NEWMONT MINING CORP, $49.28, New York symbol NEM, rose 2% this week after the company reported 2009 earnings that beat the $2.41 a share that analysts were expecting. Newmont’s 2009 earnings jumped 71.6%, to $1.4 billion from $792.0 million in 2008. The company sold common shares to raise funds to buy the one-third of the Boddington gold mine in Australia that it didn’t already own. Because of the extra shares outstanding, per-share earnings rose 60.3%, to $2.79 from $1.74. Cash flow per share rose 45.0%, to $6.45 from $4.45. Revenue rose 25.8%, to $7.7 billion from $6.1 billion. Higher gold and copper prices were the main reason for the improved results. Newmont sold its gold for an average of $977 an ounce in 2009. That’s up 11.8% from $874 in 2008....

BMTC GROUP, $33.52, symbol GBT.A on Toronto, is one of Quebec’s largest retailers of furniture, electronic goods and household appliances. In the three months ended December 30, 2009, BMTC’s revenue rose 3.3%, to $223.9 million from $216.8 million. Earnings per share (excluding one-time items) jumped 27.8%, to $1.01 from $0.79. Cost cuts and higher investment returns helped push up earnings. BMTC plans to split its shares on a 2-for-1 basis. On April 6, 2010, shareholders will get one additional BMTC share for every two shares they hold. After the split, the company will have 52.2 million outstanding class A and class B shares. It now has 26.1 million outstanding shares....

Opening a restaurant is one of the riskiest business decisions you can make. It leaves you at the mercy of local weather, neighbourhood deterioration, temperamental cooks, low-paid cleaners and servers, plus the constant threat of new competitors. No wonder restaurants have the highest failure rate of all new businesses. However, restaurant chains are an entirely different matter. Successful chains have overcome all these problems, mainly by diversifying geographically and profiting from economies of scale. They can profit from the steady demand and high profit margins available to successful restaurants. McDonald’s is our top conservative fast-food stock. Yum Brands is our choice for the aggressive. Yum is smaller and relies on China for growth, but these risk factors expand its potential....

TOYOTA MOTOR CO. ADRs $74 (New York symbol TM; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.6 billion; Market cap: $118.4 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.3%; WSSF Rating: Above Average) has dropped 13% since the start of 2010. That’s mainly because the company recalled 8.5 million cars to fix problems that could lead to sudden acceleration. The cars’ gas pedals could get stuck in the downward position, or their floor mats could get trapped under their gas pedals. Toyota is also recalling hybrid cars for brake problems. This is an example of “Headline Risk.”That’s when well-established companies like Toyota, which is rarely the subject of any bad news, report unexpected and seemingly spectacular bad news. This attracts short sellers and scares off buyers, and the combination leads to a sudden but usually temporary stock-price drop....

An improving global economy should push up software sales in 2010. As well, software makers typically earn higher profit margins than other technology companies, so even a modest sales increase would sharply lift these companies’ earnings. Even so, the software industry remains highly volatile. To cut your risk, you should stick with well-established software companies, such as these four. All are market leaders, and have the financial strength to keep improving their products and developing new ones. Still, we only see three as buys right now. MICROSOFT CORP. $29 (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 8.8 billion; Market cap: $255.2 billion; Price-to-sales ratio: 4.2; Dividend yield: 1.8%; WSSF Rating: Above Average) is the world’s largest software company. Its Windows operating system runs 90% of the world’s computers. As well, the company’s Office suite of programs dominates the business-software field. Together, Windows and Office account for 60% of Microsoft’s revenue and 80% of its earnings....

APPLE INC. $201 (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 906.8 million; Market cap: $182.3 billion; Price-to-sales ratio: 3.8; No dividends paid; WSSF Rating: Average) will start selling its new iPad tablet computer in late March in the U.S. Apple could sell 6 million iPads in the first year. When you account for the cost of chips and other parts, that would generate roughly $2.6 billion in gross profits. To put this figure in context, Apple earned $3.4 billion, or $3.67 a share, in its first quarter, which ended December 26, 2009. The iPad will also spur demand for movies, music and books at Apple’s iTunes web store. Apple is a buy.

