wall street

Commodity Investments
Oil and gas industry. Work of refinery petrochemical plant. Oil reservoir and storage tank of mineral oil. Blue sky above factory
Spade
Every Tuesday we bring you “Best Canadian Stocks.” You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You’ll read about stocks making moves you should know about, from coverage in one of our three newsletters featuring Canadian stocks—The Successful Investor, Stock Pickers Digest and Canadian Wealth Advisor.

ShawCor makes coatings for oil and natural gas pipelines. Its shares have fallen with the recent drop in the price of oil. However, it is a leader in its niche industry and should rebound strongly when energy prices recover. The drop also means the stock now trades at an attractive multiple to its projected earnings.

SHAWCOR LTD. (Toronto symbol SCL; www.shawcor.com) makes sealants and coatings that keep oil and natural gas pipelines from rusting. It also makes industrial products, like electrical wire and protective sheaths.

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Investment Counsellor
Every Monday we feature “A Stock to Sell” as our daily post. With every stock or investment we recommend as a sell, we give you a full explanation of why we advise against investing in it at this time.

Exchange Income Corp. (symbol EIF on Toronto; www.exchangeincomecorp.ca) operates in two main areas: aviation and manufacturing.

The aviation business (63% of revenue) includes regional airlines Perimeter Aviation, Keewatin Air, Calm Air International, Bearskin Lake Air Service, Custom Helicopters and Regional One. These airlines serve communities in Manitoba, Ontario and Nunavut.

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TIM HORTONS INC., $85.92, New York symbol THI, has completed its merger with U.S.-based BURGER KING WORLDWIDE INC., $35.50, New York symbol BKW.

On Monday, December 15, 2014, the combined company, called Restaurant Brands International Inc., will begin trading on the Toronto and New York exchanges under the QSR symbol.

Restaurant Brands is the world’s third-largest fast-food restaurant operator, after McDonald’s and Yum Brands, with 14,000 Burger King restaurants and 4,590 Tim Hortons outlets in 100 countries. In all, these locations have annual sales of over $23 billion.

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Stock Investing
Every Thursday we bring you one of our best U.S. stock picks. You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You will read about stocks making moves you should know about, most often from coverage in our newsletter on U.S. investing, Wall Street Stock Forecaster.

TUPPERWARE BRANDS CORP. (New York symbol TUP; www.tupperwarebrands.com) makes household goods, mainly plastic food and beverage containers, as well as cosmetics and fragrances.

In the quarter ended September 27, 2014, Tupperware’s sales fell 2.4%, to $588.7 million from $603.2 million a year earlier.

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Capital Gains Tax
If you’re looking for stock-market bargains, December is the best time of year to find them.

Here’s why: Investors love to sell stocks for a profit, but they hate to sell at a loss. That’s why many investors spread their selling-for-a-profit throughout the year, while holding on to stocks that have dropped.

Toward year-end, it occurs to these investors that they’ll have to pay taxes on their capital gains, regardless of whether they made money overall. This leads some investors to dump their losers near year-end, simply to establish a capital loss for tax purposes, to offset a capital gain.

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Lockheed Martin Corp., $189.85, symbol LMT on New York (Shares outstanding: 315.9 million; Market cap: $60.0 billion; www.lockheedmartin.com), is the world’s largest defence contractor. In 2013, the U.S. government supplied 82% of its revenue. Lockheed has five divisions:
  • Aeronautics (32% of revenue) makes and services military aircraft, including the F-16, F-22 and F-35 fighter jets, as well as C-130 transport planes;
  • Space Systems (18%) makes rockets and satellites;
  • Information Systems and Global Solutions (18%) offers data and audio/visual communication systems for governments and corporate clients;
  • Missiles and Fire Control (17%) makes ballistic missiles and laser-guided bombs, as well as control systems for nuclear-powered vessels and nuclear plants;
  • Mission Systems and Training (15%) offers control systems for military aircraft and ships. It also makes flight simulators and other training gear.
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TIM HORTONS INC., $84.91, New York symbol THI, shareholders will vote on the friendly takeover offer from BURGER KING WORLDWIDE INC., $34.81, New York symbol BKW, on Tuesday, December 9, 2014. If the deal is approved, Tim Hortons investors will have a number of options: They can sell their shares on the New York exchange and receive the current trading price of $84.91 (less brokerage commissions). If they don’t do that, they can opt for one of the three choices below by notifying their brokers no later than 5:00 p.m. ET on Tuesday, December 9, 2014....
Investment Counsellor
Every Thursday we bring you one of our best U.S. stock picks. You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You will read about stocks making moves you should know about, most often from coverage in our newsletter on U.S. investing, Wall Street Stock Forecaster.

VISA INC. (New York symbol V; www.visa.com) operates the world’s largest electronic payments network, through which it processes credit, debit, prepaid and commercial transactions.

Visa gets most of its revenue from fees it charges the card issuers and merchants that use its network. It bases these fees on transaction volumes and other factors. The banks that issue the cards are responsible for evaluating customer creditworthiness and collecting payments, not Visa.

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HEWLETT-PACKARD CO., $39.06, New York symbol HPQ, rose 5% this week after reporting quarterly earnings that matched the consensus estimate. In Hewlett’s fiscal 2014 fourth quarter, which ended October 31, 2014, its earnings rose 2.8%, to $2.01 billion from $1.96 billion a year earlier. Earnings per share gained 5.0%, to $1.06 from $1.01, on fewer shares outstanding. These figures exclude costs related to Hewlett’s multi-year restructuring plan, which includes merging its personal computer and printer divisions, simplifying its product lines and cutting jobs. Revenue fell 2.5%, to $28.4 billion from $29.1 billion, missing the consensus forecast of $28.8 billion....
Investment Advice
YUNUS ARAKON
Every Thursday we bring you our best U.S. stock picks. You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You will read about stocks making moves you should know about, most often from coverage in our newsletter on U.S. investing, Wall Street Stock Forecaster.

IBM has a long history of drifting in and out of investor favour, mainly due to fear that new technologies will put it out of business.

However, IBM also has long history of shifting out of slowing businesses into faster-growing fields. For example, as computer prices fell in the 1990s, IBM expanded its more-profitable software and consulting operations. The company later unloaded its struggling personal computer operations, and is now selling its low-end server business. It will invest the proceeds in areas with better long-term potential, such as cloud computing and analytics software.

In addition, IBM’s well-known brand and global salesforce continue to give it a big advantage, particularly in developing countries.

INTERNATIONAL BUSINESS MACHINES CORP. (New York symbol IBM; www.ibm.com) started up in 1911 making machines that processed U.S. census data, as well as other industrial equipment such as time clocks and scales.

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