WELLS FARGO & CO. $27 (New York symbol WFC; Conservative Growth Portfolio, Finance sector; Shares outstanding: 5.3 billion; Market cap: $143.1 billion; Price-to-sales ratio: 1.6; Dividend yield: 0.7%; TSINetwork Rating: Average; www.wellsfargo.com) has agreed to settle a lawsuit stemming from its 2008 purchase of troubled banking firm Wachovia Corp. Citigroup Inc. (New York symbol C) had originally agreed to buy Wachovia with the help of U.S. banking regulators. However, Wachovia accepted a higher offer from Wells Fargo. Citigroup claimed that Wachovia broke an exclusivity deal that prevented it from negotiating with other banks. Wells Fargo will now pay Citigroup $100 million. That’s small next to the $3.2 billion, or $0.60 a share, that Wells Fargo earned in the three months ended September 30, 2010....

DIEBOLD INC. $33 (New York symbol DBD; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 65.7 million; Market cap: $2.2 billion; Price-to-sales ratio: 0.8; Dividend yield: 3.3%; TSINetwork Rating: Average; www.diebold.com) is a leading maker of automated teller machines (ATMs). It also makes safes, vaults and building-security systems. The recent financial crisis forced banks to conserve cash to meet stricter capital requirements. That left them with less to spend on ATMs. However, Diebold continues to cut its reliance on ATMs and other equipment by selling more services to its banking clients. Examples include managing ATM networks, processing customer transactions and upgrading software. Services now account for 55% of Diebold’s revenue.

Overseas focus helps cut risk

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TUPPERWARE BRANDS CORP. $48 (www.tupperwarebrands.com) has raised its quarterly dividend by 20.0%, to $0.30 a share from $0.25. The new annual rate of $1.20 yields 2.5%, and the stock now trades at just 13.3 times its likely 2010 earnings. Best Buy. CONAGRA FOODS INC. $21 (www.conagra.com) earned $0.34 a share in the three months ended August 31, 2010. That’s down 10.5% from $0.38 a year earlier. The company is spending more on advertising and promotions. This was the main reason for the decline. However, this spending should spur sales, particularly as ConAgra launches new products, such as low-sodium soups. As well, the company raised its quarterly dividend by 15.0%, to $0.23 a share from $0.20. The new annual rate of $0.92 yields 4.4%. Best Buy. STANLEY BLACK & DECKER INC. $61 (www.stanleyblackanddecker.com) earned $164.6 million in the three months ended September 30, 2010, up 166.3% from $61.8 million a year earlier. That’s mainly because of toolmaker Black & Decker, which Stanley bought in March 2010 for stock. Because of the extra shares outstanding, earnings per share rose 26.0% in the quarter, to $0.97 from $0.77. Big mergers such as this rarely go as smoothly as planned, but Stanley is making good progress absorbing this new business. Buy.

DEL MONTE FOODS CO., $17.51, New York symbol DLM, jumped 11.5% on Friday. That’s because of media reports that private equity firm KKR & Co. (New York symbol KKR) will soon launch a takeover bid for the company. KKR’s offer could be as much as $18.50 a share. Del Monte makes canned fruits, vegetables, sauces and soups. It also makes pet food under the Meow Mix, 9Lives and Milk-Bone brands. Even if an offer fails to materialize, we still like Del Monte’s long-term prospects. Cost cuts continue to increase its profitability. As well, it has plenty of room to expand in developing countries. Right now, international markets account for just 6% of its sales....

LEON’S FURNITURE LTD. $13.45, symbol LNF on Toronto, reported that its sales fell 4.2% in the three months ended September 30, 2010, to $179.5 million from $187.4 million a year earlier. Earnings per share rose 18.2%, to $0.26 from $0.22. The stronger Canadian dollar was the main reason why Leon’s earnings rose despite the lower sales. The higher dollar cuts the cost of furniture the company imports. Leon’s was also able to lower some of its other costs. Right now, the company owns 39 of its stores, and franchisees operate 28. Leon’s plans to speed up its expansion by opening roughly five new stores a year over the next five years....

WESTJET AIRLINES $13 (Toronto symbol WJA; SI Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 139.8 million; Market cap: $1.8 billion; Dividend yield 1.5%) serves 71 destinations in North America and the Caribbean. The company operates a fleet of 90 Boeing Next-Generation 737s. These planes feature more legroom, leather seats and television screens built into the back of each seat. But most important, the planes are roughly 30% more fuel-efficient than older planes. And WestJet is scheduled to receive 45 additional 737s through 2017. 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 WestJet’s 22nd consecutive quarter of profitability. The recovering economy pushed up demand for its flights; that was the main reason for the higher revenue and earnings. WestJet’s $906.6 million of debt is 50.4% of its $1.8-billion market cap. However, it holds cash of $1.2 billion, or $8.65 a share....

Reputation and employee commitment can be a great hidden asset, especially in a competitive business like air travel. WestJet has a hidden asset in its non-union workforce. Many flyers find Westjet provides friendlier service than they get from unionized airlines. However, in addition to the lack of a union, WestJet also gains from the fact that most of its employees are also shareholders. Right now, 84% of active employees participate in its share-ownership plan. (Employees can contribute up to 20% of their pay to buy shares. WestJet matches their contributions, dollar for dollar.) Employees own roughly 2% of the company....

TRIMBLE NAVIGATION $35.95 (Nasdaq symbol TRMB; SI Rating: Speculative) (408-481-6914; www.trimble.com; Shares outstanding: 119.2 million; Market cap: $4.3 billion; No dividends paid) makes global positioning system (GPS) devices and technology for four main markets: 1) Engineering and construction accounts for the largest share (55%) of Trimble’s sales. 2) Agricultural GPS products (25% of sales) help farmers cut costs and increase yields. For example, GPS allows for more precise plowing, seeding and fertilizing, even at night....

LOJACK CORP. $5.18 (Nasdaq symbol LOJN; SI Rating: Speculative) (www.lojack.com; 781-326-4700; Shares outstanding: 18.5 million; Market cap: $95.8 million; No dividends paid) reported 6.6% higher revenue in the three months ended September 30, 2010, to $38.5 million from $36.1 million a year earlier. It earned $0.15 a share in the latest quarter, compared to a loss of $0.78 a share. Sales fell 6.9% at the company’s North American division, to $24.4 million from $26.2 million. International sales jumped 47.3%, to $13.4 million from $9.1 million. The U.S. still accounts for over 65% of LoJack’s revenue. As a result, the company will need a further rebound in American new-car sales to show substantial growth. In the meantime, it will benefit from its efforts to find new uses for its locator technology....

AEROPOSTALE INC. $25.34 (New York symbol ARO; SI Rating: Extra Risk) (646-485-5410; www.aeropostale.com; Shares outstanding: 92.5 million; Market cap: $2.3 billion; No dividends paid) (all figures reflect a 3-for-2 split on March 5, 2010) is a mall-based retailer of casual clothing and accessories. The company, which now has 907 stores, mainly targets 14- to 17-year-old women and men. Its active-oriented clothing has a reputation for high quality and low prices. Aeropostale also has 46 “P.S. from Aeropostale” stores, which are aimed at seven-to-12-year-old elementary-school students. In the quarter ended July 31, 2010, sales rose 9.2%, to $494.7 million from $453 million a year earlier. Earnings rose 13%, to $43.6 million from $38.6 million. Earnings per share jumped 23.7%, to $0.47 from $0.38, on fewer shares outstanding....