dividends paid

These two leading makers of automated teller machines (ATMs) continue to diversify their businesses and develop innovative new products. These moves strengthen their long-term prospects. As well, both stocks trade at attractive multiples to their earnings. NCR CORP. $18 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 157.4 million; Market cap: $2.8 billion; Price-to-sales ratio: 0.5; No dividends paid; TSINetwork Rating: Average; www.ncr.com) is a leading maker of ATMs, checkout scanners, cash registers and self-serve kiosks. In August 2011, NCR paid $1.2 billion for Radiant Systems Inc., which makes point-of-sale terminals and self-serve kiosks for hotels, restaurants and gas stations. This purchase will cut NCR’s reliance on ATMs, which account for 55% of its overall revenue....

DUNDEE CORP. $24 (Toronto symbol DC.A; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 51.7 million; Market cap: $1.2 billion; Price-to-sales ratio: 6.6; No dividends paid; TSINetwork Rating: Average; www.dundeecorp.com) is buying the 51% of Dundee Capital Markets Inc. (Toronto symbol DCM) that it does not already own. This business sells investment-management and brokerage services.

This purchase will cost Dundee roughly $89 million, which is slightly more than the $88.6 million, or $1.29 a share, that it earned in the three months ended September 30, 2011. Taking full control will let Dundee lower this business’s administrative and other costs. The deal needs shareholder and regulatory approvals, but it should close in the first half of 2012.

Dundee is a buy.

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RESEARCH IN MOTION INC. $16 (Toronto symbol RIM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 524.2 million; Market cap: $8.4 billion; Price-to-sales ratio: 0.4; No dividends paid; TSINetwork Rating: Above Average; www.rim.com) has suffered several setbacks in the past few months, including a network outage in October 2011 that stopped or slowed the delivery of emails to its BlackBerry smartphone users. As well, sales of RIM’s PlayBook tablet computer have been slower than expected. That forced RIM to write down unsold inventory.

Excluding unusual items, RIM’s earnings fell 26.8% in its fiscal 2012 third quarter, which ended November 26, 2011, to $667 million, or $1.27 a share. (All amounts except share price and market cap in U.S. dollars.) A year earlier, it earned $911 million, or $1.74 a share. RIM spends 7% of its revenue on research.

Revenue fell 5.9%, to $5.2 billion from $5.5 billion. However, revenue is up 24.0% from $4.2 billion in the second quarter, thanks to the launch of new smartphones and strong sales in the U.K., France, South Africa, Mexico and Argentina. Hardware sales accounted for 79% of RIM’s revenue in the latest quarter, followed by services (19%) and software (2%).

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CGI GROUP INC. $19 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 260.7 million; Market cap: $5.0 billion; Price-to-sales ratio: 1.1; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) was our “#1 Stock of the Year” for 2010 and 2011.

The company is Canada’s largest provider of computer-outsourcing services. CGI’s services can automate routine functions, such as accounting and buying supplies. That makes its clients more efficient, and lets them focus on their main businesses.

CGI’s earnings jumped 19.9% in its 2011 fiscal year, which ended September 30, 2011, to $435.1 million from $362.8 million a year earlier. CGI spent $305.0 million on share buybacks in fiscal 2011. Due to fewer shares outstanding, earnings per share rose 27.4%, to $1.58 from $1.24. Revenue rose 15.8%, to $4.3 billion from $3.7 billion. If you exclude the negative impact of exchange rates, revenue would have risen 18.9%.

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SYMANTEC CORP. $16.55 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (1-408-517-8000; www.symantec.com; Shares outstanding: 751.0 million; Market cap: $12.4 billion; No dividends paid) makes computer-security software, including the popular Norton antivirus program. It also sells products and services for email filtering, data backup and other business-related uses. In addition, Symantec offers data-archiving software that helps its clients meet increasingly strict regulatory and compliance standards. In the three months ended September 30, 2011, Symantec’s earnings rose 33.8%, to $182 million from $136 million a year earlier. Earnings per share jumped 41.2%, to $0.24 from $0.17, on fewer shares outstanding. If you exclude unusual items, mainly asset writedowns and restructuring costs, earnings per share would have risen 14.7%, to $0.39 from $0.34. That matched the consensus earnings estimate. Sales rose 13.6%, to $1.7 billion from $1.5 billion. The company gets 52% of its sales from overseas. If you disregard the positive impact of exchange rates, sales would have risen 9% in the latest quarter....

