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THE WESTAIM CORP. $5.40 (Toronto symbol WED; Aggressive Growth Portfolio, Manufacturing & Industry sector; SI Rating: Speculative) is developing emerging technologies through two subsidiaries, Nucryst Pharmaceuticals Corp. (Toronto symbol NCS) and iFire Technology Corp. Nucryst recently sold shares to the public, and Westaim hopes to take iFire public as well. Nucryst makes medical products that prevent infections in burns and wounds. It has a licensing agreement with UK-based medical device maker Smith & Nephew plc, which helps offset its development costs. Nucryst’s recent public offering cut Westaim’s interest, from 100% to 75.1%. iFire is currently perfecting a new way to make large-size, flat-screen TV sets. Unlike traditional flat-panel displays, which use gasses, liquids or vacuums, iFire’s process applies layers of chemicals onto glass panels. That speeds up the manufacturing process, and cuts costs....

UNITED TECHNOLOGIES LTD. $62 (New York symbol UTX; Conservative Growth Portfolio, Manufacturing & Industry sector; WSSF Rating: Above average) operates in two main fields. Its aerospace businesses include Pratt & Whitney (aircraft engines), Sikorsky (helicopters) and Hamilton Sundstrand (aircraft electronics). These operations supply about 40% of the company’s revenue, and 45% of its profit. It also supplies building equipment and services, which include Carrier (heating and air conditioning), Otis (elevators) and UTC Fire & Security (which provides sprinkler systems, intruder alarms and security services under the Chubb and Kidde banners)....

After a market rise like the one we’ve had in the past few years, investors often wonder, “When should I sell?” The answer depends as much on the stocks you hold as on the market outlook. Some stocks are made to be traded. That includes many of the more speculative stocks we analyze in Stock Pickers Digest, our affiliated publication which focuses on riskier, more aggressive investments than we do here in Wall Street Stock Forecaster. United Technologies (see below) has more than doubled for us since we first recommended buying it in April 2000 (we called it a “dull industrial with exciting prospects”). That alone may spur some investors to sell. But United has many of the earmarks of a well-established company with great long-term potential — one that is worth hanging on to through a market setback....

MCKESSON CORP. $48 (New York symbol MCK; WSSF Rating: Above average) gets about 90% of its revenue and profits from supplying drugs to retail pharmacies, hospitals and clinics. In 2005, the company changed the way it deals with pharmaceutical makers. Under the old method, McKesson earned most of its money from the spread between the price it paid for bulk drugs and price it charged customers. You might say it was speculating on drug prices, and this greatly added to its risk. Under its new method, McKesson earns a fee for distributing drugs. Thanks to this new policy, revenue at this business rose 9% in the company’s third fiscal quarter ended December 31, 2005....

If you’re turning 69, you’ll need to wind up your RRSPs. There are three main options: You can cash in the RRSPs and withdraw the funds in a lump sum (although you’ll be taxed on the entire amount in that year as ordinary income). You can purchase an annuity. Or, you can convert your RRSPs into RRIFs. Years ago, many investors chose annuities — contracts that give you a fixed sum every year until you die. However, returns on annuities are closely linked to the level of interest rates, and interest rates are still near historic lows. In addition, annuities have no liquidity. If interest rates and inflation were to move up, your annuity payments would remain fixed and you would lose purchasing power, but you’d have no way to re-arrange your portfolio. So our advice is to resist any urge you may feel to buy an annuity. Many investors find they are able to generate returns that beat current annuity rates over time, if they invest conservatively in the kinds of high-quality investments that we recommend, well balanced across the five sectors....

AVAYA INC. $10 (New York symbol AV; WSSF Rating: Average) makes telecommunications equipment that helps over one million businesses and government agencies manage their phone and data networks. Avaya was a division of Lucent Technologies Inc. until September 30, 2000, when Lucent handed out its Avaya shares to its investors. Selling equipment accounts for about 47% of Avaya’s total revenue. The remaining 53% comes from equipment rentals, plus maintenance and other services. Overseas markets account for 40% of its revenue. The company’s expertise with traditional phone systems puts it in position to profit from the spread of VoIP technology. Many businesses are now upgrading their systems to handle VoIP, since it can greatly cut their long distance bills. Many Avaya customers are likely to stick with it when they migrate to VoIP, instead of trusting their phones to an untested equipment supplier....

Some investors fear that Voice over Internet Protocol (VoIP) will be the death of companies like Verizon, because it lets phone calls bypass the phone companies and travel over the Internet. We doubt that, since established phone companies are bundling services and taking other steps to maintain their profits. However, some companies are sure to profit from VoIP. Avaya is likely to be one of them. That’s why we are adding it to our WSSF Portfolio for Aggressive Growth. AVAYA INC. $10 (New York symbol AV; WSSF Rating: Average) makes telecommunications equipment that helps over one million businesses and government agencies manage their phone and data networks. Avaya was a division of Lucent Technologies Inc. until September 30, 2000, when Lucent handed out its Avaya shares to its investors....