price to sales ratio

INTEL CORP. $25 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.0 billion; Market cap: $125.0 billion; Price-to-sales ratio: 2.3; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.intel.com) saw its revenue rise 3.6% in the three months ended June 30, 2012, to $13.5 billion from $13.0 billion a year earlier. However, earnings fell 5.0%, to $3.0 billion from $3.1 billion. Earnings per share were unchanged at $0.57, due to fewer shares outstanding. The company continues to invest heavily in new plants and chipmaking technology. That has hurt its earnings, but these investments will help Intel sell more chips to makers of tablet computers and other mobile devices. Intel’s advanced technologies will also give it an edge over other chipmakers. Intel is a buy.

CINTAS CORP. $38 (Nasdaq symbol CTAS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 126.5 million; Market cap: $4.8 billion; Price-to-sales ratio: 1.2; Dividend yield: 1.4%; TSINetwork Rating: Average; www.cintas.com) earned $297.6 million in its 2012 fiscal year, which ended May 31, 2012. That’s up 20.5% from $247.0 million in 2011. Earnings per share jumped 35.1%, to $2.27 from $1.68, on fewer shares outstanding. Revenue rose 7.7% in 2012, to a record $4.1 billion from $3.8 billion. If you exclude contributions from acquisitions, revenue still rose 6.1%. The company continues to see rising demand for the uniforms and services, such as document shredding, that it sells to businesses. It is also doing a good job of controlling its costs....

GENERAL ELECTRIC CO. $20 (New York symbol GE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 10.6 billion; Market cap: $212.0 billion; Price-to-sales ratio: 1.5; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.ge.com) plans to split its energy-products division into three new businesses: GE Power and Water (turbines, generators); GE Oil and Gas (products for onshore and offshore energy producers); and GE Energy Management (power-transmission equipment). This reorganization should make it easier for these new divisions to take advantage of new opportunities. It should also save GE $200 million to $300 million by 2014. To put these savings in context, GE earned $4.0 billion in the three months ended June 30, 2012. That’s up 6.9% from $3.75 billion a year earlier. Earnings per share rose 11.8%, to $0.38 from $0.34, on fewer shares outstanding. Revenue rose 2.5%, to $36.5 billion from $35.6 billion....

AMERICAN EXPRESS CO. $56 (New York symbol AXP, Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.1 billion; Market cap: $61.6 billion; Price-to-sales ratio: 1.9; Dividend yield: 1.4%; TSINetwork Rating: Average; www.americanexpress.com) is best known for its American Express charge and credit cards. It also sells travel-related services, such as hotel bookings, insurance and traveller’s cheques. Amex gets most of its revenue from the fees it charges merchants who accept its cards. It also earns interest on the outstanding balances of its cardholders. Being a lender adds to its risk, particularly if cardholders fall behind on their payments and Amex has to write off these loans. However, Amex clients tend to have above-average incomes and good credit histories. The company has also tightened its lending policies in the past few years....

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ ENCANA CORP. $20 (Toronto symbol ECA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 736.3 million; Market cap: $14.7 billion; Price-to-sales ratio: 1.6; Dividend yield: 4.1%; TSINetwork Rating: Average; www.encana.com) is one of North America’s largest natural gas producers. Its reserves should last over 11 years.

The company took its present form on December 1, 2009, after the old EnCana Corp. split itself into two new companies: the new Encana, which focuses on natural gas, and Cenovus Energy (Toronto symbol CVE), which specializes in oil sands projects, oil refineries and conventional natural gas.

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CANADIAN PACIFIC RAILWAY LTD. $74 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 170.9 million; Market cap: $12.6 billion; Price-to-sales ratio: 2.3; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.cpr.ca) has signed a long-term deal with U.S. Silica Holdings Inc. (New York symbol SLCA), a leading maker of specialized sand.

Oil and gas exploration companies pump this sand, along with water and other chemicals, into shale rock formations. This fractures the rock and releases the oil and gas.

Under the terms of this multi-year deal, Silica will use CP trains to ship sand from its new Sparta, Wisconsin facility to its customers. CP did not say how much this deal is worth, but it should help the company profit from rising production of shale oil in the Bakken area, which covers parts of Montana, North Dakota and Saskatchewan.

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SUNCOR ENERGY INC. $29 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.6 billion; Market cap: $46.4 billion; Price-to-sales ratio: 1.1; Dividend yield: 1.8%; TSINetwork Rating: Average; www.suncor.com) produced an average of 343,000 barrels of oil per day at its oil sands projects in June 2012. That’s down 0.9% from 346,000 barrels in May 2012.

The company expects its oil sands production for all of 2012 to range from 325,000 to 355,000 barrels a day. If you include conventional oil and natural gas, Suncor should produce 530,000 to 580,000 barrels a day in 2012. The midpoint of that range is 1.6% higher than its average 2011 production of 546,000 barrels a day.

Suncor is a buy.

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DUNDEE CORP. $22 (Toronto symbol DC.A; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 55.0 million; Market cap: $1.2 billion; Price-to-sales ratio: 1.7; No dividends paid; TSINetwork Rating: Average; www.dundeecorp.com) is a holding company with subsidiaries in wealth management, real estate, resources and agriculture.

In the three months ended March 31, 2012, Dundee earned $32.5 million, up 129.2% from $14.2 million a year earlier. Per share earnings jumped 211.8%, to $0.53 from $0.17, on fewer shares outstanding.

The increase resulted from much higher returns on the company’s various investments during the latest quarter: $21.6 million compared to just $2.3 million a year ago. Dundee’s revenue rose 11.4%, to $131.3 million from $117.8 million.

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POTASH CORP. OF SASKATCHEWAN $45 (Toronto symbol POT; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 858.9 million; Market cap: $38.7 billion; Price-to-sales ratio: 4.5; Dividend yield: 1.3%; TSINetwork Rating: Average; www.potashcorp.com) has gained roughly 17% since the middle of June 2012. That’s because hot, dry weather in the U.S. could reduce this year’s corn harvest.

In response, farmers are applying more fertilizer to boost their crop yields. As well, corn needs more potash than other crops.

The spike in demand has pushed up potash prices. Moreover, the long-term outlook for potash and other fertilizers remains bright, mainly due to rising demand for better food in fast-growing countries such as China, India and Brazil.

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THOMSON REUTERS CORP. $29 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 829.2 million; Market cap: $24.0 billion; Price-to-sales ratio: 1.7; Dividend yield: 4.5%; TSINetwork Rating: Above Average; www.thomsonreuters.com) is buying FX Alliance Inc. (New York symbol FX), which sells foreign exchange data to banks, portfolio managers and corporations. When the deal closes in the next weeks, it will strengthen Thomson’s electronic-data products.

The $625-million U.S. price is equal to 37% of the $1.7 billion U.S., or $1.98 U.S. a share, that Thomson earned in 2011.

Thomson Reuters is a buy.

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