price to sales ratio
SHAWCOR LTD. $43 (Toronto symbol SCL.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 70.2 million; Market cap: $3.0 billion; Price-to-sales ratio: 2.4; Dividend yield: 0.9%; TSINetwork Rating: Average; www.shawcor.com) jumped over 20% in early September after it announced that it will conduct a strategic review of its operations. This could lead to a sale of the company. ShawCor makes sealants and coatings that keep oil and natural gas pipelines from rusting. It also manufactures industrial products, such as electrical wire and protective sheaths. However, there is no deadline for this review, so any takeover offer could still be months away....
ENBRIDGE INC. $38 (Toronto symbol ENB; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 797.1 million; Market cap: $30.3 billion; Price-to-sales ratio: 1.3; Dividend yield: 3.0%; TSINetwork Rating: Above Average; www.enbridge.com) plans to spend $600 million to expand its natural gas distribution system in the Greater Toronto Area. To put this figure in context, Enbridge earned $653 million, or $0.86 a share, in the first half of 2012. These upgrades will help the company sell more gas in the fast-growing communities outside Toronto. Enbridge aims to complete this project in 2015. Enbridge is a buy.
FINNING INTERNATIONAL INC. $24 (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 171.9 million; Market cap: $4.1 billion; Price-to-sales ratio: 0.6; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.finning.com) sells, rents and repairs heavy equipment, such as tractors, bulldozers and trucks, made by Caterpillar Inc. (New York symbol CAT). Finning’s major customers are in the mining, forest products and construction industries in Western Canada, the U.K. and South America. In July 2011, Caterpillar bought Milwaukee based Bucyrus International, which makes equipment that is used for mining and in the development of the oil sands. In May 2012, Finning paid Caterpillar $305.8 million U.S. for Bucyrus’s distribution and support businesses in South America and the U.K. The company will buy Bucyrus’s Canadian operations for $159.2 million U.S. in October 2012....
These two leading supermarket chains continue to expand into new areas. That helps them compete with big U.S. retailers like Wal-Mart and Target, which are aggressively expanding in Canada and selling more groceries. LOBLAW COMPANIES LTD. $35 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 281.4 million; Market cap: $9.8 billion; Price-to-sales ratio: 0.3; Dividend yield: 2.4%; TSINetwork Rating: Above Average; www.loblaw.ca) recently formed a partnership with J.C. Penney (New York symbol JCP). Under this deal, Loblaw will build Joe Fresh casual-clothing boutiques inside 700 of Penney’s 1,100 department stores in the U.S. These outlets should open in April 2013. Penney will also sell Joe Fresh products through its website....
RIOCAN REAL ESTATE INVESTMENT TRUST $28 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 263.4 million; Market cap: $7.4 billion; Price-to-sales ratio: 5.2; Dividend yield: 4.9%; TSINetwork Rating: Average; www.riocan.com) is ending its joint venture with Cedar Shopping Centers (New York symbol CDR). RioCan holds 80% of this venture, which owns 22 malls in the U.S. Under the terms of the deal, RioCan will buy Cedar’s 20% stake in 21 malls, while Cedar will buy RioCan’s 80% stake in another mall. RioCan will pay Cedar $39.0 million. That’s equal to 37% of its second quarter cash flow of $106.0 million, or $0.37 a unit. RioCan is a buy.
BANK OF NOVA SCOTIA $53 (Toronto symbol BNS; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.1 billion; Market cap: $58.3 billion; Price-to-sales ratio: 2.2; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.scotiabank.com) continues to build on its extensive international operations. It recently announced deals with China’s Bank of Xi’an and India’s Kotak Mahindra Bank that make it easier for immigrants, international students and foreign workers to transfer their accounts to Bank of Nova Scotia’s Canadian branches. Once they arrive in Canada, these clients can also apply for credit cards and other services. Bank of Nova Scotia is a buy. TIM HORTONS INC. $50 (Toronto symbol THI; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 154.9 million; Market cap: $7.7 billion; Price-to-sales ratio: 2.6; Dividend yield: 1.7%; TSINetwork Rating: Average; www.timhortons.com) aims to take advantage of fastgrowing interest in home coffee systems....
TORONTO-DOMINION BANK $81 (Toronto symbol TD; Conservative Growth Portfolio, Finance sector; Shares outstanding: 911.7 million; Market cap: $73.8 billion; Price-to-sales ratio: 2.5; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.td.com) earned $1.8 billion in the quarter ended July 31, 2012. That’s up 11.3% from $1.6 billion a year earlier. Earnings per share rose 9.1%, to $1.91 from $1.75, on more shares outstanding. Revenue rose 8.5%, to $5.8 billion from $5.4 billion. Low interest rates continue to spur loan demand. As well, last year’s purchases of MBNA’s Canadian credit card operations and Chrysler Financial, which provides car loans to buyers of Chrysler vehicles, also contributed to the higher earnings. The bank set aside $438 million to cover bad loans in the latest quarter, up 15.3% from $380 million. However, that’s mainly due to the extra loans from the MBNA purchase....
GREAT-WEST LIFECO INC. $22 (Toronto symbol GWO; Conservative Growth Portfolio, Finance sector; Shares outstanding: 949.8 million; Market cap: $20.9 billion; Price-to-sales ratio: 0.7; Dividend Yield: 5.6%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is Canada’s largest insurance company, with $523.6 billion of assets under administration. It also sells mutual funds and retirement planning and wealth management services. Power Financial Corp. (Toronto symbol PFC) owns 68.2% of Great-West. Top brands are a big plus In Canada, the company sells its products under several well-known banners, including Great West Life, Canada Life and Freedom 55. The Canadian division supplies 51% of Great-West’s earnings....
ROYAL BANK OF CANADA $53 (Toronto symbol RY; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.4 billion; Market cap: $74.2 billion; Price-to-sales ratio: 2.7; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.rbc.com) is Canada’s largest bank, with $800.4 billion of assets.
The bank has come under fire recently over allegations that it colluded with other global banks to manipulate the benchmark London Interbank Offered Rate (LIBOR). Banks around the world base their own lending rates on LIBOR. Royal has denied these charges.
Royal also continues to cut its exposure to the PIIGS countries. As of April 30, 2012, it held $1.2 billion of loans and securities from these nations. That’s down from $1.4 billion on October 31, 2011.
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The bank has come under fire recently over allegations that it colluded with other global banks to manipulate the benchmark London Interbank Offered Rate (LIBOR). Banks around the world base their own lending rates on LIBOR. Royal has denied these charges.
Royal also continues to cut its exposure to the PIIGS countries. As of April 30, 2012, it held $1.2 billion of loans and securities from these nations. That’s down from $1.4 billion on October 31, 2011.
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POTASH CORP. OF SASKATCHEWAN $42 (Toronto symbol POT; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 859.1 million; Market cap: $36.1 billion; Price-to-sales ratio: 4.2; Dividend yield: 1.3%; TSINetwork Rating: Average; www.potashcorp.com) is the world’s largest fertilizer producer....