acquisition

LEON’S FURNITURE LTD. $14.25 (Toronto symbol LNF; TSINetwork Rating: Average) (416-243-7880; www.leons.ca; Shares outstanding: 71.5 million; Market cap: $1.0 billion; Dividend yield: 2.8%) has steadily increased its number of stores, from 27 in 2003 to 80 today. The company more than quadrupled in size overnight with the $700 million purchase of its main rival, The Brick, in March 2013. That chain has 221 locations across Canada and continues to operate separately. Leon’s plans to expand again: it’s taking over the leases on eight Sears Home stores, operated by money losing Sears Canada. It will convert those showrooms to Leon’s stores over the summer....

ALIMENTATION COUCHE-TARD $59.93 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couchetard. com; Shares outstanding: 567.4 million; Market cap: $34.6 billion; Dividend yield: 0.5%) operates 7,979 convenience stores throughout North America. In Europe, the company operates 2,218 stores across Scandinavia (Norway, Sweden and Denmark), Poland, the Baltic states (Estonia, Latvia and Lithuania) and Russia. In the three months ended January 31, 2016, Couche-Tard’s sales rose 2.5%, to $9.33 billion from $9.11 billion a year earlier (all figures except share price in U.S. dollars). Earnings, excluding one-time items, rose 4.2%. That’s a climb from $289.0 million, or $0.51 a share, to $301.0 million, or $0.53 a share....

LEON’S FURNITURE LTD. $14.25 (Toronto symbol LNF; TSINetwork Rating: Average) (416-243-7880; www.leons.ca; Shares outstanding: 71.5 million; Market cap: $1.0 billion; Dividend yield: 2.8%) has steadily increased its number of stores, from 27 in 2003 to 80 today. The company more than quadrupled in size overnight with the $700 million purchase of its main rival, The Brick, in March 2013. That chain has 221 locations across Canada and continues to operate separately. Leon’s plans to expand again: it’s taking over the leases on eight Sears Home stores, operated by money losing Sears Canada. It will convert those showrooms to Leon’s stores over the summer....

STANTEC INC. $30.47 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288; www.stantec.com; Shares outstanding: 94.4 million; Market cap: $2.8 billion; Dividend yield: 1.5%) continues to grow by acquisition. Its latest is Bury Inc., a 300-person building design firm based in Austin, Texas. Bury’s recent projects include the George W. Bush Presidential Library in Dallas, and the redevelopment of Arizona State University’s Tempe campus. Stantec cuts its costs by sharing administrative expenses, financing and employee benefits among its divisions. But continually buying new firms adds risk, including the risk of writedowns....

CHEMTRADE LOGISTICS INCOME FUND $17.46 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics .com; Units outstanding: 69.1 million; Market cap: $1.2 billion; Dividend yield: 6.9%) reports that in the three months ended December 31, 2015, its revenue rose 7.1%, to $335.7 million from $313.3 million a year earlier. The gain mainly came from the higher U.S. dollar, which increased the contribution from the trust’s operations in that country. Overall cash flow fell 23.5%, to $38.1 million from $49.8 million. Cash flow per share fell 28.6%, to $0.55 from $0.77, on more shares outstanding. The declines came from one-time maintenance expenditures and a $10.2 million benefits plan settlement gain a year ago. Chemtrade’s high distribution looks safe; it pays monthly distributions of $0.10 a unit, for a 6.9% yield....

WAJAX CORP. $16.85 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax.ca; Shares outstanding:20.0 million; Market cap: $335.9 million; Dividend yield: 5.9%) sells and services cranes, forklifts and other heavy equipment. It also provides related parts (such as ball bearings, motors, hoses and fittings) and power systems (including diesel engines and transmissions). The company’s customers are in the natural resource, construction, manufacturing and transportation industries. In the three months ended December 31, 2015, Wajax’s clients in mining and oil and gas made fewer purchases. As a result, revenue fell 16.0%, to $324.4 million from $386.1 million a year earlier. Earnings, excluding one-time items, declined sharply, to $4.0 million, or $0.20 a share, from $11.0 million, or $0.66....

WAJAX CORP. $16.85 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax.ca; Shares outstanding:20.0 million; Market cap: $335.9 million; Dividend yield: 5.9%) sells and services cranes, forklifts and other heavy equipment. It also provides related parts (such as ball bearings, motors, hoses and fittings) and power systems (including diesel engines and transmissions). The company’s customers are in the natural resource, construction, manufacturing and transportation industries. In the three months ended December 31, 2015, Wajax’s clients in mining and oil and gas made fewer purchases. As a result, revenue fell 16.0%, to $324.4 million from $386.1 million a year earlier. Earnings, excluding one-time items, declined sharply, to $4.0 million, or $0.20 a share, from $11.0 million, or $0.66....

Imperial Oil will focus on oil sands, refineries after selling 497 Esso stations–for double its 2015 earnings.

High Liner Foods Inc., $15.27, symbol HLF on Toronto (Shares outstanding: 30.9 million; Market cap: $483.8 million, www.highliner.com), processes and markets frozen seafood. The company was called National Sea Products before it changed its name in 1998. High Liner sells its products in grocery stores throughout the U.S., Canada and Mexico under the High Liner, Royal Sea, Fisher Boy, Mirabel and Sea Cuisine labels. It also sells food to restaurants and institutions under its High Liner, FPI and Icelandic Seafood brands. In addition, High Liner is a major supplier of private-label seafood to North American distributors and grocery stores. In the past few years, High Liner has steadily expanded its operations with acquisitions....

AMERICAN EXPRESS CO., $59.44, New York symbol AXP, rose 2% this week on speculation that WELLS FARGO &CO., $50.05, New York symbol WFC, will soon launch a takeover offer. Berkshire Hathaway (New York symbol BKB.B), the holding company controlled by billionaire investors Warren Buffett, owns 15.6% of American Express and 9.8% of Wells Fargo. An acquisition would enhance Wells Fargo’s credit card business and give it access to Amex’s high-quality clientele. In addition, the bank’s large depositor base provides a lower-cost way of funding credit card loans. Combining the two businesses would also allow Wells Fargo to eliminate overlapping operations....