oil prices

TECK RESOURCES LTD. $10 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 576.3 million; Market cap: $5.8 billion; Price-to sales ratio: 0.7; Dividend yield: 1.0%; TSINetwork Rating: Extra Risk; www.teck.com) is a leading producer of metallurgical coal, a key ingredient in steel making. Its six coal mines (five in B.C. and one in Alberta) account for 11% of global demand. Asian customers buy 75% of the company’s coal. In 2015, coal accounted for 37% of its revenue and 34% of its earnings. Teck also produces zinc (34%, 31%), which prevents rusting when added to steel. The company is a major supplier of copper (29%, 35%), and produces other metals, including gold, lead and molybdenum (which is used in steelmaking)....

TORONTO-DOMINION BANK $55 (Toronto symbol TD; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.9 billion; Market cap: $104.5 billion; Price-to-sales ratio: 3.3; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.td.com) earned $2.4 billion, or $1.18 a share, in its fiscal 2016 first quarter, which ended January 31, 2016. That’s up 5.8% from $2.1 billion, or $1.12, a year earlier. Earnings for its Canadian banks (62% of the total) rose 4.4%, thanks to strong loan demand and gains from the wealthmanagement and insurance businesses. Earnings from U.S. banking (31%) jumped 20.2%. That’s largely because the low Canadian dollar enhanced its profits. However, earnings from wholesale banking (7%) fell 16.1%. Lower stock trading volumes offset higher advisory fees on mergers and acquisitions. Revenue rose 13.1%, to $8.6 billion from $7.6 billion. However, TD set aside $642 million to cover potential future loan losses, up 77.3% from $362 million. That’s mainly because it recently acquired the U.S. credit card portfolio of department store Nordstrom’s (New York symbol JWN). As well, low oil prices could hurt the ability of energy producers to repay their loans. These borrowers represent less than 1% of TD’s overall loan portfolio....

Teck’s shares have rebounded strongly since falling to $3.65 in January 2016. That’s mainly because the company is doing a good job holding down its costs while it waits for metallurgical coal, copper and zinc prices to recover. The direction of commodity prices depends on many things, particularly economic growth rates around the world. Still, we feel Teck’s lower costs and high-quality reserves put it in a strong position to rapidly expand its profits as prices stabilize. TECK RESOURCES LTD. $10 (Toronto symbol TCK.B; Conservative Growth Portfolio, Resources sector; Shares outstanding: 576.3 million; Market cap: $5.8 billion; Price-to sales ratio: 0.7; Dividend yield: 1.0%; TSINetwork Rating: Extra Risk; www.teck.com) is a leading producer of metallurgical coal, a key ingredient in steel making. Its six coal mines (five in B.C. and one in Alberta) account for 11% of global demand....

TORONTO-DOMINION BANK $55 (Toronto symbol TD; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.9 billion; Market cap: $104.5 billion; Price-to-sales ratio: 3.3; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.td.com) earned $2.4 billion, or $1.18 a share, in its fiscal 2016 first quarter, which ended January 31, 2016. That’s up 5.8% from $2.1 billion, or $1.12, a year earlier. Earnings for its Canadian banks (62% of the total) rose 4.4%, thanks to strong loan demand and gains from the wealthmanagement and insurance businesses. Earnings from U.S. banking (31%) jumped 20.2%. That’s largely because the low Canadian dollar enhanced its profits. However, earnings from wholesale banking (7%) fell 16.1%. Lower stock trading volumes offset higher advisory fees on mergers and acquisitions. Revenue rose 13.1%, to $8.6 billion from $7.6 billion. However, TD set aside $642 million to cover potential future loan losses, up 77.3% from $362 million. That’s mainly because it recently acquired the U.S. credit card portfolio of department store Nordstrom’s (New York symbol JWN). As well, low oil prices could hurt the ability of energy producers to repay their loans. These borrowers represent less than 1% of TD’s overall loan portfolio....

Intertape Polymer, $17.18, symbol ITP on Toronto (Shares outstanding: 58.7 million; Market cap: $1.0 billion; www.intertapepolymer.com), develops and makes a variety of pressure-sensitive and water-activated sealing tapes, woven-coated fabrics and a range of packaging. It has 11 plants in North America and one in Europe. Intertape’s sales fell 4.1% in the three months ended September 30, 2015, to $200.6 million from $209.1 million a year earlier. (All figures except share price and market cap in U.S. dollars.) The fall was mostly due to start-up costs at a new plant in South Carolina. Meanwhile, the company earned $12.9 million, or $0.21 a share, before one-time items in the latest quarter. That was down 7.9% from $14.0 million, or $0.22 a share. The decline came from the lower sales, as well as higher research and income tax expenses....

PENGROWTH ENERGY $1.18 (Toronto symbol PGF; Shares outstanding: 543.0 million; Market cap: $564.8 million; TSINetwork Rating: Average; No dividends paid; www.pengrowth.com) produces oil and natural gas, mostly in Western Canada. This includes its Lindbergh oil sands project in Alberta. Pengrowth has suspended its $0.01-a-share quarterly dividend in response to the sharp decline in oil prices. It will also reduce its capital spending to between $60 million to $70 million in 2016, from $184 million in 2015. The company also laid off workers. That should save it $25 million in 2016. In addition, Pengrowth aims to sell $600 million of less important properties. These funds will probably go toward paying down its $2.1 billion debt. That’s now 3.7 times its depressed market cap....

ISHARES MSCI SOUTH KOREA INDEX FUND $48.28 (New York symbol EWY; buy or sell through brokers) aims to track the MSCI Korea Index. The ETF’s top holdings are Samsung Electronics, 21.2%; Hyundai Motor, 3.7%; SK Hynix Semiconductor, 2.9%; Hyundai Mobis (auto parts), 2.8%; Shinhan Financial, 2.7%; Naver (Internet), 2.6%; Korea Electric Power, 2.5%; LG Chemicals, 2.3%; Posco (steel), 2.2%; Kia Motors, 2.0%; AmorePacific Corp. (cosmetics), 2.0%; KT&G Corp. (tobacco), 1.9%; KB Financial, 1.9%; and Samsung Fire & Marine Insurance, 1.7%. The iShares MSCI South Korea Index Fund was launched on May 9, 2000. Its expense ratio is 0.64%....

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 highquality stocks. Here’s a look at four international ETFs we see as buys, and two we feel you should hang on to:...

PENGROWTH ENERGY $1.18 (Toronto symbol PGF; Shares outstanding: 543.0 million; Market cap: $564.8 million; TSINetwork Rating: Average; No dividends paid; www.pengrowth.com) produces oil and natural gas, mostly in Western Canada. This includes its Lindbergh oil sands project in Alberta. Pengrowth has suspended its $0.01-a-share quarterly dividend in response to the sharp decline in oil prices. It will also reduce its capital spending to between $60 million to $70 million in 2016, from $184 million in 2015. The company also laid off workers. That should save it $25 million in 2016. In addition, Pengrowth aims to sell $600 million of less important properties. These funds will probably go toward paying down its $2.1 billion debt. That’s now 3.7 times its depressed market cap....

Suncor Energy wrote down its oil reserves because of falling crude prices, but it will still acquire Canadian Oil Sands and improve efficiencies for the Syncrude project.