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PENGROWTH ENERGY TRUST $19.42 (Toronto symbol PGF.B; SI Rating: Average) produces oil and gas in western Canada, as well as offshore Nova Scotia. In the three months ended September 30, 2006, Pengrowth’s revenue fell 5.5%, to $287.8 million from $304.5 million. However, cash flow per unit rose 8%, to $1.08 from $1.00. Pengrowth’s average daily production of 58,344 barrels of oil equivalent is weighted 44% toward oil and liquids, and 56% to natural gas. In the latest quarter, the company’s average realized price for oil was $72.61 U.S. and $6.29 U.S. for natural gas....

LEGACY HOTELS REIT $9.43 (Toronto symbol LGY.UN; SI Rating: Extra Risk) owns 25 luxury hotels with over 10,700 guestrooms in Canada and the United States, including The Fairmont Royal York in Toronto and the Fairmont Le Château Frontenac in Quebec City. In the three months ended September 30, 2006, Legacy’s revenues rose slightly, to $223 million from $221.6 million. Cash flow per unit rose 5.9%, to $0.36 from $0.34. Legacy’s Canadian hotels get about a third of their revenue from U.S. tourists. Proposed new rules that would force U.S. travelers to carry a passport could hurt its revenue. However, a drop in the Canadian dollar would cut the cost of travel for U.S. tourists, offsetting the passport requirement. Meanwhile, the trust should generate enough cash to maintain its $0.32 distribution, which yields 3.4%....

MOODY’S CORP. $70 (New York symbol MCO) has increased its dividend 14.3%, from $0.07 a share to $0.08. The new annual rate of $0.32 yields 0.5%. The stock fell below $50 in July 2006 on fears that rising interest rates would cut investor interest in new corporate debt securities, and hurt demand for Moody’s ratings. It has recovered as rates stabilized, but it’s expensive at 32 times earnings. Hold. GENERAL MILLS INC. $58 (New York symbol GIS) has raised its dividend for the fourth time in just over two years. The new rate of $1.48 yields 2.6%. The company also plans to buy back more of its stock in 2007. Buy. PHILIPS ELECTRONICS N.V. $37 (New York symbol PHG) hopes to capture a larger share of Asia’s mobile phone market, which could grow by 50% in 2007. It has licensed its brand to a Chinese company that will make low-cost phones under a five-year deal. Buy....

CONAGRA FOODS INC. $27 (New York symbol CAG; Income Portfolio, Consumer sector; WSSF Rating: Above average) makes a wide variety of frozen and packaged foods. Top brands include Chef Boyardee (pasta), Hunt’s (tomato sauce), Orville Redenbacher’s (popcorn) and Van Camp’s (beans). It also supplies ingredients to other food companies. In the past few years, ConAgra has sold its fresh and packaged meat and other non-core operations to focus on its more profitable packaged food businesses. ConAgra is now working to cut its costs with a new restructuring plan, including plant closures and streamlining its other operations. It will also sell more of its low-margin businesses....

DEL MONTE FOODS CO. $11 (New York symbol DLM; Aggressive Growth Portfolio, Consumer sector; WSSF Rating: Extra risk) makes a wide variety of canned fruit and vegetables. In December 2002, Del Monte acquired Heinz’s seafood, baby food, pet food and private label soup businesses. The company felt these operations would broaden its product line, and help it compete with larger food companies. However, some of the new operations did not perform as well as Del Monte hoped. As part of a new restructuring plan, Del Monte sold some of the slow-growth businesses like baby food and soups. It used the cash to expand its pet food operations....

