dividends paid

CANALASKA URANIUM $0.10 (Toronto symbol CVV; SI Rating: Start-up) (1-800-667-1870; www.canalaska.com; Shares outstanding: 171.6 million; Market cap: $16.3 million; No dividends paid) plans to consolidate its shares on a 1-for-10 basis. That will lower its shares outstanding from about 171.6 million to 17.2 million. Companies typically cut back their shares to make them more attractive to institutional or other large investors who typically avoid stocks that trade for just pennies a share. Consolidations, or reverse stock splits, sometimes hurt investor confidence. They can undermine the value of a given holding by as much as 25%, at least temporarily, even though there is no change in the company’s business or assets. Other times, however, they have little, if any, effect....

FORTRESS PAPER $34.90 (Toronto symbol FTP; SI Rating: Extra Risk) (1-888-820-3888; www.fortresspaper.com; Shares outstanding: 12.1 million; Market cap: $423.9 million; No dividends paid) operates a plant in Switzerland that makes security paper used in banknotes, passports and visas. The company’s German plant makes high-quality wallpaper-base products. In April 2010, Fortress bought an idled pulp plant in Thurso, Quebec, for $3 million. It restarted pulp production, but plans to convert the plant to produce a type of cellulose mainly used in viscose-fibre (rayon) products, including clothing. This fibre has strong growth prospects, particularly in warmer regions with growing economies, such as Asia and South America. The Quebec and federal governments will contribute grants, tax credits and loans for most of the $153-million conversion. Start up is scheduled for mid-2011. In the three months ended June 30, 2010, Fortress’ revenue rose 22%, to $60.5 million from $49.6 million a year earlier. Excluding one-time items, earnings per share rose 42.3%, to $0.37 from $0.26. Strong pulp prices were the main reason for the gains....

CGI GROUP INC. $15 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 279.5 million; Market cap: $4.2 billion; Price-to-sales ratio: 1.1; No dividends paid; SI Rating: Extra Risk) is Canada’s largest provider of computer-outsourcing services. It also operates in 15 other countries. Canada provided 60% of CGI’s revenue in its latest fiscal quarter, followed by the U.S. (35%) and Europe (5%). CGI follows what it calls a “Build and Buy” strategy. The “Build” part refers to expanding relationships with its existing clients and attracting new ones. The company’s outsourcing contracts typically last 5 to 10 years. That gives it steady, predictable revenue streams. The “Buy” part of the company’s strategy involves making acquisitions. CGI cuts the risk of growing by acquisition by purchasing smaller companies that enhance its products, or expand its geographic reach....

THE WESTAIM CORP. $0.56 (Toronto symbol WED; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 580.6 million; Market cap: $325.1 million; Price-to-sales ratio: 1.5; No dividends paid; SI Rating: Speculative) completed its $286.3-million purchase of Montreal-based Jevco Insurance Co. on March 26, 2010. Jevco sells insurance to high-risk drivers, as well as owners of motorcycles, snowmobiles and recreational vehicles. Westaim earned $5.5 million, or $0.01 a share, in the three months ended June 30, 2010. It lost $4.5 million on its personal auto-insurance business due to higher accident claims in Ontario. However, its commercial vehicle insurance business earned $7.5 million in the latest quarter. Before the Jevco purchase, Westaim had no operations. As a result, it lost $514,000, or $0.01 a share, in the year-earlier quarter. Westaim is a hold.

DUNDEE CORP. $12 (Toronto symbol DC.A; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 71.2 million; Market cap: $854.4 million; Price-to-sales ratio: 0.7; No dividends paid; SI Rating: Average) is a holding company with subsidiaries in three main areas: wealth management, real estate and resources. In the three months ended June 30, 2010, Dundee earned $51.2 million, or $0.64 a share. That’s up 71.5% from $29.9 million, or $0.39 a share, a year earlier. In the latest quarter, Dundee realized a $45.7-million gain on the sale of securities. A year earlier, these gains totalled just $120,000. That was the main reason for the higher earnings. Dundee is a hold....

