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FPI LTD. $7.85 earned $0.25 a share in the third quarter of 2006 compared with a loss of $0.35 a year earlier, thanks to cost controls and the extra earnings from recent acquisitions. However, sales fell 15.4%, to $174.5 million from $206.2 million, due to lower selling prices for fish products and the high Canadian dollar. Hold. FORDING CANADIAN COAL TRUST $24 has reorganized itself from an income trust into a royalty trust. The change removed restrictions on foreign ownership, and should increase Fording’s liquidity (the units also trade in New York). The new structure will not affect Fording’s current $3.80 annual distribution rate, which yields 15.8%. Buy. GENNUM CORP. $14 has gained over 40% in the past six months, mainly due to a new plan to improve customer service. The company also aims to expand its overseas sales. Gennum probably earned $0.55 a share in its fiscal year ended November 30, 2006. But profits could grow to $0.77 in fiscal 2007, and the stock trades at 18.2 times that figure. Buy....

AIC DIVERSIFIED CANADA FUND $46.74 (CWA Rating: Conservative) mainly holds shares of Canadian companies of average or above-average quality. It also holds stocks of some U.S. firms. The $1.7 billion fund’s 10 largest holdings are Power Financial, Canadian Oil Sands Trust, TD Bank, Shoppers Drug Mart, Loblaw, Thomson Corp., Brookfield Asset Management, Royal Bank, Manulife Financial and Royal Bank of Scotland. The fund holds just 23 stocks. The fund holds 47.8% of its assets in Financial services stocks. The rest of the portfolio breaks down as follows: Consumer staples, 19.4%; Energy, 8.6%; Consumer discretionary, 7.6%; and Health care, 5.5%....

AIC AMERICAN ADVANTAGE FUND $8.21 (CWA Rating: Aggressive) (AIC Group of Funds, 1375 Kerns Road, Burlington, Ont., L7R 4X8, 1-800-263-2144; Web site: www.aicfunds.com. Buy or sell through brokers) invests mostly in U.S. stocks, with over 99% of assets in the financial services area. This segment breaks down as follows: Investment banking & brokerage, 14.2%; Multi-line insurance, 13.5%; Property & casualty insurance companies, 12.9%; Life & health insurance, 12.6%; Diversified banks, 10.4%; Insurance brokers, 8.0%; Regional banks, 7.9%; Diversified financials, 7.3%; Wealth management, 6.1%; Consumer finance, 2.8%; Thrifts & mortgage finance, 2.3%; and Conglomerates, 1.2%. The $119.3 million AIC American Advantage’s top 10 holdings are Progressive Corp., ING Canada, AFLAC, Morgan Stanley, Hartford Financial Services, TD Bank, Northern Trust, Merrill Lynch, JP Morgan Chase and Willis Group Holdings. This fund holds just 18 stocks....

RIOCAN REAL ESTATE INVESTMENT TRUST $24.49 (Toronto symbol REI.UN; SI Rating: Average) is Canada’s largest REIT. RioCan has total assets of $4.5 billion consisting of ownership interests in a portfolio of 204 retail properties across Canada, including 8 under development. These properties contain over 50.7 million square feet of leasable area. RioCan is Canada’s largest owner of neighbourhood shopping centres. These are enclosed malls in smaller urban centres. But where it’s showing the strongest growth is as the largest owner of ‘New Format’ malls. These are in the suburbs of larger cities, and are made up largely of ‘Big Box’ stores with lots of parking and room for new building. RioCan’s revenue in the three months ended September 30, 2006 was $160.7 million, up 7.3% from $149.8 million a year earlier. Cash flow per unit rose 29%, to $0.40 from $0.31. Portfolio occupancy is at an all-time high of 97.5%. RioCan’s annual distribution of $1.32 gives it a current yield of 5.4%....

FORDING CANADIAN COAL TRUST $24.06 (Toronto symbol FDG.UN; SI Rating: Average) holds a 60% interest in Elk Valley Coal in B.C., the world’s second-largest supplier of metallurgical coal, a key ingredient in steelmaking. Elk Valley supplies approximately 21% of the global market. Fording has vast reserves of coal. Mining could continue at current rates for 25 years; with further development, its reserves could last 100 years. In the three months ended September 30, 2006, Fording’s revenues fell 20.8%, to $451.8 million from $570.8 million. Cash flow per unit fell 44.9%, to $0.92 from $1.67....

PEMBINA PIPELINE INCOME FUND $16.03 (Toronto symbol PIF.UN; SI Rating: Extra risk) has interests in 14 feeder pipeline systems with a total length of 8,350 kilometres. This includes the Pembina System, in operation since 1954. The company also holds a 50% interest in the Fort Saskatchewan Ethylene Storage Limited Partnership. Pembina’s total network is the largest feeder operation in Canada. These pipelines bring oil and gas from fields in northeastern B.C. and western and northern Alberta to refineries, or feed into major pipelines such as the Enbridge Pipeline System....

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....