H.J. HEINZ CO. $46 (New York symbol HNZ; Income Portfolio, Consumer sector; WSSF Rating: Above average) is one of the world’s largest producers of condiments and sauces, and accounts for 60% of ketchup sales in the United States. Other products include frozen meals, soups and baby foods. In September 2006, two nominees affiliated with billionaire investor Nelson Peltz became directors of the company after a lengthy proxy fight. Heinz has had six restructurings in the past 10 years, with moderate success. Peltz wants management to be more aggressive in cutting costs and expanding sales. It looks like the pressure is starting to work. In Heinz’s second fiscal quarter ended November 1, 2006, profits from continuing operations rose 20.4%, to $0.59 a share (total $197.4 million) from $0.49 a share ($168.3 million) a year earlier....

COMPTON PETROLEUM $11.69 (Toronto symbol CMT; SI Rating: Speculative) (403-237-9400; www.comptonpetroleum.com; Shares outstanding: 128.2 million; Market cap: $1.5 billion) produces oil and natural gas in Alberta. In the three months ended September 30, 2006, Compton’s revenue fell 13.9%, to $124.9 million from $145.1 million. Cash flow per share fell 19%, to $0.47 from $0.58. Compton’s average daily production rose 13.1% in the latest quarter, to 32,843 barrels of oil equivalent from 29,041 barrels. Production is weighted 28% toward crude oil and liquids and 72% natural gas....

OILEXCO INC. $6.76 (Toronto symbol OIL; SI Rating: Speculative) (403-262-5441; www.oilexco.com; Shares outstanding: 197.3 million; Market cap: $1.3 billion) is an oil and gas company focused on the UK North Sea. As some of the biggest pools of oil in the North Sea are depleted, most major oil and gas companies, such as British Petroleum and RoyalDutch/Shell, have withdrawn from actively exploring the region. However, they have left behind significant quantities of oil and natural gas. The UK government is now encouraging smaller companies such as Oilexco to explore and exploit those pools of oil and gas. Oilexco’s immediate promise now lies in the development of its 100%-owned Brenda and 70%-owned Nicol oil finds. Production from both fields is set to begin soon, with peak production rates expected to reach 35,000 barrels of oil per day....

ENDEV ENERGY INC. $1.19 (Toronto symbol ENE; SI Rating: Speculative) (1-888-739-4623; www.endevenergy.com; Shares outstanding: 88.9 million; Market cap: $105.8 million) explores for and develops oil and natural gas in central Alberta. In the three months ended September 30, 2006, Endev’s revenue fell 20.8%, to $14 million from $17.6 million. Cash flow per share fell 38.5%, to $0.08 from $0.13. Endev’s average daily output rose 11% in the latest quarter, to 3,746 barrels of oil equivalent from 3,376 barrels. In 2007, Endev plans to spend $40 million on exploration and development. It plans to raise output to around 4,300 barrels of oil equivalent....

GRAND PETROLEUM $3.75 (Toronto symbol GPP; SI Rating: Speculative) (403-231-8400; www.grandpetroleum.com; Shares outstanding: 24.0 million; Market cap: $89.9 million) explores for and develops oil and natural gas in central Alberta. It has also started drilling in southeast Saskatchewan. In the three months ended September 30, 2006, Grand’s revenue rose 16.6%, to $13.8 million from $11.8 million. Cash flow per share rose 11.1%, to $0.30 from $0.27. The company’s shares now trade for just 3.1 times cash flow. Grand’s average daily production rose 31.2% in the latest quarter, to 2,755 barrels of oil equivalent from 2,095 barrels. Production is weighted 67% toward crude oil and liquids and 33% natural gas....

SNC-LAVALIN GROUP INC. $32 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; SI Rating: Average) is one of the world’s leading design and engineering companies, with operations in over 100 countries. It specializes in large public works projects like bridges and water treatment systems. The company is also a leading builder of electrical power plants and transmission systems. The recent rise in energy prices is good news for SNC, since many utilities are now looking for ways to cut consumption of oil and natural gas. High oil prices have also spurred interest in nuclear power plants. Another way SNC should benefit from high oil is from more public transit. SNC has designed and built mass transit systems in some of the world’s biggest cities....

