Adobe Inc.

ALIMENTATION COUCHE-TARD, $25.54, symbol ATD.B on Toronto, is the largest convenience store operator in Canada, with over 2,000 outlets. It also has over 3,500 U.S. stores. The Canadian stores operate under the Couche-Tard and Mac’s banners, while the U.S. stores mainly use the Circle K brand. The fuel pumps at most stores provide 68% of the company’s sales. In the three months ended January 30, 2011, Couche-Tard’s earnings rose 29.6%, to $71.0 million, or $0.38 a share, from $54.8 million, or $0.29 a share, a year earlier (all figures except share prices in U.S. dollars). The latest earnings beat the consensus estimate of $0.37 a share. Revenue rose 13.7%, to $5.6 billion from $4.9 billion. Same-store merchandise sales climbed 3.9% in the U.S., and 0.4% in Canada. U.S. sales make up 77.9% of total sales....

Nokia (ADR), $10.70, symbol NOK on New York (ADRs outstanding: 3.7 billion; Market cap: $39.7 billion; www.nokia.com), is the world’s largest mobile-phone maker. It also makes wireless communication equipment, and invests in technology-related start-up companies. Nokia’s sales should rise as major world economies recover, especially the U.S. and, eventually, Europe. Meanwhile, the company continues to report strong cash flow. It can use these funds for research, share buybacks, dividends or acquisitions. Nokia has a new CEO, Stephen Elop, who joined the company late last year. He was previously head of Microsoft’s business division. Before that, he was chief operating officer of Juniper Networks, and president of worldwide field operations at Adobe Systems....

Adobe Systems Inc. (Nasdaq symbol ADBE) makes software that lets computer users create, edit and share documents in the popular PDF format. As well, graphic designers use Adobe’s software to create print publications and web pages. The company also makes Adobe Flash, which lets web site developers make web pages more interactive by adding animation and video. Computer users can download Adobe’s Flash Player viewer for free. We analyze Adobe in our Stock Pickers Digest and Wall Street Stock Forecaster newsletters....

SYMANTEC CORP. $17.15 (Nasdaq symbol SYMC; SI Rating: Average) (1-408-517-8000; www.symantec.com; Shares outstanding: 789.3 million; Market cap: $13.5 billion; No dividends paid) makes software that protects computers from viruses and intruders. The popular Norton anti-virus program is its best-known consumer product. It also sells a range of products and services to businesses, including software and services for data backup and protection, as well as data-archiving to meet increasingly strict regulatory and compliance regulations. In the three months ended October 1, 2010, Symantec earned $266 million, or $0.34 a share. That’s down 10.1% from $296 million, or $0.36 a share, a year earlier. These figures exclude one-time items, such as the cost of integrating companies Symantec bought. Revenue was flat at $1.5 billion. Corporate customers account for two-thirds of Symantec’s revenue. The uncertain economy is prompting some of its clients to hold off on buying new software....

Akamai Technologies Inc., $48.65, symbol AKAM on Nasdaq (Shares outstanding: 181.6 million; Market cap: $8.8 billion), helps companies improve the performance of their web sites. (Akamai is a Hawaiian word meaning “smart”.) The company’s customers include Amazon.com, Adobe Systems, Apple, Microsoft and Yahoo. Akamai mirrors a customer’s web site onto its own network of servers, which are located in over 70 countries. That speeds up download times and cuts the risk of Internet outages or slowdowns, because users can access the closest server, or the one with the fastest connection. Demand for Akamai’s services continues to rise, particularly as more people use the Internet to view videos. The company gets 28% of its revenue from customers outside of the U.S....

ADOBE SYSTEMS INC. $27.71 (Nasdaq symbol ADBE; SI Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 525.2 million; Market cap: $14.6 billion) earned $284 million, or $0.54 a share, in the three months ended September 3, 2010. That’s up 52.6% from $186.1 million, or $0.35 a share, a year earlier. Revenue rose 42.0%, to a record $990.3 million from $697.5 million The gains were largely due to strong sales of Adobe’s Creative Suite 5, which it launched in April 2010. Creative Suite 5, which accounts for about 55% of Adobe’s revenue, is a package of photo-editing and desktop-publishing programs. However, the software maker warned that the weaker economy could slow Creative Suite 5’s sales growth in the current quarter....

ADOBE SYSTEMS INC., $26.99, Nasdaq symbol ADBE, jumped as high as $28.90 a share this week on reports that MICROSOFT CORP., $24.24, Nasdaq symbol MSFT, may launch a takeover offer for the company. A merger could help Microsoft compete in the fast-growing field of software for smartphones. Right now, Apple’s iPhone and phones powered by the free Android system, which is made by Internet-search provider Google Inc., dominate this market. Microsoft hopes to improve its market share with its upcoming Windows Phone 7 operating system. Adding Adobe’s Flash video software could give Windows Phone 7 an advantage over Apple and Android phones. As well, Adobe’s products could help Microsoft develop new software for touch-screen tablet computers....

FORTRESS PAPER, $42.27, symbol FTP on Toronto, has entered into agreements to supply dissolving pulp to two companies that make rayon products in China. Dissolving pulp is a type of cellulose mainly used in products made of rayon, including clothing. This fibre has strong growth prospects, particularly in warmer regions with growing economies, such as Asia and South America. Fortress will begin supplying dissolving pulp from its specialty cellulose mill in Quebec in the third quarter of 2011. This mill, which should start up in mid-2011, is expected to be able to produce more than 200,000 air-dried metric tons of dissolving pulp per year....

ADOBE SYSTEMS INC., $26.88, Nasdaq symbol ADBE, reported record-high quarterly revenue and stronger-than-expected earnings this week. However, the software maker warned that its earnings in the current quarter will be hurt by slowing sales of its Creative Suite 5 software package to U.S. schools. The weak Japanese economy is also hurting demand for this product. The warning caused the stock to fall 19%. Creative Suite 5, which accounts for about 55% of Adobe’s revenue, is a package of photo-editing and desktop-publishing programs....

BAFFINLAND IRON MINES, $1.03, symbol BIM on Toronto, is the subject of a hostile, $274.3-million takeover offer from Nunavut Iron Ore Acquisition Inc., which is wholly owned by privately held Iron Ore Holdings, LP. Nunavut is offering $0.80 in cash for each share of Baffinland. The company currently owns about 6% of Baffinland. Other shareholders who hold a combined 9.3% stake in Baffinland have also agreed to tender their shares to the offer. Baffinland is now trading at $1.03, or 28.8% above Nunavut’s bid. This indicates that investors expect a much higher bid from Nunavut or another buyer....