PEPSICO INC. $61 (New York symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.6 billion; Market cap: $97.6 billion; Price-to-sales ratio: 2.2; Dividend yield: 3.2%; WSSF Rating: Above Average) will invest $2.5 billion in China over the next three years. To put this cost in perspective, PepsiCo earned $1.4 billion, or $0.89 a share, in the three months ended March 20, 2010. The company will use the money to build new soft-drink and snack-food plants. It will also spend more on research and advertising. These moves should help PepsiCo expand on its roughly 7% share of China’s soft-drink market. Rival Coca-Cola has about 15% of this market. PepsiCo is a buy....

SYMANTEC CORP. $14 (Nasdaq symbol SYMC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 798.9 million; Market cap: $11.2 billion; Price-to-sales ratio: 1.9; No dividends paid; WSSF Rating: Average) is buying the identity and authentication operations of VeriSign Inc. (Nasdaq symbol VRSN). This business makes Secure Sockets Layer (SSL) software certificates, which web site operators use to cut down on fraud and identitytheft. SSL certificates protect sensitive data, such as names and credit-card numbers, that customers send to web sites when they order products online. Over 2.3 million web sites use VeriSign’s certificates, which makes it the leader in this market. However, this business faces increasing competition from cheaper, though less secure, products. Still, Symantec sees VeriSign’s technology as a good fit with its existing data-security products. Symantec is paying $1.3 billion for these operations. To put this figure in context, Symantec earned $1.2 billion, or $1.51 a share, in its latest fiscal year, which ended April 2, 2010. The deal should close by September 30. The company expects the purchase to lower its earnings by $0.09 a share in its 2011 fiscal year. However, the new business will begin adding to its earnings by September 2011....

UNITED TECHNOLOGIES CORP. $66 (New York symbol UTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 933.1 million; Market cap: $61.6 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.6%; WSSF Rating: Above Average) has six main businesses: Pratt & Whitney makes aircraft engines (24% of 2009 revenue, 26% of earnings); Otis makes and services elevators (22%, 35%); Carrier makes heating and air-conditioning equipment (21%, 11%); Sikorsky makes helicopters (12%, 9%); Hamilton Sundstrand makes electronic aircraft controls (11%, 12%); and UTC Fire & Security sells burglar alarms and fire-protection services (10%; 7%). The U.S. government is the company’s biggest customer, and accounts for roughly 18% of its yearly revenue.

Recession hurt growth in 2009

Revenue rose 38.8%, from $42.3 billion in 2005 to $58.7 billion in 2008. However, revenue fell 9.8% in 2009, to $52.9 billion, as the recession cut demand for United Technologies’ aerospace and building-related products....

QUAKER CHEMICAL CORP. $25 makes lubricants and specialty chemicals that protect mechanical parts from corroding. Oil is its main raw material, so it is gaining from lower oil prices. Rising industrial activity in developing markets such as China, Brazil, India and Russia is also spurring its growth. As a result, Quaker raised its quarterly dividend by 2.2%. It now yields 3.8%. Buy. CEDAR FAIR L.P. $13 recently cancelled a friendly, $11.50-a-unit takeover offer after its investors complained the price was too low. The amusement-park operator now aims to strengthen its balance sheet with a refinancing, including issuing $500 million in long-term notes. However, its total debt of $1.7 billion is still a high 2.4 times its market cap. Hold. BUCKEYE PARTNERS L.P. $56 continues to raise its quarterly distributions. The oil-pipeline operator will pay $0.95 a unit in the second quarter of 2010, up 5.6% from the first quarter. The new annual rate of $3.80 yields 6.8%. Best Buy....

The Greek bailout and the poor financial state of major countries rattled the market again this week. Everybody agrees that high government debt and deficit spending are serious problems that must be fixed, but opinions differ about urgency. The biggest pessimists see government debt-and-deficits as terminal conditions that are too far advanced to be reversed. Others see the debt-deficit as more akin to a serious case of high blood pressure – a risk factor, not a death sentence. My view is that a combination of budget cuts, economic growth and a dash of inflation may be enough to gradually unwind the debt-and-deficits problem over a period of years if not decades....