FINNING INTERNATIONAL INC. $45 (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; SI Rating: Above average) sells and leases Caterpillar brand heavy equipment to oil exploration, mining and forestry firms. The company’s operations in Western Canada supply 40% of its revenue. It also operates in South America (Argentina, Bolivia, Chile, and Uruguay) and the UK. In September 2006, Finning sold the materials handling operations of its UK division for $175 million. This business supplies forklifts and related machinery to warehouses and factories, and has struggled in the past few years. The company recorded a $32.7 million loss on the sale, but it should improve the long-term prospects of the remaining UK operations. Finning used the cash from the sale to pay down debt. Although the company had to pay a special charge on the early retirement of certain bonds ($0.07 a share), the move will cut its future interest expenses. Finning’s long-term debt now stands at 0.5 times equity, down from 0.6 times at the start of 2006....

SHAWCOR LTD. $25 (Toronto symbol SCL.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; SI Rating: Average) makes sealants that protect oil and natural gas pipelines from rust and other forms of corrosion. The company also inspects and repairs pipelines, and makes specialty cables and wires. In the three months ended September 30, 2006, ShawCor’s earnings from continuing operations fell 52.2%, to $0.22 a share (total $16.6 million) from $0.46 a share ($34.7 million) a year earlier. However, the drop was entirely due to one-time items. The latest quarter included a $5.4 million charge related to ShawCor’s decision to scale down its operations in Nigeria due to political instability. The year-earlier earnings included an unusual $18.4 million tax gain. Revenue grew just 2.6%, to $245.3 million from $239.2 million, due to the timing of several major contracts. The recent rise in oil prices has spurred strong demand for ShawCor’s products and services, and the start-up of new contracts should increase its fourth quarter revenues....

AGRIUM INC. $36 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; SI Rating: Average) is a leading producer of nitrogen, phosphate and potash fertilizers and crop protection products. It has 12 major production facilities in Canada and the United States, and one in Argentina that it operates through a joint venture. Sales to farmers and other agricultural customers account for the bulk of Agrium’s sales. The company also sells its products to industrial companies. For example, forest companies use Agrium’s chemicals in the production of wood resins. Agrium’s revenue grew from $2.1 billion in 2001 to $3.3 billion in 2005, or 12.0% compounded annually (all amounts except share price in U.S. dollars). It lost $0.06 a share (total $7.0 million) in 2001, but earnings rose to $2.11 a share ($283.0 million) in 2005. Cash flow per share rose from $1.07 in 2001 to $3.27 in 2005....

ANHEUSER - BUSCH COMPANIES INC. $47 (New York symbol BUD; Conservative Growth Portfolio, Consumer sector; WSSF Rating: Above average) is the world’s largest brewer. Leading brands include Budweiser, Michelob and Busch. Beer supplies 80% of its revenue. The other 20% comes from theme parks and aluminum can recycling. In the third quarter of 2006, earnings rose 26.2%, to $0.82 a share from $0.65 a year earlier. However, if you disregard the costs of a lawsuit settlement in the year-earlier quarter, profits grew 7.9%. Sales rose 4.9%, to $4.3 billion from $4.1 billion. The company has roughly half of the beer market in the United States. Due to slowing domestic beer sales, the company has expanded its international operations in the past few years. It owns half of Mexico’s largest brewer (Modelo) and 27% of China’s main brewer (Tsingtao). A new deal to distribute Budweiser in Paraguay, where beer sales are rising 10% a year, should also expand international sales....

MOLSON COORS BREWING CO. $70 (New York symbol TAP; Aggressive Growth Portfolio, Consumer sector; WSSF Rating: Average) took its present form in February 2005 through the merger of Adolph Coors Co. and Molson Inc., a Canadian brewer. It is now the world’s fifth-largest brewer by volume. Major brands include Molson Canadian, Coors Light and Carling. The two companies merged because they felt they were too small to compete effectively with global brewers that enjoy large economies of scale. The merged company’s main goal was to cut its annual costs by $175 million in the first three years. Molson Coors now feels it can save a further $75 million by the end of 2008. That would give it $250 million in annual savings. Thanks to these savings, Molson Coors earned $1.56 a share (total $135.8 million) in the third quarter ended September 24, 2006, up 23.8% from $1.26 a share ($108.2 million) a year earlier. These figures included special charges of $28.5 million in the most recent quarter, and $33.5 million in the year-earlier quarter. Sales grew 3.3%, to $1.58 billion from $1.53 billion....