ABB LTD. ADRs $20 (New York symbol ABB; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 2.3 billion; Market cap: $46.0 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.4%; WSSF Rating: Above Average) makes transformers, transmission switches and other equipment for distributing electricity. ABB is based in Switzerland. In 2009, ABB’s earnings fell 7.0%, to $2.9 billion, or $1.27 per ADR, from $3.1 billion, or $1.36 per ADR, in 2008. (Each American Depositary Receipt represents one ABB common share.) Revenue fell 8.9%, to $31.8 billion from $34.9 billion. Despite the lower revenue and earnings, demand for ABB’s power equipment is improving, particularly in developing countries. As well, the company is cutting jobs, closing plants and buying more raw materials from low-cost countries. By the end of 2010, these moves should lower ABB’s annual costs by $3 billion....

FAIR ISAAC CORP. $23 (New York symbol FICO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 46.5 million; Market cap: $1.1 billion; Price-to-sales ratio: 1.7; Dividend yield: 0.4%; WSSF Rating: Average) sells products and services that help businesses around the world make better decisions on customer creditworthiness. Its main business is its FICO software, which lets creditors use a customer’s information to calculate a credit score. Fair Isaac’s main clients are banks and other lenders. The slow economy continues to hold back demand for new loans, so many of the company’s clients are spending less on its products and services. That’s why Fair Isaac’s revenue fell 7.3% in its first quarter, which ended December 31, 2009, to $151.5 million from $163.5 million a year earlier....

Department store operators Nordstrom, Macy’s and J.C. Penney have cut costs and slowed their expansion plans during the recession. Lower costs, plus their strong reputations and popular brands, should spur their earnings as the economy recovers. NORDSTROM INC. $37 (New York symbol JWN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 217.5 million; Market cap: $8.0 billion; Price-to-sales ratio: 0.9; Dividend yield: 1.7%; WSSF Rating: Average) mainly sells upscale clothing, accessories and footwear. The company owns and operates 184 outlets, including 122 department stores, in 28 U.S. states. In the fiscal year ended January 30, 2010, Nordstrom earned $441.0 million, or $2.01 a share. That’s up 10.0% from $401.0 million, or $1.83 a share, in the prior year. The company is doing a good job of managing its inventory, which lowers the need for costly clearance sales. That was the main reason for the higher earnings. Overall revenue rose 0.6%, to $8.63 billion from $8.57 billion. However, the gain was entirely due to higher revenue at its credit-card division. Merchandise sales declined 0.2%. Same-store sales fell 4.2%....

J.C. PENNEY CO. INC. $28 (New York symbol JCP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 236.0 million; Market cap: $6.6 billion; Price-to-sales ratio: 0.4; Dividend yield: 3.1%; WSSF Rating: Average) operates 1,108 department stores in the U.S. and Puerto Rico. In the fiscal year ended January 30, 2010, the retailer’s earnings fell 56.1%, to $249.0 million from $567.0 million in the prior year. Earnings per share fell 58.0%, to $1.08 from $2.57, on more shares outstanding. Due to falling investment values, Penney paid $337 million of pension costs in the the latest fiscal year. In the prior year, it reported $90 million of pension income. That was the main reason for the earnings drop. Excluding one-time items, per-share earnings fell 14.3%, to $1.86 from $2.17. Sales in fiscal 2010 fell 5.0%, to $17.6 billion from $18.5 billion. Same-store sales fell 6.3%. The company is doing a good job of paying down debt. Its long-term debt of $3.0 billion is down 14.4% from a year earlier, and is a manageable 45% of its market cap. Penney also holds cash of $3.0 billion, or $12.76 a share....