telus

AMAZON.COM INC., $95.96, symbol AMZN on Nasdaq, is now selling its Kindle e-book reader in over 100 countries. The reader will ship on October 19, and will cost $279 U.S. Canada has not yet been included in the expansion. That’s because Amazon has not reached a deal with a wireless carrier, such as BCE, Rogers or Telus. Kindle users can download files from Amazon’s Kindle store, which contains over 350,000 books. Most bestsellers and new releases are just $9.99 U.S. each. International users will pay an extra $1.99 U.S. Users can also download leading U.S. and international magazines and newspapers, as well as over 1,200 blogs....

TELUS CORP. (Toronto symbols T $34 and T.A $32; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 318 million; Market cap: $10.5 billion; Price-to-sales ratio: 1.1; SI Rating: Above Average) is Canada’s second-largest telephone company after BCE Inc. (Toronto symbol BCE). Telus has been expanding its wireless operations over the past few years. As a result, the company now gets 55% of its earnings from its 6.3 million wireless subscribers across Canada. Telus has 37% of the wireless market. Market leader Rogers Communications Inc. (Toronto symbol RCI.B) has 48%. The remaining 45% of Telus’s earnings comes from its traditional phone business, which has 4.1 million...

Three new wireless providers (Globalive, DAVE Wireless and Public Mobile) will probably enter the Canadian market next year. This will undoubtedly put pressure on Canada’s three existing wireless carriers, including Telus. However, Telus has dealt with strong competition from wireless and cable companies for years. For example, last year it launched Koodo, a new discount cellphone service, to attract younger users. The company has also upgraded its networks to handle a wider variety of cellphones, including Apple’s hugely popular iPhone. New TV services should also help Telus hang on to many of its traditional phone and wireless customers. Moreover, Telus’s high dividend yield should attract more investors as income trusts convert to corporations, or cut their distributions once Ottawa starts taxing them in 2011....

TELUS CORP. $33.31 (Toronto symbol T.A; Shares outstanding: 335.6 million; Market cap: $11.1 billion; SI Rating: Above Average) has purchased privately owned Black’s Photo Corp. Black’s owns and operates 113 stores that sell film, cameras and other photographic equipment. Telus plans to sell its wireless phones through these stores. As well, most cellphones now come with built-in cameras, so Black’s could help Telus tap into rising demand for digital-photo printing and other photo-related products and services. Telus paid $28 million for Black’s, which is just 11% of its second-quarter earnings of $244 million, or $0.77 a share....

ENCANA CORP., $63.52, Toronto symbol ECA, rose 7% on Friday after the company announced that it will split itself into two separate companies. One will keep the EnCana name, and will focus on unconventional natural gas. The other will operate as Cenovus Energy Inc., and will specialize in oil-sands projects, oil refineries and conventional natural gas. The new EnCana will account for about two-thirds of the company’s current production and reserves. Cenovus will account for the remaining third. EnCana had hoped to complete the split in early 2009, but the stock-market decline and tight credit markets would have made it difficult for the two new, smaller companies to raise capital to fund new projects. Now that conditions have improved, EnCana has decided to go ahead with the split....

TELUS CORP. (Toronto symbols T $34 and T.A $33; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 317.7 million; Market cap: $10.8 billion; Price-to-sales ratio: 1.1; SI Rating: Above Average) has purchased privately owned Black’s Photo Corp., which operates 113 stores that sell cameras, film and other photographic equipment. Telus plans to sell its cellphones and wireless services through Black’s. This looks like a good fit, as more consumers are using their cellphones to take pictures and videos. Adding Black’s will also help Telus compete with BCE, which recently bought consumer-electronics retailer The Source in an effort to attract new wireless customers. The company paid just $28 million for Black’s, which is equal to 11% of the $244 million, or $0.77 a share, that it earned in the three months ended June 30, 2009. Telus is a buy. The non-voting “A” shares are the better choice.

IMPERIAL OIL LTD. $40 earned $0.25 a share in the three months ended June 30, 2009. That’s down 80.5% from $1.28 a year earlier. The drop was mainly caused by falling crude-oil and natural-gas prices. As well, its Cold Lake and 25%-owned Syncrude oil-sands projects were closed for maintenance during...

ISHARES DIVIDEND INDEX FUND $16.92 (Toronto symbol XDV; buy or sell through a broker) currently holds the 30 highest yielding Canadian stocks. Stocks are included in the index based on their dividend growth, yield and average payout ratio. The weight of any one stock in the fund is limited to 10% of the fund’s assets. iShares Dividend Index Fund’s MER is 0.50%. The fund now yields 4.8%. The fund’s top holdings are: National Bank of Canada, 8.9%; Bank of Montreal, 8.0%; CIBC at 7.2%; TD Bank, 6.3%; IGM Financial, 5.0%; Bank of Nova Scotia, 5.0%; Royal Bank of Canada, 4.9%; Manitoba Telecom 4.6%; TMX Group, 3.6%; Sun Life Financial, 3.2%; Power Financial Corp., 3.2%; Telus Corp., 3.1%; and Russel Metals, 2.8%....

TELUS CORP. $30 (Toronto symbol T.A; Shares outstanding: 335.6 million; Market cap: $10.1 billion; SI Rating: Above Average) has won a $31.5-million expansion of its contract with the Montreal Regional Health Authority. Telus will speed up the conversion of patient records from paper to electronic form. This is a small sum next to Telus’s $9.7 billion in annual revenue, but electronic record conversion is a fast-growing field. Telus launched a new division in late 2008 called “Telus Health Solutions”....

BANK OF NOVA SCOTIA $40 reported record revenue in its latest quarter, despite the recession. Revenue rose 13.4%, to $3.6 billion from $3.2 billion a year earlier. However, earnings per share fell 16.5%, to $0.81 from $0.97, as loan-loss provisions jumped 219.6%. Still, the bank is in a good position to increase its profits as the economy improves. Best Buy. ROYAL BANK OF CANADA $46 lost $50 million, or $0.07 a share, in the three months ended April 30, 2009. This figure includes a $1-billion writedown of goodwill related to the American banks that Royal bought over the past few years. The slow U.S. housing market and economy have driven down the goodwill related to these purchases. Without this writedown, Royal would have earned $950 million, up 2.4% from $928 million a year earlier. Per-share earnings fell 10%, to $0.63 from $0.70, on more shares outstanding. Buy. TELUS CORP. $32 has won a $31.5-million expansion of its contract with the Montreal Regional Health Authority. Telus will speed up the conversion of patient records from paper to electronic form. This is a small sum next to Telus’s $9.7 billion in annual revenue, but electronic record conversion is a fast-growing field. Buy.