HONDA MOTOR CO. LTD. ADRs $35 (New York symbol HMC; Conservative Growth Portfolio, Manufacturing & Industry sector; WSSF Rating: Above average) is the world’s seventh-largest carmaker. It also makes motorcycles as well as home and garden equipment like lawnmowers and snowblowers. Japan accounts for about a third of its sales. In its second fiscal quarter ended September 30, 2006, Honda’s earnings fell 9.2%, to $0.59 per ADR (total $1.09 billion) from $0.65 per ADR ($1.2 billion) a year earlier. (Each ADR represents one common share.)...

TOYOTA MOTOR CORP. ADRs $120 (New York symbol TM; Conservative Growth Portfolio, Manufacturing & Industry sector, WSSF Rating: Above average) is Japan’s largest carmaker. The company is gaining market share, and will likely overtake General Motors as the world’s largest carmaker in terms of vehicles produced within the next few months. Toyota operates plants in Japan, the United States and 21 other countries. Sales outside of Japan account for two-thirds of its revenue....

MCDONALD’S CORP. $42 (New York symbol MCD; Conservative Growth Portfolio, Consumer sector; WSSF Rating: Above average) operates over 30,000 fast-food restaurants in over 120 countries, which sell mainly hamburgers, chicken, french fries and soft drinks. Foreign operations account for two-thirds of its sales and one-third of its profit. The company’s revenue grew steadily, from $14.9 billion in 2001 to $20.5 billion in 2005. Profits fell from $1.36 a share (total $1.8 billion) in 2001 to $1.32 a share ($1.7 billion) in 2002, but rose to $1.97 a share ($2.5 billion) in 2005. Much of McDonald’s recent success stems from its plan to improve the quality of its food and service. It replaced its low-priced meals, which sparked a price war with competitors, with better quality food that generates higher profits for the company. It also added healthier foods, like salads and fruits....

LEGACY HOTELS REAL ESTATE TRUST $9.39 (Toronto symbol LGY.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; SI Rating: Extra risk) owns 23 luxury hotels in Canada, including the Fairmont Royal York in Toronto and the Fairmont Queen Elizabeth in Montreal. It also owns two U.S. hotels. In the third quarter of 2006, Legacy earned $19.8 million, up 15.1% from $17.2 million a year earlier. However, per-unit profits rose just 5.3%, to $0.20 from $0.19. That’s because the conversion of a Legacy debenture increased the number of units outstanding by 11%. Revenue crept up to $223.0 million from $221.6 million, as higher room rates offset a drop in occupancy. Legacy’s Canadian hotels get about a third of their revenue from U.S. tourists. Proposed new rules that would force U.S. travelers to carry a passport could hurt its revenue. However, a drop in the Canadian dollar would offset the passport requirement. Meanwhile, the trust should generate enough cash to maintain its $0.32 distribution, which yields 3.4%. Legacy may also profit by converting some hotels to condominiums....

RIOCAN REAL ESTATE INVESTMENT TRUST $25 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; SI Rating: Average) owns all or part of 203 large, outdoor suburban malls across Canada. In the three months ended September 30, 2006, RioCan earned $0.21 a unit from continuing operations, down slightly from $0.22 a year earlier, mainly due to higher interest and amortization expenses. However, cash flow per share rose 29.0%, to $0.40 from $0.31, while revenue grew 7.3%, to $160.7 million from $149.8 million. Demand by retailers for space in RioCan’s malls remains strong. In fact, the occupancy rate rose to 97.5% in the most recent quarter — a new record. National chains such as Wal-Mart and Loblaw account for 83% of RioCan’s rental revenue, which cuts RioCan’s risk....

