dividends paid

PRECISION DRILLING CORP. $9.04 (Toronto symbol PD; Aggressive Growth Portfolio, Resource sector; Shares outstanding: 275.7 million; Market cap: $2.5 billion; Price-to-sales ratio: 1.9; No dividends paid since February 2009; TSINetwork Rating: Extra Risk; www.precisiondrilling.com) provides contract-drilling services to land-based oil and gas producers. Precision owns 353 drilling rigs, including 202 in Canada, 148 in the U.S. and three in Mexico and other countries. Precision recently converted from an income trust to a regular corporation. Investors received one common share for each trust unit they held. The change is in response to Ottawa’s new tax on income-trust distributions, which comes into effect on January 1, 2011. ...

TERADATA CORP. $41 (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector: Shares outstanding: 167.5 million; Market cap: $6.9 billion; Price-to-sales ratio: 3.7; No dividends paid; TSINetwork Rating: Average; www.teradata.com) makes computers and software that capture and store large amounts of a business’s data. Teradata then analyzes this information and identifies buying habits and trends. Teradata is taking advantage of the weak economy to hire new salespeople. That’s helping it enter new markets and offer more technology and services to its existing clients. These efforts should add $70 million to Teradata’s 2010 sales. As well, it continues to spend around 7% of its revenue on research. Resulting new products should also fuel its growth. In the three months ended September 30, 2010, earnings rose 19.0%, to $75 million from $63 million a year earlier. Earnings per share rose 22.2%, to $0.44 from $0.36, on fewer shares outstanding. Sales rose 15.1%, to $489 million from $425 million. The company has no debt, and holds cash of $741 million, or $4.42 a share....

AGILENT TECHNOLOGIES INC. $36 (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 346.0 million; Market cap: $12.5 billion; Price-to-sales ratio: 2.3; No dividends paid; TSINetwork Rating: Average; www.agilent.com) makes testing systems that help improve electronic products, such as cellphones and networking equipment. In May 2010, Agilent bought Varian Inc. for $1.5 billion. Varian makes a wide range of medical and drug-testing equipment, such as mass spectrometers that detect and measure substances in blood and other samples. Medical-equipment demand is less cyclical than testing products, so this move cuts Agilent’s risk. Thanks to Varian, Agilent earned $706 million, or $2.00 a share, in the year ended October 31, 2010. That’s up 152.1% from $280 million, or $0.80 a share, in fiscal 2009. These figures exclude costs to integrate the new operations. Revenue rose 21.5%, to $5.4 billion from $4.5 billion. The company spends around 11% of its revenue on research....

VERIGY LTD. $8.84 (Nasdaq symbol VRGY; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 60.0 million; Market cap: $530.4 million; Price-to-sales ratio: 1.1; No dividends paid; TSINetwork Rating: Extra Risk; www.verigy.com) designs and makes test systems that are used in the production of computer chips. The company recently agreed to acquire rival LTXCredence Corp. (Nasdaq symbol LTXC) in an all-stock deal. Verigy shareholders will own 56% of the combined company, which will keep the Verigy name and trading symbol. LTX investors will own the remaining 44%. The merger will let Verigy offer its customers a wider variety of testing systems, and expand its market share. As well, the company feels that combining manufacturing and other operations will save it $25 million a year....

Visa has been around since the 1960s, but only recently became a publicly traded company. eBay started up in 1995. Because of its unique business model, the company was able to avoid the implosion of the dot-com bubble in the early 2000s. We feel both companies offer an attractive way for investors to add to their Finance-sector holdings without exposing themselves to the mortgage-related problems that continue to depress bank stocks. Visa is suitable for all investors. eBay is more risky. VISA INC. $76 (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 836.9 million; Market cap: $63.6 billion; Price-to-sales ratio: 7.9; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.visa.com) operates the world’s largest retail electronic-payments network. The company processes credit, debit, prepaid and commercial payments under the Visa, Visa Electron, Interlink and PLUS brands. Visa’s credit cards are accepted around the world, and Visa/PLUS is one of the largest global automated-teller machine networks, offering cash access in more than 200 countries....

These four companies dominate their niche markets. That gives them protection from new competitors, and helps them stay profitable during economic downturns. Still, only three are buys right now. AGILENT TECHNOLOGIES INC. $36 (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 346.0 million; Market cap: $12.5 billion; Price-to-sales ratio: 2.3; No dividends paid; TSINetwork Rating: Average; www.agilent.com) makes testing systems that help improve electronic products, such as cellphones and networking equipment. In May 2010, Agilent bought Varian Inc. for $1.5 billion. Varian makes a wide range of medical and drug-testing equipment, such as mass spectrometers that detect and measure substances in blood and other samples. Medical-equipment demand is less cyclical than testing products, so this move cuts Agilent’s risk....

AUTODESK INC. $35 (Nasdaq symbol ADSK; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 227.1 million; Market cap: $7.9 billion; Price-to-sales ratio: 4.3; No dividends paid; TSINetwork Rating: Average; www.autodesk.com) earned $0.32 a share in its third quarter, which ended October 31, 2010. That’s up 23.1% from $0.26 a year earlier. These figures exclude unusual costs, including expenses related to a restructuring that included cutting 10% of its workforce and merging facilities. Revenue rose 14.3%, to $476.7 million from $416.9 million. Manufacturing activity continues to increase after the recession. That’s spurring demand for Autodesk’s 3D design software. Autodesk is a buy.

More advertisers are targeting audiences that are more specific than those offered by traditional media, like newspapers and TV. That’s helping marketing specialists like Teradata and Harte-Hanks. This trend should spur both companies’ growth for years to come. TERADATA CORP. $41 (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector: Shares outstanding: 167.5 million; Market cap: $6.9 billion; Price-to-sales ratio: 3.7; No dividends paid; TSINetwork Rating: Average; www.teradata.com) makes computers and software that capture and store large amounts of a business’s data. Teradata then analyzes this information and identifies buying habits and trends. Teradata is taking advantage of the weak economy to hire new salespeople. That’s helping it enter new markets and offer more technology and services to its existing clients. These efforts should add $70 million to Teradata’s 2010 sales. As well, it continues to spend around 7% of its revenue on research. Resulting new products should also fuel its growth....

FORD MOTOR CO. $16 (New York symbol F; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 3.5 billion; Market cap: $56.0 billion; Price-to-sales ratio: 0.1; No dividends paid; TSINetwork Rating: Speculative; www.ford.com) is lowering its stake in Japanese carmaker Mazda Motor Corp. to 3.5% from 11.0%. This will let Ford and Mazda end a three-way joint venture with a Chinese carmaker. Ford will then be free to form new ventures in China. Ford will sell these shares through an auction process. It expects to receive $372 million. That’s equal to 20% of the $1.9 billion, or $0.48 a share, that Ford earned in its latest quarter. Ford is a buy.

TRIMBLE NAVIGATION $35.95 (Nasdaq symbol TRMB; SI Rating: Speculative) (408-481-6914; www.trimble.com; Shares outstanding: 119.2 million; Market cap: $4.3 billion; No dividends paid) makes global positioning system (GPS) devices and technology for four main markets: 1) Engineering and construction accounts for the largest share (55%) of Trimble’s sales. 2) Agricultural GPS products (25% of sales) help farmers cut costs and increase yields. For example, GPS allows for more precise plowing, seeding and fertilizing, even at night....