option

Eagle Plains Resources, $0.42, symbol EPL on Toronto (Shares outstanding: 78.6 million; Market cap: $32.6 million; www.eagleplains.com), controls over 35 gold, base-metal and uranium projects Eagle Plains owns several of these projects with other companies, including Aben Resources Ltd., Excelsior Mining Corp., Sandstorm Resources Ltd., Sandstorm Metals and Energy Ltd., Providence Resources Corp., Waterloo Resources Ltd., Windstorm Resources Inc., Blackrock Resources Ltd. (a private B.C. company); Heemskirk Canada Ltd., Touchdown Capital Inc., Active Growth Capital and Giyani Gold Corp. In the past few years, Eagle Plains has signed option agreements with Teck Resources, Alexco Resource Corp., Billiton Metals, Rio Algom Exploration, NovaGold Resources and Kennecott Exploration, as well as many other junior-exploration firms. This has provided over $28.3 million of exploration spending on Eagle Plains’ projects since 1998, including 53,600 metres of drilling....

BCE’s chief executive officer, George Cope, recently exercised 1.233 million in stock options and received 1.233 million shares of BCE. He then sold those shares. That represented about half of his total stock-option and common-share holdings. Cope’s sale was for personal portfolio-planning purposes. That’s not uncommon for an executive with a lot of personal wealth tied up in a single investment. Insiders may sell for a variety of personal reasons that have nothing to do with the company. On the other hand, insiders only make substantial buys for one reason — they think the company has attractive investment appeal. That’s why this insider sale doesn’t change our view of the stock....

The stock market put on a huge rise from mid-2010 through February this year, and this left it ripe for a setback. Japan’s earthquake/tsunami/nuclear plant breakdown provided the trigger for that setback. Events in Japan have been horrific for the victims, of course. The Japanese situation could still weigh on the market for weeks or months to come. However, the damage to Japan is far too isolated and local to put the worldwide economic recovery at risk. World economic growth could slow temporarily while multi-national companies re-think their hiring and investment plans, and consumers re-think major purchases. After they complete their re-thinking, businesses and consumers may speed up their spending to make up for lost time. The outcome of Japan’s nuclear problems could have a big impact. If radiation leakage is widespread, it could spur much more environmental opposition to the nuclear industry. That could shift demand from nuclear to natural-gas power plants, particularly since shale gas discoveries and technology have vastly expanded natural gas reserves in North America and around the world. (One key beneficiary would be our long-time favourite, Encana – see below.)...

Dividend 15 Split Corp., $12.30, symbol DFN on Toronto (Shares outstanding: 13.6 million; Market cap: $167.3 million; www.dividend15.com), is a split-share investment corporation that holds shares of 15 companies: BCE Inc., CI Financial Corporation, Bank of Nova Scotia, Thomson Reuters, National Bank of Canada, TransAlta Corporation, Sun Life Financial, Canadian Imperial Bank of Commerce, TransCanada Corporation, Manulife Financial, TD Bank, Royal Bank of Canada, Bank of Montreal, Telus Corporation and Enbridge. The company can also invest up to 15% of its portfolio in other stocks. Dividend 15 Split Corp. has two share classes: Dividend 15 Split Corp. capital shares (Toronto symbol DFN), and Dividend 15 Split Corp. preferred shares (Toronto symbol DFN.PR.A)....

TORONTO-DOMINION BANK, $83.60, Toronto symbol TD, is the first of Canada’s big five banks to raise its dividend following the 2008-2009 financial crisis. The new quarterly dividend of $0.66 a share, up 8.2% from $0.61, yields 3.2% on an annualized basis. TD also reported better-than-expected quarterly earnings this week. In the three months ended January 31, 2011, the bank’s earnings rose 11.0%, to $1.6 billion from $1.4 billion a year earlier. Earnings per share rose 8.8%, to $1.74 from $1.60, on more shares outstanding. These figures exclude several one-time items, such as gains and losses on securities the bank holds, and costs to integrate recent acquisitions in the U.S. On that basis, the latest earnings easily beat the consensus earnings estimate of $1.54 a share. More of the bank’s customers are repaying their loans on time. As a result, TD’s loan-loss provisions fell 19.9%, to $414 million from $517 million. That was the main reason for the higher earnings....

Copper Fox Metals, $0.97, symbol CUU on Toronto (Shares outstanding: 360.0 million; Market cap: $349.2 million; www.copperfoxmetals.com), is currently focused on completing a feasibility study on the Schaft Creek deposit in northwestern British Columbia. The company believes this is one of Canada’s largest undeveloped copper/gold/molybdenum/silver deposits. Copper Fox recently raised $4 million in a share issue to fund Schaft Creek’s development. Teck Resources has an option to acquire up to 75% of the Schaft Creek deposit by paying Copper Fox four times its development costs to date and arranging financing for a mine. Copper Fox is okay to hold, but only for highly aggressive investors....

Anglo Swiss Resources, $0.25, symbol ASW on Toronto (Shares outstanding: 141.1 million; Market cap: $35.3 million, www.anglo-swiss.com), aims to build a mine at its 100% owned Kenville gold property near Nelson, in southeastern B.C. The company is also earning a majority interest in the 160-square-kilometre Nelson mining camp, south of the Kenville property. Both the Kenville property and the Nelson mining camp have produced gold in the past....

Advanced Exploration, $0.70, symbol AXI on Toronto (Shares outstanding: 96.3 million; Market cap: $67.4 million; www.advanced-exploration.com), is focused on developing its Roche Bay iron-ore project on the coast of the Melville Peninsula in Nunavut. Roche Bay is located near a natural deepwater harbor. The project could hold as much as 357 million tonnes of iron ore grading 65% iron. Advanced moved up from $0.22 at the end of September after Chinese state-owned company XinXing Pipes agreed to make a $1-billion long-term investment to develop the Roche Bay project....

Railways have been around since the 19th century, and they are still the safest, most energy-efficient way to move goods over land. They also face little competition from new competitors, because of the high cost of building new rail lines. Canadian Pacific remains our favourite railway for new buying. It has close relationships with major producers of coal, potash and other commodities. That gives it predictable revenue streams. As well, new, fuel-efficient locomotives and scheduling software are lowering CP’s costs. CANADIAN PACIFIC RAILWAY LTD. $63 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 168.7 million; Market cap: $10.6 billion; Price-to-sales ratio: 2.3; Dividend yield: 1.7%; SI Rating: Above Average) transports freight over a 25,000-kilometre rail network between Montreal and Vancouver. It also connects with major hubs in the U.S. Midwest and Northeast. The U.S. accounts for 30% of CP’s revenue....

TIM HORTONS INC. $37 (Toronto symbol THI; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 176.2 million; Market cap: $6.5 billion; Price-to-sales ratio: 2.7; Dividend yield: 1.4%; SI Rating: Average) is one of Canada’s largest fast-food restaurant chains, with 3,040 outlets that mainly serve coffee and donuts. The company also has 587 stores in the U.S. Tim Hortons recently agreed to sell its half of its Maidstone Bakeries business to Aryzta AG of Switzerland. (Tim Hortons and Aryzta own the bakery through a joint venture.) Based in Brantford, Ontario, Maidstone supplies baked goods to Tim Hortons’ stores in Canada and the U.S. Tim Hortons will receive $475 million when the sale closes later this year. As part of the deal, Maidstone will continue to supply Tim Hortons until 2016. The company has the option to extend this agreement for another year, if necessary. That gives it plenty of time to find new suppliers, or build its own bakery....