Small-cap stocks, generally thought of as those with a market capitalization under $1 billion, have not performed as well as larger companies during the recent market volatility. Over the past year, the Russell 3000 Index, which has median market cap of $807 million, has gained 5.0%, compared to 7.4% for the Dow Jones Industrial Average. That’s because most investors prefer larger companies with steady earnings and dividends in times of economic uncertainty. Like many small caps, the four industrial stocks below have been volatile lately. However, we feel they are suitable for most portfolios. That’s because all four are leaders in their industries, which gives them a competitive advantage. They are also cutting costs. However, only two are buys right now. TENNANT CORP. $32 (New York symbol TNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 19.0 million; Market cap: $608.0 million; Price-to-sales ratio: 1.0; Dividend yield: 1.8%; WSSF Rating: Average) makes industrial floor-cleaning equipment, including scrubbers, sweepers and polishers. It also makes cleaning equipment for garages, stadiums, parking lots and city streets. Tennant’s clients are mainly municipal governments and businesses....

IDEXX LABORATORIES INC. $56 (Nasdaq symbol IDXX; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 57.7 million; Market cap: $3.2 billion; Price-to-sales ratio: 3.0; No dividends paid; WSSF Rating: Average) earned $0.62 a share in the three months ended June 30, 2010. That’s up 12.7% from $0.55 a year earlier. Revenue rose 5.9%, to $281.5 million from $265.7 million. Strong sales of new disease-testing equipment to veterinarians pushed up Idexx’s results. However, the company now expects its revenue for 2010 will range from $1.09 billion to $1.1 billion, down from its prior view of $1.1 billion to $1.12 billion. That’s mainly because the high U.S. dollar is hurting the contribution from sales in overseas markets, which account for 40% of its revenue. As well, the slow economy may prompt pet owners to cut back on routine check-ups. That would give veterinarians less to spend on new equipment. Idexx Laboratories is a hold.

TERADATA CORP. $30 (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 167.3 million; Market cap: $5.0 billion; Price-to-sales ratio: 2.8; No dividends paid; WSSF Rating: Average) makes computers and software that capture and store large amounts of a business’s data. Analyzing this information helps its clients make better decisions. In the three months ended June 30, 2010, Teradata earned $0.44 a share, up 22.2% from $0.36 a year earlier. Revenue rose 11.6%, to $470 million from $421 million. Teradata is adding to its sales force and spending more on research. That will weigh on its short-term earnings, but should fuel its long-term growth. Teradata is a buy.

BROADRIDGE FINANCIAL SOLUTIONS INC. $20 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 126.7 million; Market cap: $2.5 billion; Price-to-sales ratio: 1.2; Dividend yield: 3.0%; WSSF Rating: Average) has purchased privately held NewRiver Inc., which specializes in electronic forms that make it easier for financial companies to submit data to the Securities and Exchange Commission and other regulators. The $77.0 million price is equal to 34% of the $225.1 million, or $1.62 a share, that Broadridge earned in the fiscal year ended June 30, 2010. NewRiver already supplies electronic forms to Broadridge. This familiarity cuts the risk of an unpleasant surprise. Moreover, the purchase gives Broadridge access to NewRiver’s high-quality clientele, including mutual-fund companies, brokerage firms and pension-plan administrators....

MCCORMICK & CO. INC. $40 has agreed to buy 26% of Eastern Condiments Private Ltd., a leading maker of spices and seasonings in India. The deal should close by the end of 2010. McCormick is paying $35 million for this stake; it earned $66.2 million, or $0.49 a share, in the three months ended May 31, 2010. India is the world’s largest spice consumer, and this investment should help McCormick increase its sales in the country. Buy. CEDAR FAIR L.P. $11 earned $0.09 a unit in the three months ended June 27, 2010. This figure excludes one-time costs related to a failed takeover of the amusement-park operator by a private equity fund. The latest earnings are down 30.8% from $0.13 a share a year earlier. Revenue rose 4.3%, to $275.6 million from $264.1 million. Attendance rose 7% in the first half of 2010. Hold. WASHINGTON FEDERAL INC. $14 earned $12.7 million in its third quarter, which ended June 30, 2010. That’s up 406.7% from $2.5 million a year earlier. Earnings per share rose 266.7%, to $0.11 from $0.03, on more shares outstanding. The company is setting aside less cash for bad loans as the economy recovers; this was the main reason for the earnings jump. As well, dividends paid to the U.S. Treasury under the Troubled Asset Relief Program depressed its year-earlier earnings. Hold.