Adobe Inc.

TD SCIENCE & TECHNOLOGY FUND $15.37 (CWA Rating: Aggressive) (TD Asset Management, P.O. Box 7500, Station A, Toronto, Ontario. M5W1P9. 1-800-461-3863; Web site: www.tdcanadatrust.com. No load — deal directly with the company) invests mostly in U.S. firms. The fund’s gain over the last year was 7.8%. The Nasdaq index rose 6.5%. The $135.5 million fund’s manager is well-respected U.S. mutual fund manager T. Rowe Price Associates. Its MER is 2.79%. TD Science & Technology’s top holdings include: Microsoft, 5.1%; Juniper Networks, 3.0%; Samsung Electronics, 2.8%; Yahoo!, 2.8%; American Tower, 2.5%; Google, 2.5%; Hoya Corporation, 2.4%; Cisco Systems, 2.4%; Taiwan Semiconductor, 2.2%; and Adobe Systems, 2.1%. TD Science & Technology Fund is a buy for aggressive investors only....

AMERICAN WOODMARK $41.52 (Nasdaq symbol AMWD; SI Rating: Speculative) (540-665-9100; www.americanwoodmark.com; Shares outstanding: 15.7 million; Market cap: $650.2 million) is the third-largest maker of kitchen and bath cabinets in the U.S. The company offers more than 230 cabinet lines in a wide variety of designs, materials and finishes. It sells its products through a network of dealers and distributors and directly to home centers and major homebuilders. The company now operates 15 plants and 10 service centres across the U.S. In the three months ended October 31, 2006, revenues fell 1.7%, to $210.8 million from $214.5 million. However, earnings per share rose 54.1%, to $0.57 from $0.37. The lower revenues came from the company’s ongoing shift away from lower-profit products. The improved earnings were due to the shift to higher-profit products, and an improvement in profit margins as it continued to cut material and labor costs....

HEWLETT-PACKARD CO. $35 (New York symbol HPQ; Conservative Growth Portfolio, Manufacturing & Industry sector; WSSF Rating: Above average) is holding up well despite news that the company’s former chair used questionable surveillance techniques to identify a director who leaked certain information to the media. While embarrassing, we feel that the scandal will do little long-term damage to Hewlett’s business. Hewlett-Packard is a buy. NEWELL RUBBERMAID INC. $29 (New York symbol NWL; Income Portfolio, Consumer sector; WSSF Rating: Average) has agreed to sell its Little Tykes division, which makes children’s toys and furniture. The sale should generate a gain of between $15 million and $25 million; Newell earned $149.6 million or $0.54 a share before unusual items in its most recent quarter. The sale is part of Newell’s plan to sell less-profitable products, and focus on fastergrowing products such as office supplies....

ADOBE SYSTEMS INC. $36 (Nasdaq symbol ADBE; WSSF Rating: Average) makes software that helps users create electronic documents. Its main product is Acrobat, which let users convert documents to the popular PDF format. In December 2005, Adobe merged with Macromedia Inc. in an all-stock transaction valued at $3.4 billion. Macromedia’s main product is Flash, which lets Internet web page creators add animation and other features that make their sites easier to use. Like Acrobat, Flash is an industry standard. In Adobe’s first fiscal quarter ended March 3, 2006, it earned $0.32 a share (total $197.5 million) before restructuring and other unusual costs, up 23.1% from $0.26 a share ($133.8 million) a year earlier. Revenue grew 38.6%, to $655.5 million from $472.9 million....

Our recommendations in software stocks have delivered huge gains in the past few years. But many now face growing competition from free software on the Internet, or they trade at high p/e’s. Computer makers are also demanding lower prices for pre-installed programs to keep the costs of new computers down. We still hold a high opinion of these top software makers, but we advise against new buying right now. AUTODESK INC. $38 (Nasdaq symbol ADSK; WSSF Rating: Average) makes AutoCAD, the world’s top selling computer aided design program. About 4 million architects and engineers in over 100 countries use it to design and test new buildings and products. This business supplies nearly 90% of its revenue. The remainder comes from programs that filmmakers use to create special effects....