acquisition

FEDEX CORP. $173 (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 283.8 million; Market cap: $49.1 billion; Price-to-sales ratio: 1.1; Dividend yield: 0.6%; TSINetwork Rating: Average; www.fedex.com) delivers packages and documents in the U.S. and 220 other countries through a fleet of 650 planes and 108,000 trucks and other ground vehicles. The company recently agreed to buy TNT Express NV, a Netherlands-based courier that operates throughout Europe. FedEx’s main rival, United Parcel Service (UPS), tried to buy TNT in 2012, but antitrust regulators rejected the deal because it would have given UPS too much of Europe’s courier market. Combined, FedEx and TNT would have about 17% of this business, so regulators will likely approve this purchase....

INTEL CORP. $32 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.7 billion; Market cap: $150.4 billion; Price-to-sales ratio: 2.7; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.intel.com) has purchased Recon Instruments, a privately held Vancouver firm that makes heads-up displays for sports goggles and other specialized eyewear. This is a small acquisition for Intel: the $175-million purchase price is just 9% of the $2.0 billion, or $0.41 a share, the chipmaker earned in the three months ended March 28, 2015. However, Recon’s technology will help Intel profit from rising sales of wearable devices, such as wristwatches that monitor heart rates and other biological data. Intel is a buy....

As it improves the performance of a big 2013 acquisition, ConAgra solidifies its position as one of our top stocks to buy in the U.S.

NYX Gaming Group Ltd., $4.32, symbol NYX on Toronto (Shares outstanding: 33.8 million; Market cap: $143.7 million; www.nyxgaminggroup.com), makes gaming software for over 130 online and brick-and-mortar casinos. The company is based in Guernsey (a tax haven off the coast of England), but its main subsidiaries are in the U.S., Sweden and Australia. NYX first sold shares to the public at $3.50 each and began trading on Toronto on December 30, 2014. The company has developed over 350 titles, including slots, bingo, lottery, poker and other casino games. It aims to create 25 to 50 new games a year. It also distributes 550 games under licence from other developers....

BANK OF NOVA SCOTIA $66.73 (Toronto symbol BNS; Shares outstanding: 1.2 billion; Market cap: $80.4 billion; TSINetwork Rating: Above Average; Dividend yield: 4.1%, www.scotiabank.com) is the third-largest of Canada’s five big banks, with $837.2 billion of assets.

In its fiscal 2015 second quarter, which ended April 30, 2015, Bank of Nova Scotia earned $1.74 billion, or $1.42 a share. That’s up 2.5% from $1.70 billion, or $1.39 a share, a year earlier. Revenue rose 3.7%, to $5.9 billion from $5.7 billion.

The bank set aside $448 million to cover potential bad loans in the latest quarter, up 19.5% from $375 million a year earlier. That’s mainly because it’s loaning more funds to consumers in Canada and Latin America.

...

ALGONQUIN POWER & UTILITIES CORP. $9.58 (Toronto symbol AQN; Shares outstanding: 238.9 million; Market cap: $2.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.9%; www.algonquinpower.com) has nearly tripled in size over the past three years through acquisitions. It plans to expand further with more purchases.

The company’s regulated utility businesses now provide water, electricity and natural gas to over 489,000 customers, up sharply from 120,000 three years ago. In addition, its hydroelectric, thermal energy, solar and wind facilities generate 1,150 megawatts, up from 460.

Emera (Toronto symbol EMA), a recommendation of The Successful Investor, our conservative growth advisory, owns 21.0% of Algonquin.

...

CONAGRA FOODS INC., $43.37, New York symbol CAG, jumped 11% on Friday on news that activist investment firm Jana Partners now owns 7.2% of the company. Jana will probably push ConAgra to sell or spin off its private-label food business. In January 2013, ConAgra paid $4.75 billion for Ralcorp Holdings, the largest private-label food maker in the U.S. However, strong competition has hurt its sales and earnings. As a result, ConAgra has had to writedown this investment by $2.1 billion. To put these figures in context, ConAgra’s market cap is $17.0 billion....

MITEL NETWORKS $11.29 (Toronto symbol MNW; TSINetwork Rating: Extra Risk) (613-592-2122; www.mitel.ca; Shares outstanding: 120.0 million; Market cap: $1.4 billion; No dividends paid) develops and markets products centred on business telephone systems, including technology that integrates land lines and mobile phones. The company also offers call centre and videoconferencing products. In the three months ended March 31, 2015, Mitel’s revenue rose 2.7%, to $248.1 million from $241.5 million a year ago (all figures except share price and market cap in U.S. dollars). Without the effect of the higher U.S. dollar, its revenue was $268.9 million in the latest quarter. Earnings per share fell 27.3%, to $0.16 from $0.22, as the stronger dollar hurt the contribution from the company’s international sales. However, the latest earnings still beat the consensus estimate of $0.15. Earlier this year, Mitel acquired Mavenir Systems for $560 million U.S....

LEON’S FURNITURE LTD. $15.18 (Toronto symbol LNF; TSINetwork Rating: Average) (416-243-7880; www.leons.ca; Shares outstanding: 71.1 million; Market cap: $1.1 billion; Dividend yield: 2.6%) has steadily opened new stores, growing from 27 in 2003 to 80 today. However, the company more than quadrupled in size overnight with its March 2013 purchase of its main rival, The Brick, for $700 million. The Brick has 220 locations across Canada; the chains continue to operate separately. In the three months ended March 31, 2015, the company’s sales fell slightly, to $423.0 million from $426.0 million a year earlier. On a same-store basis, sales declined 0.1%....

AGT FOOD & INGREDIENTS $32.17 (Toronto symbol AGT; TSINetwork Rating: Extra Risk) (306-525- 4490; www.alliancegrain.com; Shares outstanding: 23.1 million; Market cap: $755.8 million; Dividend yield: 1.9%) has bought the assets of West Central Road & Rail for $22 million. The acquisition includes five bulk-loading sites in Saskatchewan. Purchases like this are important because they help ensure that AGT can supply its manufacturing plants and continue its growth. AGT Food & Ingredients is still a buy....