boeing

Héroux-Devtek Inc., $12.74, symbol HRX on Toronto (Shares outstanding: 30.8 million; Market cap: $392.4 million; www.herouxdevtek.com), is the world’s third-largest maker of landing gear for aircraft, particularly helicopters and small jets. The company also makes metal enclosures for airborne radar and other electronic equipment. Its commercial customers include Boeing, Sikorsky, Bombardier and Embraer. The company also sells its products to military clients. Héroux-Devtek gets about 70% of its sales from outside Canada. In August 2012, Héroux-Devtek sold its Aerostructure (parts for wings and fuselages) and Industrial Products (power-generator components) businesses for $232.0 million. The sale will let the company focus on its landing gear operations....

THE BOEING CO. $76 (New York symbol BA; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 754.1 million; Market cap: $57.3 billion; Priceto- sales ratio: 0.7; Dividend yield: 2.6%; TSINetwork Rating: Above Average; www.boeing.com) continues to receive orders for its new 787 Dreamliner and 737 MAX passenger jets.

In the three months ended September 30, 2012, Boeing booked orders for 369 planes, net of cancellations. Its commercial aircraft division, which supplies 60% of its total revenue, now has a $307-billion backlog that consists of over 4,100 planes. The company’s military division (40% of revenue) also continues to win new orders. Its backlog is $71 billion.

As a result, Boeing’s overall revenue rose 12.9% in the quarter, to $20.0 billion from $17.7 billion a year earlier. However, a $194-million increase in pension costs caused its earnings to fall 6.0%, to $1.0 billion from $1.1 billion. Earnings per share fell 7.5%, to $1.35 from $1.46, on more shares outstanding.

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WESTJET AIRLINES $20.05 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 133.8 million; Market cap: $2.7 billion; Dividend yield: 1.6%) serves 81 destinations in North America, Central America and the Caribbean. Its fleet of 100 modern Boeing 737s are 30% more fuel efficient than older jets. WestJet is scheduled to receive 35 more 737s through 2018. In the three months ended September 30, 2012, the company’s revenue rose 11.8%, to $866.5 million from $775.3 million a year earlier. Demand for its flights remains high, and it has entered into new partnerships with other airlines. Earnings per share jumped 89.3%, to $0.53 from $0.28. WestJet has a hidden asset in its non-union workforce, which helps keep its costs down. Many flyers also find that its service is friendlier than unionized airlines. As well, most of its workers are shareholders....

SASOL LTD. (ADR), $42.53, symbol SSL on New York, has developed a technology to convert coal and natural gas into motor fuels. The company is now the world’s largest producer of fuel from coal at its facility in Secunda, South Africa. It also makes synthetic fuels from natural gas at plants in Qatar and Nigeria. In addition, the company has substantial chemical production interests and produces oil and gas in Africa. It’s also South Africa’s third-largest coal producer. Sasol is now considering spending up to $21 billion to build a complex in Louisiana to turn natural gas into chemicals, diesel and other fuels. The company expects to spend $5 billion to $7 billion on a chemical plant. It would later add an $11-billion to $14-billion gas-to-liquids facility. Sasol will make a final decision on the project in 2014....

SPDR DOW JONES INDUSTRIAL AVERAGE ETF $134.68 (New York symbol DIA; buy or sell through brokers; www.spdrs.com) holds the 30 stocks that make up the Dow Jones Industrial Average.

The fund’s top holdings are IBM, ExxonMobil, Chevron Corp., 3M, Wal-Mart Stores, McDonald’s Corp., Procter & Gamble, Caterpillar Inc., United Technologies and Boeing. The fund’s expenses are about 0.18% of its assets.

SPDR Dow Jones ETF is a buy.

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Parametric Technology Corp., $21.38, symbol PMTC on Nasdaq (Shares outstanding: 119.1 million; Market cap: $2.5 billion; www.ptc.com), makes 3-D computer-aided-design (CAD) software that engineers use to visualize, simulate and analyze a project’s performance early in the design process. This saves time and money and improves quality. The company also makes software that helps its clients make their overall manufacturing processes more efficient. Parametric gets around 75% of its revenue from consulting, training and maintenance services. The remaining 25% comes from selling software licenses....

Most stock markets have risen lately. But as always, they remain subject to unexpected downturns. Even so, the long-term outlook is for higher stock prices. One way to profit from rising markets is to add exchange traded funds (ETFs) that track major stock indexes to your portfolio. ETF’s trade on stock exchanges, just like stocks. Prices are quoted in newspaper stock tables and online. You must pay brokerage commissions to buy and sell ETFs, but their low management fees still give them a cost advantage over most mutual funds....

WESTJET AIRLINES $17.28 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 126.9 million; Market cap: $2.2 billion; Dividend yield: 1.9%) was trading at $14.10 when we made it our #1 Stock of the Year for 2011. It was a year late getting started, but it’s now hitting new highs. The company serves 81 destinations in North America, Central America and the Caribbean. Its fleet of 99 modern Boeing 737s are 30% more fuel efficient than older aircraft. WestJet is scheduled to receive 36 more 737s through 2018. In the three months ended June 30, 2012, WestJet’s revenue rose 9.0%, to $809.3 million from $742.3 million a year earlier. Demand for its flights remains high, and it has entered into new partnerships with other airlines; these were the main reasons for the higher revenue....

WESTJET AIRLINES $17.28 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 126.9 million; Market cap: $2.2 billion; Dividend yield: 1.9%) was trading at $14.10 when we made it our #1 Stock of the Year for 2011. It was a year late getting started, but it’s now hitting new highs.

The company serves 81 destinations in North America, Central America and the Caribbean. Its fleet of 99 modern Boeing 737s are 30% more fuel efficient than older aircraft. WestJet is scheduled to receive 36 more 737s through 2018.

In the three months ended June 30, 2012, WestJet’s revenue rose 9.0%, to $809.3 million from $742.3 million a year earlier. Demand for its flights remains high, and it has entered into new partnerships with other airlines; these were the main reasons for the higher revenue.

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Some economists and advisors say they are puzzled as to why the U.S. stock market has kept on rising since mid-year. After all, negative predictions abound. Pessimists say the world is headed for a decade of slow growth, the eurozone is headed for a breakup, the U.S. and other nations are close to losing control of their growing national debts, and so on. These, however, are all just predictions, and predictions often flop. But investors do recognize that President Obama has done things that scare off business and stock market investors. If Obama loses in November, investor and business confidence could spring back quickly. For instance, early in the new president’s term, he tried to institute a policy called Card Check that would eliminate the legal requirement of a secret ballot in new union-certification votes. Instead of voting in a secret ballot to accept or reject union representation, workers would simply sign (or refuse to sign) a card in favour of accepting the union....