price to sales ratio

U.S. oil production is up 40% since 2008. That’slargely because of new technologies like hydraulicfracturing, or fracking. This involves injecting water,sand and chemicals to break up shale and other tightrock formations and allow access to the oil and gas.

The global economy continues to recover from therecession, so rising demand from industry and consumersshould help stabilize oil and gas prices, even asoutput from shale increases.

The best way to profit from this volatile industry isthrough companies with high-quality reserves and diverseoperations, such as these four....
TEXAS INSTRUMENTS INC. $35 (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $38.5 billion; Price-to-sales ratio: 3.2; Dividend yield: 3.2%; TSINetwork Rating: Average; www.ti.com) continues to benefit from its focus on analog chips, which convert inputs like touch, sound and pressure into electronic signals....
NCR CORP. $33 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 164.4 million; Market cap: $5.4 billion; Price-to-sales ratio: 0.9; No dividends paid; TSINetwork Rating: Average; www.ncr.com) is a leading maker of automated teller machines (ATMs), checkout scanners, cash registers and self-serve kiosks.

In February 2013, the company paid $791 million for Israel-based Retalix, whose software helps retailers manage their sales and track inventories....
Tornadoes and other severe storms recently brought down power lines and caused other damage for these two Midwestern power companies. The extra repair costs will weigh on their earnings. However, regulators typically let utilities recoup these unusual costs through higher power rates....
HONDA MOTOR CO. LTD. ADRs $36 (New York symbol HMC; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.8 billion; Market cap: $64.8 billion; Price-to-sales ratio: 0.7; Dividend yield: 2.4%; TSINetwork Rating: Above Average; www.honda.com) sold 255,540 cars in China in the first five months of 2013....
PFIZER INC. $28 (New York symbol PFE; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 7.1 billion; Market cap: $198.8 billion; Price-to-sales ratio: 3.6; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.pfizer.com) has completed its plan to hand out shares in its 80.2%-owned animalhealth subsidiary to its own shareholders....
VISA INC. $183 (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 792.0 million; Market cap: $144.9 billion; Price-to-sales ratio: 10.9; Dividend yield: 0.7%; TSINetwork Rating: Above Average; www.visa.com) operates the world’s largest electronic payments network....
TIM HORTONS INC. $54 (Toronto symbol THI; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 153.4 million; Market cap: $8.3 billion; Price-to-sales ratio: 2.6; Dividend yield: 1.9%; TSINetwork Rating: Average; www.timhortons.com) is the largest fast-food company in Canada, with 3,453 outlets that mainly serve coffee and donuts. The company also has 808 U.S. stores.

The stock has moved up lately in response to demands from Highfields Capital Management, a U.S.-based activist investment firm that owns 1.5% of Tim Hortons’ shares. Highfields has proposed several ways to boost shareholder value, including slowing Tim Hortons’ expansion in the U.S., where it faces intense competition from larger chains like McDonald’s, Dunkin’ Donuts and Starbucks.


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BOMBARDIER INC. (Toronto symbols BBD.A $4.68 and BBD.B $4.67; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $7.9 billion; Price-to-sales ratio: 0.5; Dividend yield: 2.1%; TSINetwork Rating: Average; www.bombardier.com) plans to begin test flights of its new CSeries jet planes by the end of June 2013.

The company’s plan to test the plane both in flight and using simulators should let it deliver the first CSeries in mid-2014.

The subordinate-voting class B shares are the better choice because of their slightly better liquidity and higher dividend yield.
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SUNCOR ENERGY INC. $31 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.5 billion; Market cap: $46.5 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.6%; TSINetwork Rating: Average; www. suncor.com) has resumed normal operations at its oil refinery in Edmonton after it closed the facility for six weeks for unplanned maintenance.

The shutdown led to minor shortages at the company’s Petro-Canada gas stations in Western Canada. However, it also pushed up gas prices, which helped Suncor offset the lost sales.

Suncor is a buy.

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