investment

APACHE CORP., $48.97, New York symbol APA, fell 8% after rival oil producer Anadarko Petroleum (New York symbol APC) withdrew its merger offer. Savings from eliminating overlapping functions would have helped the combined firm cope with weak oil prices.

Meanwhile, Apache produced 486,409 barrels of oil equivalent a day in the three months ended September 30, 2015, up 6.8% from 455,295 a year earlier. The gain mainly came from improving efficiency at the company’s international operations, including its offshore wells in the North Sea.

However, lower oil prices resulted in a $0.05-a-share loss, compared to a profit of $1.27 a share a year earlier. Even so, that was much better than the consensus estimate of a $0.36-a-share loss. Revenue dropped 56.5%, to $1.5 billion from $3.4 billion.

OUR RECOMMENDATION: Apache is still a hold.

...

Canada’s big five banks (including Bank of Montreal, see page 118) make up the bulk of most investors’ finance-sector holdings. However, we feel it’s prudent to diversify beyond the banks with stocks like the three we analyze below. All three are leaders in their niche markets, which helps them thrive in good times and hold their own when the economy weakens. We see all three as buys, but only aggressive investors should consider Home Capital Group. GREAT-WEST LIFECO INC. $35 (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 993.2 million; Market cap: $34.8 billion; Price-to-sales ratio: 1.0; Dividend Yield: 3.7%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is Canada’s second-largest insurance company, after Manulife Financial (Toronto symbol MFC). It also offers mutual funds, retirement planning and wealth management....

The new Liberal government in Ottawa plans to spend more on roads, bridges and public transit over the next three years. SNC-Lavalin, below, is already working on big public works projects, including a transit line in Toronto and a bridge in Montreal, so it should gain from this new spending. The Liberals are also in favour of certain new pipelines, which should help ShawCor (see next article). SNC-LAVALIN GROUP INC. $42 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 149.8 million; Market cap: $6.3 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.4%; TSINetwork Rating: Average; www.snclavalin.com) is narrowing its focus to engineering projects in the oil and gas, mining and water-treatment industries....

BANK OF MONTREAL $77 (Toronto symbol BMO; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 642.5 million; Market cap: $49.5 billion; Price-to-sales ratio: 2.9; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.bmo.com) is Canada’s fourth-largest bank, with $672.4 billion of assets. The bank has steadily expanded beyond Canada in recent years. For example, in 2011, it acquired Wisconsin-based banking firm Marshall & Ilsley for $4.0 billion in stock. That more than doubled the number of branches Bank of Montreal operates in the U.S. and added two million customers. In 2014, it paid $1.3 billion for U.K.-based wealth management firm F&C Asset Management, which sells investment services to individuals and institutional clients, such as pension plans and insurance companies....

ENBRIDGE INC. $50 (www.enbridge.com) is paying $750 million for 24.9% of the 400-megawatt Rampion offshore wind project in the English Channel. To put that price in context, Enbridge earned $399 million, or $0.79 a share, in the third quarter of 2015....

We take a close look at a private REIT to show the importance of looking beyond marketing hype

GREAT-WEST LIFECO INC. $35 (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 993.2 million; Market cap: $34.8 billion; Price-to-sales ratio: 1.0; Dividend Yield: 3.7%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is Canada’s second-largest insurance company, after Manulife Financial (Toronto symbol MFC). It also offers mutual funds, retirement planning and wealth management. Power Financial (Toronto symbol PWF) owns 67.2% of Great-West. As of September 30, 2015, the company had $1.15 trillion of assets under administration, up 12.9% from a year earlier. Great-West gets 45% of its earnings from Canada, where it operates under well-known labels like Great-West Life, Canada Life and Freedom 55....

Toronto-based InvestEco Capital is now launching a second InvestEco Sustainable Food Fund. These funds are limited partnerships that invest in small to medium-sized private companies in the growing North American market for natural and healthy foods. To invest in the fund, you must either buy $150,000 worth of units or qualify as an accredited investor. Generally speaking, accredited investors must live in Canada and have a certain minimum income or financial asset level....

Q: Pat: Can you suggest some U.S. ETFs that are set up to move in the opposite direction of particular stock indexes, rather than in the same direction? Regards. A: U.S.-based ProShares offers a range of exchange traded funds for U.S. stock indexes. The company offers three types of ETFs: 1) ProShares Short ETFs are designed to move in the opposite direction of the underlying index. For example, ProShares Short S&P500, $20.77, symbol SH on New York, aims to move in the opposite direction of the daily performance of the S&P 500 Index. This ETF has a 0.90% MER....

ENBRIDGE INC. $50 (www.enbridge.com) is paying $750 million for 24.9% of the 400-megawatt Rampion offshore wind project in the English Channel. To put that price in context, Enbridge earned $399 million, or $0.79 a share, in the third quarter of 2015. Construction on this wind farm began in September 2015, and it should start up in 2018....