REITMANS (CANADA) LTD. $14.25 (Toronto symbol RET.A; TSINetwork Rating: Extra Risk) (514-384-1140; www.reitmans.com; Shares outstanding: 66.3 million; Market cap: $944.8 million; Dividend yield: 5.6%) owns 975 women’s clothing stores across Canada. The chain consists of 366 Reitmans, 158 Penningtons, 158 Smart Set, 123 Addition Elle, 77 Thyme Maternity, 68 RW & Co. and 25 Cassis stores. Reitmans is in the process of closing the Cassis stores and converting them to its other chains. In the three months ended October 29, 2011, Reitmans’ earnings fell 49.0%, to $10.6 million, or $0.16 a share, from $20.7 million, or $0.31 a share, a year earlier. The company’s sales were down 3.2%, to $254.1 million from $262.5 million. Same-store sales declined 5.8%....

IAMGOLD $16.38 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464-9999; www.iamgold.com; Shares outstanding: 376.8 million; Market cap: $6.2 billion; Dividend yield: 1.2%) sold its Mupane mine in Botswana for $34.2 million in September 2011 (all figures except share price and market cap in U.S. dollars). Earlier in 2011, IAMGold sold its 18.9% stake in the Tarkwa and Damang gold mines in Ghana to South African mining giant Gold Fields Ltd. for $667 million in cash. The sales left IAMGold with 38% of the Sadiola mine and 40% of the Yatela mine, both located in Mali; 90% of its new Essakane gold mine in Burkina Faso; 100% of the Doyon mine in Quebec; and 100% of the Rosebel mine in Suriname, South America. In addition, IAMGold also has a 1% royalty interest in the Diavik diamond mine in the Northwest Territories. It also owns the Niobec niobium mine in Quebec. Niobium is a rare metal that when used as an additive makes steel stronger, more heat resistant and easier to weld....

EUROPEAN GOLDFIELDS $11.95 (Toronto symbol EGU; TSINetwork Rating: Speculative) (44 (20) 7408 9534; www.egoldfields.com; Shares outstanding: 183.8 million; Market cap: $2.2 billion; No dividends paid) is now the subject of a friendly takeover bid from Eldorado Gold (symbol ELD on Toronto). The offer is for 0.85 of an Eldorado share and $0.0001 in cash for each European Goldfields share. European Goldfields’ board of directors has approved the takeover. European Goldfields’ Skouries and Olympias gold projects in Greece and its Certej project in Romania would be good fits for Eldorado, which has mines in Greece and Turkey. Eldorado Gold is now trading at $14.20, which makes the cash and share portions of its offer worth a combined $12.07 per European Goldfields share. European Goldfields is trading just below that price, which indicates that many investors are not expecting a higher offer. However, European Goldfields says it received proposals from a number of potential buyers earlier this year, so a rival bid could still emerge....

RUGGEDCOM INC. $25.31 (Toronto symbol RCM; TSINetwork Rating: Speculative) (1-888-264-0006; www.ruggedcom.com; Shares outstanding: 12.6 million; Market cap: $318.9 million; No dividends paid) is still the target of a hostile takeover bid from U.S. cable and networking equipment manufacturer Belden Inc. RuggedCom makes computer-networking equipment that is used in harsh environments. Belden recently reaffirmed its offer of $22 in cash for each RuggedCom share. RuggedCom feels that Belden’s offer is too low, and has advised shareholders to reject the bid. The company is looking for other buyers. RuggedCom is now trading at $25.31 a share, or 15.0% above Belden’s bid. This indicates that investors are anticipating a higher offer from Belden or another bidder....

TIM HORTONS $48.38 (Toronto symbol THI; TSINetwork Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 160.1 million; Market cap: $7.7 billion; Dividend yield: 1.4%) operates 3,225 coffee-and-donut shops in Canada and 645 in the U.S. Without one-time items, Tim Hortons earned $0.65 a share in the three months ended October 2, 2011. That’s up 18.2% from $0.55 a share a year earlier. Sales rose 8.4%, to $726.9 million from $670.5 million. Canadian same-store sales rose 4.7%, because Tim Hortons launched successful new products like real fruit smoothies and specialty bagels. U.S. same-store sales rose 6.3%, as customers spent more per visit. The company also raised its prices to cover higher costs for coffee and other foods....