SAP

We think conservative investors could hold up to 10% of their portfolios in foreign stocks. One way to do that is to buy carefully chosen exchange traded funds (ETFs) that have an overseas focus. The best ETFs offer very low management fees and well-diversified, tax-efficient portfolios of high quality stocks. Here’s a look at six global ETFs:...

SAPUTO INC. $32 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 390.7 million; Market cap: $12.5 billion; Price-to-sales ratio: 1.3; Dividend yield: 1.6%; TSINetwork Rating: Average; www.saputo.com) earned $155.7 million in its fiscal 2015 second quarter, which ended September 30, 2014. That’s up 16.8% from $133.3 million a year earlier.

Earnings per share gained 14.7%, to $0.39 from $0.34, on more shares outstanding (all per-share amounts adjusted for a 2-for-1 stock split in September 2014).

Sales rose 21.1%, to $2.7 billion from $2.3 billion. That’s mainly because of Warrnambool Cheese and Butter Factory, an Australian maker of milk, cheese, butter and other dairy products; Saputo bought 87.92% of Warrnambool for $449.6 million in January 2014. Higher selling prices for cheese and butter in the U.S. also contributed to the gain.

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SAPUTO INC. $32 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 390.7 million; Market cap: $12.5 billion; Price-to-sales ratio: 1.3; Dividend yield: 1.6%; TSINetwork Rating: Average; www.saputo.com) earned $155.7 million in its fiscal 2015 second quarter, which ended September 30, 2014. That’s up 16.8% from $133.3 million a year earlier. Earnings per share gained 14.7%, to $0.39 from $0.34, on more shares outstanding (all per-share amounts adjusted for a 2-for-1 stock split in September 2014). Sales rose 21.1%, to $2.7 billion from $2.3 billion. That’s mainly because of Warrnambool Cheese and Butter Factory, an Australian maker of milk, cheese, butter and other dairy products; Saputo bought 87.92% of Warrnambool for $449.6 million in January 2014. Higher selling prices for cheese and butter in the U.S. also contributed to the gain....

SAPUTO INC. $65 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 195.8 million; Market cap: $12.7 billion; Price-to-sales ratio: 1.3; Dividend yield: 1.6%; TSINetwork Rating: Average; www.saputo.com) is Canada’s largest producer of dairy products, including milk, butter and cheese. It also operates dairies in the U.S., Australia and Argentina.

In February 2014, Saputo paid $449.6 million for 87.92% of Warrnambool Cheese and Butter Factory, one of Australia’s largest dairy producers.

Warrnambool boosted Saputo’s revenue by 20.6% in its fiscal 2015 first quarter, which ended June 30, 2014, to $2.6 billion from $2.2 billion a year ago. Favourable currency rates and higher cheese and butter prices in the U.S. also contributed to the gain. Earnings rose 6.3%, to $145.3 million, or $0.73 a share. A year earlier, Saputo earned $136.7 million, or $0.69.

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ISHARES MSCI GERMANY FUND $29.36 (New York Exchange symbol EWG; buy or sell through brokers) tracks the stocks in the MSCI Germany Index. This index aims to replicate 85% of the German stock market’s market capitalization. The remaining 15% is unavailable for investment, partly due to limitations on foreign ownership.

The ETF’s top holdings are Bayer (diversified chemicals), 9.3%; Siemens (engineering conglomerate), 8.4%; BASF (chemicals), 8.0%; Daimler (autos), 6.6%; Allianz (insurance), 6.6%; SAP (software), 6.0%; Deutsche Telekom, 4.0%; BMW, 3.3%; and Volkswagen AG, 3.1%.

The fund’s industry breakdown includes: Consumer Discretionary, 21.7%; Financials, 16.1%, Materials, 14.6%; Industrials, 13.7%; Information Technology, 7.0%; Utilities, 4.9%; Telecommunication Services, 4.4%; Health Care, 4.1%; and Consumer Staples, 3.8%.

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Expanding by acquisition always adds risk. That’s because new businesses can come with hidden problems that delay or offset the extra revenue and savings they bring. Particularly severe problems could force the buyer to write down the value of the acquired assets. Buying companies in foreign markets adds even more risk, because it exposes the buyer to unpredictable currency moves and political uncertainty. However, when done right, foreign acquisitions can pay off for years to come, as the five companies below demonstrate....

We think conservative investors could hold up to 10% of their portfolios in foreign stocks. One way to do that is to buy carefully chosen exchange traded funds (ETFs) that have an overseas focus. The best ETFs offer very low management fees and well-diversified, tax-efficient portfolios of highquality stocks. Here’s a look at six global ETFs:...

CANADIAN TIRE CORP., $108.49, Toronto symbol CTC.A, earned $169.9 million in the quarter ended June 28, 2014, up 9.7% from $154.9 million a year earlier. Earnings per share gained 11.0%, to $2.12 from $1.91, on fewer shares outstanding. That easily beat the consensus estimate of $2.02. Overall sales rose 4.8%, to $3.2 billion from $3.0 billion. Strong demand for spring-related goods, such as garden tools, auto supplies and bicycles, increased same-store sales by 2.8% at the 493 Canadian Tire outlets....

NORDION INC., $13.89, Toronto symbol NDN, gained 8% this week in response to a new takeover offer. The company recently accepted a $12.25 U.S.-a-share friendly bid from Sterigenics, a privately held Illinois firm that sterilizes surgical tools, drug ingredients and other materials. However, Nordion now says it has received a $12.50-U.S.-a-share offer from an undisclosed bidder. That prompted Sterigenics to raise its bid to $13.00 U.S....

ISHARES MSCI GERMANY FUND $31.68 (New York Exchange symbol EWG; buy or sell through brokers) tracks the stocks in the MSCI Germany Index.

This index aims to replicate 85% of the total market capitalization of the German stock market. The remaining 15% is unavailable for investment, partly due to limitations on foreign ownership.

The ETF’s top holdings are Bayer (diversified chemicals), 8.8%; Siemens (engineering conglomerate), 8.5%; BASF (chemicals), 8.3%; Daimler (autos), 7.1%; Allianz (insurance), 6.2%; SAP (software), 5.8%; Deutsche Telekom, 3.7%; Deutsche Bank, 3.6%; and BMW, 3.3%.

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