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TD CANADIAN EQUITY FUND $32.56 (CWA Rating: Conservative) (TD Asset Management, P.O. Box 7500, Station A, Toronto, Ontario. M5W 1P9. 1-800-386-3757; Web site: www.tdcanadatrust.ca. No load — deal directly with the bank) uses a “bottom-up” approach (using fundamentals such as earnings, cash flow and low debt) to identify undervalued companies with strong growth potential. TD Canadian Equity Fund’s 10 largest holdings are Royal Bank, Suncor Energy, TD Bank, Rogers Communications, Canadian Natural Resources, Canadian Oil Sands Trust, Research in Motion, Schlumberger, Manulife Financial and Freeport McMoran. The $3.2 billion fund currently holds about 51.7% of its portfolio in Resources shares. It also has a bias towards Financial services stocks, with 18.8% of its holdings in that sector....

GENUINE PARTS CO. $49 (New York symbol GPC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 167.9 million; Market cap: $8.2 billion; WSSF Rating: Average) distributes automotive replacement parts to over 4,800 independent outlets in North America. The company also operates 1,100 stores under the NAPA banner. It also distributes industrial parts, office supplies and electrical equipment. The auto parts business supplies about half of the Genuine Parts’ revenue. However, most of the company’s recent growth has come from its industrial parts division, which accounts for 30% of total sales. In the three months ended September 30, 2007, sales of industrial parts rose 7%, while auto parts sales grew just 3%. Overall sales rose 3.7%, to $2.8 billion from $2.7 billion a year earlier. Earnings rose 7.0%, to $0.76 a share from $0.71 a share....

SNAP-ON INC. $48 (New York symbol SNA; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 57.6 million; Market cap: $2.8 billion; WSSF Rating: Average) makes and distributes hand and power tools and computerized diagnostic equipment for automotive mechanics. The company sells its products through a fleet of franchised vans that visit garages. Snap-On continues to make strong progress with its plan to cut costs and expand sales with new products and better customer service. The company is also selling some of its less profitable operations. In the third quarter of 2007, these initiatives cut Snap-On’s expenses by $7 million. That, plus an acquisition in late 2006, helped earnings grow 48.9% to $0.70 a share (total $41.1 million) from $0.47 a share ($27.6 million) a year earlier....

FAIR ISAAC CORP. $38 (New York symbol FIC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 55.4 million; Market cap: $2.1 billion; WSSF Rating: Average) makes software that helps banks and businesses calculate the likelihood that a borrower will pay back a loan. Its FICO credit scoring system is now an industry standard. The company also makes software that help businesses detect fraudulent transactions. In the fiscal year ended September 30, 2007, Fair Isaac’s revenue fell 0.4%, to $822.2 million from $825.4 million. Earnings grew 1.2%, to $104.7 million from $103.5 million in the prior year. However, per-share earnings jumped 14.5%, to $1.82 from $1.59. That’s because the company repurchased $451.1 million of its stock. Fair Isaac spent 8.6% of its revenue on research in fiscal 2007....

AUTODESK INC. $47 (Nasdaq symbol ADSK; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 231.7 million; Market cap: $10.9 billion; WSSF Rating: Average) makes AutoCAD, the world’s leading computer aided design program. AutoCAD helps engineers and architects design machinery and buildings, and supplies 90% of Autodesk’s revenue. The remaining 10% comes from software that filmmakers use to create special effects. Autodesk spends over 20% of its revenue on research. This helps it maintain its dominance in its niche markets. Heavy research spending is also helping Autodesk transform its software, from the traditional 2D models to 3D. That speeds up the design process and improves the quality of the final product or structure. Autodesk is also using acquisitions to strengthen its 3D expertise. In June 2007, it paid $29.1 million for UK-based 3D specialist NavisWorks....

SYMANTEC CORP. $18 (Nasdaq symbol SYMC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 867.3 million; Market cap: $15.6 billion; WSSF Rating: Average) makes software that helps protect computers from viruses and electronic attacks. Its best known product is the top-selling Norton Anti-Virus program. Symantec continues to cut its reliance on sales to consumers by increasing its corporate operations. Security products and services for businesses also give it steadier revenue streams than consumer software sales. As part of this strategy, Symantec recently acquired Altiris Inc. for $1.05 billion. Altiris’s products let computer administrators easily install and manage software across a wide variety of computers attached to a network....

ADOBE SYSTEMS INC. $42 (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 573.8 million; Market cap; $24.1 billion; WSSF Rating: Average) is best known for its Acrobat program, which lets users create electronic documents in the popular PDF format. However, Adobe gets nearly two-thirds of revenue from its Creative Solutions division, which help graphic designers create print publications and web pages. Adobe is starting to realize some of the benefits of its 2005 acquisition of Macromedia Inc., the developer of Flash. This program lets web page creators add animation and other features that make their sites easier to use. Popular sites such as YouTube use Flash to play videos and other content. Cellphones and other wireless devices that connect to the Internet represent a growing market for Flash. Adobe has licensed its mobile Flash technology to major cellphone makers such as Motorola and Samsung....

