price to sales ratio

These three Canadian technology firms are adapting to their fast-changing markets by making acquisitions, aggressively cutting costs and eliminating slower-selling products. These moves are improving their long-term prospects. Even so, only one is a buy right now.

CGI GROUP INC....

LINAMAR CORP. $50 (Toronto symbol LNR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 64.8 million; Market cap: $3.2 billion; Price-to-sales ratio: 0.9; Dividend yield: 0.8%; TSINetwork Rating: Extra Risk; www.linamar.com) continues to benefit from strong car sales, which have increased demand for its engines and transmissions....

ENCANA CORP. $22 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 740.9 million; Market cap: $16.3 billion; Price-to-sales ratio: 2.8; Dividend yield: 1.4%; TSINetwork Rating: Average; www.encana.com) has decided not to sell its Deep Panuke offshore natural gas platform near Nova Scotia....

HOME CAPITAL GROUP INC. $44 (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 69.5 million; Market cap; $3.1 billion; Price-to-sales ratio: 1.2; Dividend yield: 1.5%; TSINetwork Rating: Average; www. homecapital.com) gets around 90% of its revenue by making residential mortgage loans to borrowers who don’t meet the stricter standards of larger, traditional lenders, like banks....

The Canadian government recently auctioned off blocks of radio frequencies, or spectrum, to several wireless providers, including Telus and Manitoba Telecom. This spectrum can travel further than other frequencies and pass through solid objects better, so it will help both firms enhance their services....

AGRIUM INC. $105 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 143.7 million; Market cap: $15.1 billion; Price-to-sales ratio: 0.9; Dividend yield 3.2%; TSINetwork Rating: Average; www.agrium.com) plans to expand its nitrogen fertilizer plant in Borger, Texas.

Besides increasing fertilizer production, these upgrades will let Agrium make diesel exhaust fluid, which helps cut harmful emissions from diesel-powered vehicles.

The company will spend $720 million U.S....

SAPUTO INC. $56 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 194.8 million; Market cap: $10.9 billion; Price-to-sales ratio: 1.3; Dividend yield: 1.7%; TSINetwork Rating: Average; www.saputo.com) now owns 87.92% of Warrnambool Cheese and Butter Factory, an Australian producer of milk, cheese, butter and other dairy products....

LOBLAW COMPANIES LTD. $46 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 282.4 million; Market cap: $13.0 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.loblaw.ca) continues to expand its Joe Fresh business, which makes casual clothing and accessories....

TIM HORTONS INC. $62 (Toronto symbol THI; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 138.2 million; Market cap: $8.6 billion; Price-to-sales ratio: 2.8; Dividend yield: 2.1%; TSINetwork Rating: Average; www.timhortons.com) operates 3,588 coffee-and-donut stores in Canada, 859 in the U.S....

STATE STREET CORP. $73 (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 415.2 million; Market cap: $30.3 billion; Price-to-sales ratio: 3.0; Dividend yield: 1.9%; TSINetwork Rating: Average; www.statestreet.com) sells accounting and administrative services to large investors, like mutual funds and pension plans.

State Street has raised its quarterly dividend by 13.3%, to $0.34 a share from $0.30. The new annual rate of $1.36 yields 1.9%. State Street also plans to repurchase $1.8 billion worth of its shares by June 30, 2016. It spent $1.65 billion on buybacks in 2014.

The company’s fee income rises and falls with the value of the mutual funds and other securities it manages. Thanks to improving stock markets and new contracts, it will likely earn $5.16 a share in 2015, up from $5.09 in 2014. The stock trades at 14.1 times that forecast.

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