stock pickers

Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific advice on making successful stock market investments. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put it into practice right away. Tip of the week: “In the long run, share buybacks can complement your dividend profits.” Stock market investments have two main ways to distribute their profits to shareholders. They can pay dividends, or they can buy back their own shares. Both dividends and buybacks pay off for investors. Here are 3 reasons why:...

The U.S. consumer sector is highly competitive. Independent stores and smaller chains continue to face rising competition from large discount retailers, like Wal-Mart and Costco. As well, retailers are more exposed to swings in the overall economy than companies in some other sectors, such as utilities. However, aggressive investing in consumer stocks also holds the potential for spectacular gains. To cut your risk and earn higher profits when aggressive investing in the junior retail segment, it’s especially important to focus on chains that can adapt quickly and prosper in the fast-changing retail landscape.

New stores push up this aggressive investing stock’s sales and earnings

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Uranium prices have jumped from around $40 U.S. a pound in March 2010 to a recent high of around $58.50. That’s still well below uranium’s peak of $140 a pound in 2007. But conditions look favourable for higher long-term uranium demand. (In a Stock Pickers Digest hotline, we updated our buy/sell/hold advice on a Canadian uranium explorer whose shares have jumped since early October — and it could go higher. See below for further details on this uranium stock’s prospects.) China and many other emerging countries, such as India and Russia, are increasing their nuclear-power use as they switch from power plants that run on coal and oil. This expansion has sharply pushed up China’s uranium imports to as much as three times last year’s levels. In addition, China recently increased its nuclear-power targets by 60% over the next decade....

WESTJET AIRLINES, $13.10, symbol WJA on Toronto, has reported higher revenue and earnings in the latest quarter. In the three months ended September 30, 2010, WestJet’s revenue rose 14%, to $684.6 million from $600.3 million a year earlier. Earnings jumped 71.8%, to $54 million from $31.4 million. Earnings per share rose 54.2%, to $0.37 from $0.24 on more shares outstanding. This was the company’s 22nd consecutive quarter of profitability. The recovering economy pushed up demand for the company’s flights; that was the main reason for the higher revenue and earnings. WestJet has a new, fuel-efficient fleet and a low cost structure. As well, it serves more cities than many of its competitors. It’s selectively adding to these destinations, and focusing on sunshine destinations where it can add to its earnings by selling customized vacation packages that include flights. These strengths put the company in a good position to continue profiting from the economic recovery....

Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific advice on successful investing. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put it into practice right away. Tip of the week: “Short sellers make money fast when they win, but most wind up losing.” When you sell short, you borrow stock from a broker and then sell it. However, you eventually have to buy back the stock on the market to return it to its owner....

20-20 TECHNOLOGIES INC., $4.00, symbol TWT on Toronto, makes computer-aided design, sales, engineering and manufacturing software for clients in the interior-design and furniture industries. The company has customers in 100 countries, and markets software in 23 languages. The stock jumped 10% this week after a group of 20-20 shareholders led by U.S.-based private equity firm Crescendo Partners requested a special shareholders’ meeting. Together, these investors control 16% of 20-20’s shares. They have said that they want to replace three of the company’s 10 directors with their own nominees. 20-20 has not yet responded to the request....

We continue to recommend a number of companies that are now involved in, or are planning to expand into, green technology and green power production. However, while green stocks appeal to a lot of investors on an emotional and conceptual level, many offer only limited investment potential. That’s because green stocks may need a long time to move from the research or concept stage to profitability. The weak economy has also cast doubt on the future of government subsidies for green stocks. To cut your risk in green stocks, we recommend focusing on established firms that have a sound base of other operations, or whose products have a number of different uses....

WESTJET AIRLINES $11.71 (Toronto symbol WJA; SI Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 138.8 million; Market cap: $1.6 billion; No dividends paid) has signed a code-sharing agreement with Hong Kong’s Cathay Pacific Airlines. Code sharing lets airlines sell seats and move luggage under their own name onto another carrier’s flights. So, WestJet can now offer flights into overseas markets. The next step for WestJet is code sharing with a U.S. airline. The company had a deal with Southwest Airlines in 2008, but it fell through. However, the company is now reportedly in talks with American Airlines....

Aecon Group Inc., $11.96, symbol ARE on Toronto (Shares outstanding: 54.6 million; Market cap: $653.0 million), is one of Canada’s largest construction and infrastructure developers. Aecon and its predecessors built Canadian landmarks, such as the CN Tower, the St. Lawrence Seaway, the Calgary Olympic Oval and the Halifax Shipyards. Aecon started out in Brampton, Ontario, as Armbro Construction in 1929. In 1999, Armbro made a major acquisition when it bought BFC Construction Corporation for $104 million. The new company, Armbro BFC, changed its name to the Aecon Group in 2001. Aecon has four divisions:...

FORTRESS PAPER, $42.27, symbol FTP on Toronto, has entered into agreements to supply dissolving pulp to two companies that make rayon products in China. Dissolving pulp is a type of cellulose mainly used in products made of rayon, including clothing. This fibre has strong growth prospects, particularly in warmer regions with growing economies, such as Asia and South America. Fortress will begin supplying dissolving pulp from its specialty cellulose mill in Quebec in the third quarter of 2011. This mill, which should start up in mid-2011, is expected to be able to produce more than 200,000 air-dried metric tons of dissolving pulp per year....