The Greek bailout and the poor financial state of major countries rattled the market again this week. Everybody agrees that high government debt and deficit spending are serious problems that must be fixed, but opinions differ about urgency. The biggest pessimists see government debt-and-deficits as terminal conditions that are too far advanced to be reversed. Others see the debt-deficit as more akin to a serious case of high blood pressure – a risk factor, not a death sentence. My view is that a combination of budget cuts, economic growth and a dash of inflation may be enough to gradually unwind the debt-and-deficits problem over a period of years if not decades....

ZHONGPIN INC. $12.27 (Nasdaq symbol HOGS; SI Rating: Extra Risk) (086-10-8286-1788; www.zpfood.com; Shares outstanding: 34.7 million; Market cap: $426.1 million; No dividends paid) is a China-based company that processes meat and other foods. The company specializes in pork and pork products, as well as fruit and vegetables. It sells 358 meat products, including chilled pork, frozen pork and prepared meats, as well as 34 fruit and vegetable products. Zhongpin focuses on prepared meat products, with their higher profit margins, rather than bulk pork. The company has 12 processing plants, and sells its foods through over 3,200 retail stores. These outlets consist of 145 independently owned Zhongpin specialty boutiques, 1,012 Zhongpin retail stores and 2,048 exclusive supermarket counter locations. Aside from retail outlets, Zhongpin sells its foods to domestic and international fast-food chains, such as McDonald’s and KFC. Other customers include school cafeterias, factory canteens and army posts. In the three months ended March 31, 2010, revenue rose 32.8%, to $204.3 million from $153.8 million a year earlier. Earnings rose 36%, to $13.3 million, or $0.38 a share, from $9.7 million, or $0.33 a share. The company’s $144.1 million of debt is a manageable 33.8% of its market cap. It holds cash of $56.4 million, or $1.63 a share....

TIM HORTONS $34.84 (Toronto symbol THI; SI Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 175.0 million; Market cap: $6.1 billion; Dividend yield: 1.5%) reported that its sales rose 4.8% in the three months ended April 4, 2010, to $582.6 million from $555.7 million a year earlier. The company opened 18 new coffee-and-donut stores during the quarter: 14 in Canada and four in the U.S. On a same-store basis, sales rose 5.2% in Canada and 3.0% in the U.S. Earnings per share rose 21.6% in the latest quarter, to $0.45 from $0.37....

BMTC GROUP $18.50 (Toronto symbol GBT.A; SI Rating: Extra Risk) (514-648-5757; No web site; Shares outstanding: 26.0 million; Market cap: $481 million; Dividend yield: 1.1%) is one of Quebec’s largest retailers of furniture, electronics and household appliances. It sells these through its two affiliates: Brault & Martineau Inc. and Ameublements Tanguay. The company has 20 large stores in the Montreal, Quebec City, Repentigny, Laval, Saint-George, Sainte-Therese, Chicoutimi, Trois-Rivieres, Sherbrooke, Rimouski, Riviere-du-Loup and Gatineau areas. It also has six liquidation centres, six Sleep Gallery stores and two distribution and administration centres in Montreal and Quebec City. In the three months ended March 31, 2010, BMTC’s sales rose 8.5%, to $183.1 million from $168.8 million. Earnings per share rose 27.3%, to $0.14 from $0.11. Cost cuts and higher investment returns helped push up earnings....

WYNDHAM WORLDWIDE $23.60 (New York symbol WYN; SI Rating: Extra Risk) (973-753-6000; www.wyndhamworldwide.com; Shares outstanding: 180.0 million; Market cap: $4.2 billion; Dividend yield: 2.0%) reports that its earnings per share before one-time items fell 17.1% in the three months ended March 31, 2010, to $0.34 from $0.41. However, despite the drop, the latest earnings beat the consensus estimate of $0.30 a share. Revenue fell 1.7%, to $886 million from $901 million. Here too, Wyndham’s revenue was higher than forecast, even though it declined: the consensus revenue estimate was $848 million. The lower revenue and earnings were mostly the result of an accounting change. The economic recovery is pushing up travel demand and increasing the number of guests at Wyndham’s hotels....