PETRO-CANADA $50 (Toronto symbol PCA; Conservative Growth Portfolio, Resources sector; SI Rating: Average) operates major oil and natural gas projects in Western Canada and Newfoundland. Canada accounts for 75% of its total production. Petro-Canada has expanded its international presence in the past few years, and now gets 25% of its production from the North Sea, Algeria and Libya. Oil accounts for roughly two-thirds of total production, and natural gas accounts for the remaining third. It also operates refineries, and a nationwide chain of over 1,300 retail gas stations. In the third quarter of 2006, earnings before unusual items fell 8.1%, to $1.13 a share (total $564 million) from $1.23 a share ($638 million) a year earlier. The company had to shut down its Terra Nova offshore oil platform near Newfoundland for repairs, and production in the latest quarter fell 6%. (Petro-Canada owns 34% of Terra Nova and operates it.) However, higher oil prices raised cash flow per share 12.4%, to $2.17 from $1.93. Revenue grew 10.6%, to $5.2 billion from $4.7 billion....

ENCANA CORP. $57 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; SI Rating: Average) produces oil and natural gas, mostly in the western part of North America. Natural gas accounts for three-quarters of its production. In the past few years, the company has focused on unconventional gas reserves in the Rocky Mountains. These discoveries initially cost more to develop than conventional reserves. But they could last decades longer, particularly as new technology helps EnCana extract more gas. In fact, EnCana estimates that its unbooked reserves are 1.3 times the size of its proved reserves. The company also wants to expand its oil sands production 10-fold over the next decade, and a new partnership with U.S.-based ConocoPhillips should help it reach this goal with much less risk....

IMPERIAL OIL LTD. $42 (Toronto symbol IMO; Conservative Growth Portfolio, Resources sector; SI Rating: Average) is Canada’s largest oil company, with major operations in Alberta and the Northwest Territories. Oil accounts for over 70% of its production, while natural gas supplies the other 30%. Imperial also refines crude oil into gasoline and other petrochemicals, and operates over 2,000 gas stations under the “Esso” banner. ExxonMobil Corp. owns 69.6% of the stock. In the three months ended September 30, 2006, Imperial’s revenue fell 13.6% to $6.65 billion from $7.7 billion a year earlier. Overall oil production grew 12% due to rising output at its oil sands facilities, but conventional oil and natural gas volumes fell. Despite the lower revenue, income rose 31.3%, to $0.84 a share (total $822 million) from $0.64 a share ($652 million). That’s because the company earned higher profits from heavy oil and chemicals than from conventional oil and gas. Cash flow per share rose 60.9%, to $1.11 from $0.69. Imperial is Canada’s largest oil sands operator. It owns 25% of the massive Syncrude joint venture, and runs it. It also owns its own oil sands project at Cold Lake, Alberta. These operations accounted for 71% of its third quarter crude oil production....

MOLSON COORS CANADA INC. (Toronto symbols TPX.A $78 and TPX.B $81; Conservative Growth Portfolio, Consumer sector; SI Rating: Average) is a wholly owned subsidiary of Molson Coors Brewing Company (New York symbol TAP), which was formed in February 2005 through the merger of Molson Inc. and Adolph Coors Co. Its exchangeable shares are equivalent to common shares of the parent company. The families of the two founding companies control roughly 79% of the votes. Molson Coors is the world’s fifth-largest brewer by volume. Major brands include Molson Canadian, Coors Light and Carling. It sells its products in four of the world’s top eight beer markets: North America, Europe, Latin America and Asia. The main reason for the merger was economies of scale in an increasingly competitive industry. The new company set a goal to cut its annual costs by $175 million in the first three years (all amounts except share price in U.S. dollars). In 2005, it realized $59 million in savings, which exceeded its $50 million target....