investment

ALARMFORCE INDUSTRIES $11.23 (Toronto symbol AF TSINetwork Rating: Speculative) (1-800- 267-2001; www.alarmforce.com; Shares outstanding: 12.2 million; Market cap: $137.0 million; Dividend yield: 0.9%) sells twoway voice alarm systems and monitoring services in Canada and increasingly in the U.S. It’s also adding to its prospects with its VideoRelay system, which it launched in October 2011.

In the three months ended July 31, 2012, Alarm- Force’s sales rose 10.9%, to $11.4 million from $10.3 million a year earlier. Even so, AlarmForce lost $6,589, or nil per share, compared to a profit of $831,342, or $0.07.

AlarmForce’s earnings fell because it increased its advertising spending as it expanded into Florida. It also invested more in its VideoRelay system, which lets subscribers watch their homes through their computers and smartphones. Users can either view live video or receive alerts when the system detects motion. VideoRelay also lets you establish two-way voice communication through the camera.

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Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you investment advice on stocks and other topics that will help you develop a successful approach to investing. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put it into practice right away. Today’s tip: “When you look at the way some investments are marketed to investors, you may find that the supposed benefits are actually drawbacks.”...

We think conservative investors could hold up to 10% of their portfolios in foreign stocks. One way to do that is to buy carefully chosen exchange traded funds (ETFs) that have an overseas focus. The best ETFs offer very low management fees and well-diversified, tax-efficient portfolios of high quality stocks. ISHARES MSCI JAPAN INDEX FUND (American Exchange symbol EWJ; us.ishares.com) is an exchange traded fund that tries to match the return of the Morgan Stanley Capital International (MSCI) Japan index....

As they come closer to retirement, some investors decide that they are too old to assume any investment risk. That attitude is often abetted by advisors who recommend that they move a larger part of their investments from stocks to bonds and other fixed-return investments. To some extent, this is an understandable strategy, since bonds provide steady income and a guarantee to repay the principal at maturity....

TORSTAR CORP., $8.15, Toronto symbol TS.B, fell 8% this week after it reported lower-than-expected earnings. The company continues to see weak advertising demand at its newspapers, including its flagship paper, The Toronto Star. Strong competition and unfavourable foreign exchange rates are also hurting profits at its Harlequin book publishing subsidiary. As a result, Torstar’s earnings fell 44.1% in the three months ended September 30, 2012, to $14.1 million, or $0.18 a share, from $25.2 million, or $0.32 a share, a year earlier....

Pat McKeough responds to many personal questions about specific stocks and other investment topics from the members of his Inner Circle. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week, we offer you one of the highlights from these Q&A sessions. While we reserve our buy-hold-sell advice for Inner Circle members, these excerpts provide a great deal of information and analysis on stocks we’ve covered for the Inner Circle. This week, an Inner Circle member asked about one of the more versatile resource stocks in Canada. This company provides housing and a variety of other essential services for remote oil and gas rigs and mining sites. Pat looks at the company’s prospects for growth and its plans to begin making acquisitions in foreign markets....

We think conservative investors could hold up to 10% of their portfolios in foreign stocks. One way to do that is to buy carefully chosen exchange traded funds (ETFs) that have an overseas focus. The best ETFs offer very low management fees and well-diversified, tax-efficient portfolios of high-quality stocks. Here are six international ETFs we like:...

ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $31.60 (Toronto symbol AP.UN; Units outstanding: 60.0 million; Market cap: $1.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.2%; www.alliedpropertiesreit.com) owns 119 office buildings, mostly in major Canadian cities. These mainly Class I properties contain over 8.3 million square feet of leasable area. Class I refers to 19th- and early-20th-century light industrial buildings that have been converted to office and retail space. They usually feature exposed beams, interior brick and hardwood floors. In 2011, the trust bought 22 properties for $456 million. In the first half of 2012, it bought 14 buildings for $175.0 million. Allied has an occupancy rate of 92.3%....

H&R REAL ESTATE INVESTMENT TRUST $24.13 (Toronto symbol HR.UN; Units outstanding: 187.3 million; Market cap: $4.4 billion; TSINetwork Rating: Extra Risk; Dividend yield: 5.2%; www.hr-reit.com) has increased its distribution for the 10th consecutive quarter. The REIT began raising its payout in early 2010 with the goal of reaching an annual rate of $1.25 in the fourth quarter of 2012. The latest increase of 4.2%, to $0.10417 per month from $0.10, lets it achieve that goal. But its strong cash flow, up 35.1% to $0.50 a unit from $0.37 a year ago, prompted it to go further, raising its distribution by 8%, to $0.1125 per month, or $1.35 a year, starting in January 2013. That gives it a 5.6% yield....

From time to time, we are asked about ethical investing (or “socially responsible investing”). I’d say it works as a marketing angle for a handful of small investment companies, and it may make you feel better about your investments. But it won’t do much to improve your investment results, or cut down on what you see as unethical corporate behaviour. If you refuse to invest in an ethically questionable company, you don’t hurt the company. But you do help others who are willing to invest in the company, because they get to buy it a little cheaper....