The Successful Investor Hotline – Friday, June 11, 2010

Article Excerpt

SAPUTO INC., $29.71, Toronto symbol SAP, earned $382.7 million, or $1.83 a share, in the fiscal year ended March 31, 2010. That’s up 37.2% from $278.9 million, or $1.34 a share, in the prior year. The latest earnings matched the consensus estimate. Revenue rose just 0.3% during the year, to $5.81 billion from $5.79 billion. The company raised its cheese prices during the year. However, the higher Canadian dollar hurt the contribution of Saputo’s U.S. dairy operations, which account for 33% of its revenue. Saputo plans to finish consolidating its various southern Ontario warehouses into a single new facility later this year. That should lower its costs by $6.5 million a year, starting in 2011. These savings will help the company offset rising prices for milk, which is a key ingredient in cheese making. Saputo is a buy. TRANSCONTINENTAL INC., $13.74, Toronto symbol TCL.A, earned $34.3 million in its second quarter, which ended April 30, 2010. That’s up 14.3% from $30.0 million…