MICROSOFT CORP. $34 (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 9.4 billion; Market cap: $319.6 billion; WSSF Rating: Above average) is the world’s largest maker of computer software. Its flagship products, the Windows operating system and the Office suite of business programs, dominate their markets. Microsoft released its new Windows Vista operating system in early 2007. While initial sales were slow, strong sales of new computers (with pre-loaded copies of Vista) have helped spur demand. A planned upgrade to the Vista operating system should also convince more business users to switch. In its first fiscal quarter ended September 30, 2007, Microsoft’s sales rose 27.8%, to $13.8 billion from $10.8 billion a year earlier. Earnings grew 28.6%, to $0.45 a share (total $4.3 billion) from $0.35 a share ($3.5 billion). The company spends around 13% of its revenue on research....

THE STANLEY WORKS $51 (New York symbol SWK; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 82.2 million; Market cap: $4.2 billion; WSSF Rating: Average) makes a wide variety of hand and power tools for consumers and industrial users. In addition to the Stanley brand, the company’s best-known trademarks include Bostitch, Husky, Monarch, and Mac Tools. It sells its products through home improvement chains such as Home Depot and Lowe’s, and independent distributors. In the past few years, Stanley has spent $2 billion on acquisitions to shift its focus from consumer products to industrial products and building security systems, which have steadier revenue streams....

TERANET INCOME FUND $10 (Toronto symbol TF.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 155.0 million; Market cap: $1.6 billion; SI Rating: Speculative) manages Ontario’s electronic land registration system. Customers use its proprietary software, Teraview, to conduct electronic real estate registrations as well as title and writ searches. The Ontario government has granted Teranet an exclusive land registry access contract until March 2017. Teranet has also developed fraud prevention software for use by financial institutions and other mortgage lenders to lower the risks associated with mortgage and real estate transactions. In the three months ended September 30, 2007, Teranet’s revenues rose 11.8%, to $71.2 million from $63.6 million a year earlier, due to a rise in real estate and refinancing activity. Cash flow in the quarter grew 38.0%, to $0.27 a unit (total $41.2 million) from $0.20 a unit ($30.3 million)....

LINAMAR CORP. $21 (Toronto symbol LNR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 69.8 million; Market cap: $1.5 billion; SI Rating: Speculative) makes precision-machined components, assemblies and systems for the North American and European car and light to heavy truck markets. It focuses on the highly engineered systems of vehicles such as engines, transmissions, brakes, steering and suspensions. Linamar also owns Skyjack, which makes selfpropelled, scissor-type elevating work platforms. Strong demand for industrial equipment like this (about 25% of total sales) has helped Linamar offset slower sales of its auto parts. In the three months ended September 30, 2007, sales rose 10.1%, to $581.6 million from $528.1 million a year earlier. Earnings per share from ongoing operations rose 76.2%, to $0.37 from $0.21. The stock trades at 14.6 times its likely 2007 profit of $1.44 a share. The $0.24 dividend yields 1.1%....

METRO INC. $32 (Toronto symbol MRU.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 115.3 million; Market cap: $3.7 billion; SI Rating: Extra risk) is a major food retailer in Quebec. It operates 385 supermarkets under the Metro, Super C (discount supermarkets) and Marche Richelieu (neighbourhood stores) banners. It also operates 33 Loeb stores in northeastern Ontario. In 2005, Metro expanded further into Ontario with the acquisition of A&P Canada for $1.7 billion. A&P Canada operates 244 food stores throughout Ontario under the A&P, Dominion, Food Basics, The Barn and Ultra Food & Drug banners. In its third fiscal quarter ended July 7, 2007, Metro’s earnings rose 14.7%, to $0.78 a share (total $91.1 million) from $0.68 a share ($78.3 million) a year earlier. These figures exclude one-time items. Sales rose slightly, to $3.341 billion from $3.337 billion. If you disregard the sale of some operations in the year-earlier quarter, sales grew 3.2%....

INDIGO BOOKS & MUSIC INC. $15 (Toronto symbol IDG; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 24.6 million; Market cap: $369.0 million; SI Rating: Speculative) is the largest book retailer in Canada. It has 88 superstores under the Chapters, Indigo and the World’s Biggest Bookstore banners, and 158 small format stores, under the Coles, Indigo, SmithBooks and The Book Company names. Indigo’s sales in its second fiscal quarter ended September 29, 2007 rose 14.8%, to $209.2 million from $182.3 million a year earlier, due to strong demand for the final book in the Harry Potter series. That helped Indigo earn $0.13 a share in the quarter, compared with a loss of $0.04. The last three months of the year includes Christmas, and it’s the busiest period for the company. Indigo typically loses money in the other three quarters. Indigo plans to open eight new superstores over the next 18 months. Following a successful trial, Indigo also plans to add more toys to its superstores. These toys focus on the “edutainment” market — toys that offer both education and entertainment....

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 a federally regulated trust company. It 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 dipped as low as $34 in August due to concerns over rising mortgage default rates in the United States. However, Home Capital has no exposure to the U.S. mortgage market, and the stock quickly rebounded. Home Capital reports that revenues rose 33.6% in the three months ended September 30, 2007, to $94.3 million from $70.6 million. Total assets increased 27.0%, to $4.7 billion from $3.7 billion. Earnings per share rose 35.4% in the latest quarter, to $0.65 from $0.48. The $0.44 dividend yields 1.1%....

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%....