holdings of a conservative investor. The fund’s top holdings are Reckitt Benckiser plc (UK household & healthcare products), McDonald’s Corp., L’Oreal SA (French cosmetics), Becton Dickinson (U.S. medical technology), Nestle SA, Henry Schein Inc., (U.S. healthcare), PepsiCo (U.S. food & beverage), William Demant (hearing health products) and Diageo plc (UK alcoholic drinks)....

IVY GROWTH AND INCOME FUND $21.37 (CWA Rating: Conservative) (Mackenzie Financial Corp., 150 Bloor St. West, Toronto, Ont. M5S 3B5. 1-800-387-0780; Web site: www.mackenziefinancial.com. Load fund — available from brokers) is a balanced fund, holding a mixture of stocks, bonds and cash. The fund has returned 5.6% annually for the 10 years. It lost 6.6% over the last year. The fund’s MER is 2.10%. The fund’s top stock holdings are Shoppers Drug Mart, PepsiCo, Manulife Financial, Enbridge, Thomson Corp., McDonald’s Corp., Becton Dickinson (U.S. medical technology), Sun Life Financial, TD Bank, Walgreen Co. (U.S. pharmacies) and Diageo plc (UK alcoholic beverages). This $2.5 billion fund holds 24% of its assets in bonds. Interest rates on bonds are now under 5% annually in Canada. That’s the total return that a bond can provide, from today until it matures. However, bonds leave investors at the mercy of inflation, which shrinks the purchasing power of all fixed-return investments. In fact, an upsurge in inflation could wipe out all returns on bonds, and some of their principal besides....

POWER CORPORATION $34.10 (Toronto symbol POW; SI Rating: Above average) is a diversified holding company. Power Corp. 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 fourthlargest 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. In the three months ended December 31, 2007, Power Corp.'s earnings rose 21.1%, to $350 million or $0.70 a share, from $289 million or $0.57 a share. Great-West Lifeco contributed $250 million to Power Corp.'s earnings and IGM Financial contributed $87 million....

THE DUN & BRADSTREET CORP. $83 (New York symbol DNB; Conservative Growth Portfolio, Finance sector; Shares outstanding: 56.6 million; Market cap: $4.7 billion; WSSF Rating: Average) focuses on credit reports for individual companies, not bonds or asset-backed securities, so it’s less exposed to the problems in the mortgage industry than Moody’s or Standard & Poor’s. Dun & Bradstreet’s reports cover over 125 million companies in 200 countries. Clients use its products to make lending and buying decisions. The United States accounts for around 80% of its revenue. Corporate information accounts for 60% of Dun & Bradstreet’s revenue, and the slowdown in lending activity has hurt demand for its reports. The remaining 40% of its revenue comes from products and services that help clients expand sales and improve customer loyalty....