stock pickers

SASOL LTD. (ADR), $46.17, symbol SSL on New York, has developed a technology to convert coal and natural gas into motor fuels.

The company is now the world’s largest producer of fuel from coal at its facility at Secunda, South Africa. Sasol also produces synthetic fuels from natural gas at plants in Qatar and Nigeria. In addition, the company has substantial chemical-production interests, and produces oil and gas in Africa. Sasol is also South Africa’s third-largest coal producer.

In the fiscal year ended June 30, 2011, Sasol’s revenue rose 16.1%, to $19.5 billion from $16.8 billion a year earlier (all figures in U.S. dollars). Earnings per ADR rose 27.4%, to $4.65 from $3.65. Higher oil prices were the main reason for these gains.

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Alimentation Couche-Tard, symbol ATD.B on Toronto, is the largest convenience-store operator in Canada, with over 2,000 outlets. It is also one of the Canadian investments with the biggest presence in the U.S., at nearly 3,700 U.S. stores. The Canadian stores operate under the Couche-Tard and Mac’s banners, while the U.S. stores mainly use the Circle K brand. Last month, Couche-Tard announced that it has agreed to buy 33 On the Run convenience stores in southern Louisiana from ExxonMobil (symbol XOM on New York) for an undisclosed amount. Couche-Tard will buy the land and buildings for 27 of these locations and will assume or enter into leases for the six remaining sites. According to the company, these stores are all highly visible and are located on well-travelled roads....

MOSAID TECHNOLOGIES INC. $38.90 (Toronto symbol MSD; TSINetwork Rating: Extra Risk) (613-599-9539; www.mosaid.com; Shares outstanding: 12.1 million; Market cap: $466.2 million; Dividend yield: 2.6%) has rejected the $38-a-share, all-cash takeover offer from Wi-LAN Inc. (symbol WIN on Toronto) as too low. Mosaid mainly licenses patented computer chip and telecommunications technology, including patents for technology used in smartphones and laptops. The company has formed a special committee of its board of directors to look at ways to maximize shareholder value. It has also retained Barclays Capital Canada and GMP Securities as financial advisors, and Davies Ward Phillips & Vineberg LLP as legal advisors to the special committee. Mosaid is now trading at $38.90 a share, or 2.4% above Wi-LAN’s bid. This indicates that investors are anticipating that Mosaid will be able to attract a higher offer from Wi-LAN or another bidder....

Whether you’re a new or experienced investor, professional investment advice can boost your returns. A company’s earnings are different from an employee’s salary. Earnings are indefinite and subject to revision, even years later. Companies have to estimate many costs, and make yearly write-offs against earnings, according to arbitrary rules. Here’s some investment advice to pay special attention to when examining a company’s earnings statement:...

Cameco Corp., symbol CCO on Toronto, has launched a hostile takeover bid for Hathor Exploration (symbol HAT on Toronto). Cameco is offering $520 million, or $3.75 a share, for this uranium exploration company. Hathor’s main exploration properties are on the east side of the Athabasca Basin. This region in northern Saskatchewan and Alberta contains all of Canada’s producing uranium mines, and accounts for 23% of the global production of uranium. Right now, Hathor is exploring for uranium at its Midwest Northeast project, which is close to producing properties that are currently owned by Cameco and AREVA of France....

IAMGOLD CORP., $22.39, symbol IMG on Toronto, owns the Niobec niobium mine in Quebec. Niobium is a rare metal that when used as an additive makes steel stronger, more heat resistant and easier to weld. Niobium is widely used in automobiles and oil and gas pipes. Right now, China accounts for about 25% of worldwide niobium consumption. IAMGold’s Niobec mine produces about 8% of the world’s niobium supply. The company is considering selling a 10% to 20% stake in Niobec, and using the proceeds to fund the mine’s expansion. After that, the company will consider selling more of the mine. IAMGold’s plan for Niobec looks especially attractive this week, after a consortium of five state-owned Chinese companies announced that they are buying 15% of the world’s largest niobium producer for $1.95 billion in cash. Brazil’s Companhia Brasileira de Metalurgia e Mineraçào, or CBMM, produces more than 80% of the world’s niobium supply....

CRITICALCONTROL SOLUTIONS, symbol CCZ on Toronto, sells services and software that help businesses better manage, access and store their information. CriticalControl gets about 60% of its revenue from clients in the oil and gas industry, followed by government (20%), health care (10%) and finance and retail (10%). The company also makes traditional dry flow meters for natural gas wells, and electronic flow measurement devices (EFMs) for shale-gas drilling. In the three months ended June 30, 2011 CriticalControl’s revenue fell 2.0%, to $12.5 million from $12.8 million a year earlier. Revenue at the tech stock’s Service Bureau Operations division rose 11%, while revenue rose 4% at the Canadian Energy Services division....

Toromont Industries Ltd., symbol TIH on Toronto, is a distributor of a broad range of Caterpillar and industrial equipment. As well, its CIMCO division makes refrigeration systems. Toromont is one of the growth stocks we analyze in Stock Pickers Digest. In the three months ended June 30, 2011, this Canadian stock pick’s revenue rose 9.3% to $344.6 million from $315.3 million a year earlier, due to higher new equipment sales and increased rental revenue....

All resource stocks are subject to the risk that comes with the rise and fall of commodity prices. But, depending on where they do business, some also face a second challenge: political risk. Among Canadian mining stocks, Sherritt International (Toronto symbol S) is prominently identified with political risk due to its extensive involvement in Cuba. The company’s Cuban operations are profitable, but it is expanding into other countries to lessen that risk. Sherritt is a diversified natural resource company that produces nickel, cobalt, thermal coal, oil and gas. It also manages 376 megawatts of power-generation capacity in Cuba....

CAMECO CORP., $22.23, symbol CCO on Toronto, has launched a hostile takeover bid for Hathor Exploration (symbol HAT on Toronto). Cameco is offering $520 million, or $3.75 a share. Hathor’s main exploration properties are on the east side of the Athabasca Basin. This region contains all of Canada’s producing uranium mines, and accounts for 23% of global production. Right now, Hathor is exploring for uranium at its Midwest Northeast project, which is close to producing properties owned by Cameco and AREVA of France....