BIRCHCLIFF ENERGY, $3.61, symbol BIR on Toronto, reports that its production in the three months ended December 31, 2008, rose 24.4%, to 11,524 barrels of oil equivalent per day from 9,260 barrels a year earlier due to successful drilling at its Montney and Worsely properties. Birchcliff’s cash flow per share rose 4.8%, to $0.22 a share from $0.21. However, falling oil and gas prices drove cash flow down 35.3% in the latest quarter, to $0.22 from $0.34 a share in the third quarter of 2008. Calgary-based Birchcliff, which is involved in oil and gas exploration, development and production, continues to buy land in B.C.’s Montney-Doig region. Birchcliff’s undeveloped land holdings stood at 348,249 acres at the end of 2008, up 30% from a year earlier. Most of the acreage is near Birchcliff’s existing production and provides it with lots of drilling prospects. As a result of its successful drilling at Montney and Worsley last year, Birchcliff increased its reserves to 55.7 million barrels of oil equivalent at the end of 2008, up 62.4% from 34.3 million barrels at the end of 2007....

BANK OF AMERICA CORP., $3.79, New York symbol BAC, continues to see its share price fall (down 25% this week) partly on fears that the U.S. government may be forced to take over some banks. Like many other financial institutions, Bank of America has received assistance from the U.S. Treasury under the Troubled Asset Relief Program. The Treasury has also agreed to cover a portion of the potential losses on securities held by brokerage firm Merrill Lynch, which Bank of America bought on January 1 of this year. We feel that the nationalization of Bank of America is possible, but unlikely. While it looks like it will take longer for Bank of America to see any benefits from its acquisition of Merrill, the company is still profitable and has enough capital to operate. Bank of America is still a buy....

AMAZON.COM, $63.26, symbol AMZN on Nasdaq, unveiled a thinner, faster and lighter version of its Kindle electronic reader this week. The Kindle 2 has over seven times more storage than the first Kindle, as well as sharper images and a 25% longer battery life. The new battery lasts up to four days on a single charge and recharges in four hours. The Kindle 2 also has a text-to-speech feature that lets users listen to books or newspapers read by a computer-generated voice. The Kindle 2 will begin shipping in two weeks, on February 24, at $359 U.S. each, the same price as the first Kindle. (Kindle is only available in the U.S.)...

MOLSON COORS BREWING CO., $38.84, New York symbol TAP, reported that its earnings before unusual items rose 1.0%, to $512.6 million in 2008 from $507.4 million in 2007. However, per-share earnings fell 1.4%, to $2.76 from $2.80 on more shares outstanding. The company didn’t report its sales figures, but its beer volumes rose 4%. Molson Coors continues to work toward its goal of cutting its expenses by $250 million a year by the end of 2009. Its plan includes cutting jobs and improving efficiency by outsourcing certain administrative and other back-office functions. So far, the company has saved $178 million. The July 2008 merger of Molson Coors’ U.S. brewing operations into MillerCoors, a new, 42%-owned joint venture with Miller Brewing, should produce an additional $500 million in annual savings by June 2011. Already, the new partnership has cut its expenses by $28 million. These savings will help Molson Coors cope with a drop in sales to bars and restaurants as the economy slows. Retail beer sales usually hold up well during recessions, so the lower costs will also help Molson Coors stay profitable as drinkers switch to cheaper brands....

ALIMENTATION COUCHE-TARD, $13.20, symbol ATD.B on Toronto, is the largest convenience store operator in Canada, with over 2,000 outlets. The company has agreed to buy 13 convenience stores/gas stations in central Quebec from privately held Group Therrien for an undisclosed price. All 13 stores sell gas under either the Petro-T or Esso brands. Four of the stores have fast-food outlets (two A&W and two Subway), and three have car washes. Couche-Tard will lease the land and buildings at market value for 40 years and buy the stores’ equipment and inventory. The stores will continue to sell Esso and Petro-T gas, but will operate under the Alimentation Couche-Tard banner. Aside from its extensive network of stores in Canada, Alimentation Couche-Tard has more than 3,000 U.S. stores in 28 states. The Canadian stores operate under the Couche-Tard and Mac’s banners, while the U.S. stores mainly use the Circle K banner. The company sells fuel at 66% of its stores....

MOTOROLA INC., $3.88, New York symbol MOT, reported that its 2008 sales fell 17.7%, to $30.1 billion from $36.6 billion in 2007. The drop was mainly caused by a 36% sales decline at Motorola’s cellphone business, which accounted for 40% of the company’s overall 2008 sales. Losses ballooned to $4.2 billion, or $1.84 a share, from $105 million, or $0.05 a share. If you exclude unusual items, including costs related to Motorola’s current restructuring, it would have earned $0.02 a share in 2008. The restructuring, mainly job cuts, should save the company $1.5 billion in 2009. To conserve cash, Motorola has suspended its quarterly dividend of $0.05 a share. Motorola’s other businesses, wireless infrastructure and home equipment, remain profitable. The company also holds $7.0 billion in cash, or roughly $3.05 a share, and has $4.2 billion in debt. This should help it cope with the economic downturn. Motorola is a hold....

IDEARC INC. $0.07 (Symbol IAR) now trades on the Pink Sheets over-the-counter market under the symbol IDAR. The New York Stock Exchange delisted Idearc in November 2008 after the stock price fell below the minimum required for continued listing. Sell. NVIDIA CORP. $8.79 (Nasdaq symbol NVDA) expects that its revenue in its fourth fiscal quarter, ending January 31, 2009, will fall by 40% to 50% compared to the third quarter. The drop is mainly due to falling computer sales and strong price competition among chipmakers. However, Nvidia still has a high share of the video-chip market. Its new video-chips for cellphones also improve its prospects. Buy. TENNANT CO. $15 (New York symbol TNC) has dropped from $40.48 in September 2008 on fears that plant closures will hurt sales of its industrial floor-cleaning equipment. The company now plans to cut 8% of its workforce, which should help it stay profitable during the current downturn. As well, Tennant should benefit from falling prices for raw materials such as steel. Buy.

ALLIANT ENERGY CORP. $29 (New York symbol LNT; Income Portfolio, Utilities sector; Shares outstanding: 110.5 million; Market cap: $3.2 billion; Price-to-sales ratio: 0.8; WSSF Rating: Average) expects that it earned $2.65 a share in 2008. However, earnings for 2009 will likely drop to between $2.18 and $2.48 a share as the slowing economy has hurt electricity demand. The stock now trades at a reasonable 12.4 times the midpoint of that range. Despite the weaker forecast, Alliant increased its quarterly dividend by 7.1%, from $0.35 a share to $0.375. The new annual rate of $1.50 yields 5.2%. Alliant Energy is a buy. QUAKER CHEMICAL CORP. $13 (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 10.8 million; Market cap: $140.4 million; Price-to-sales ratio: 0.2; WSSF Rating: Average) plans to cut 10% of its workforce, as the slowing economy has hurt demand for its industrial lubricants and chemicals. Severance and other costs will total $3 million. That’s equal to half of the $6.0 million, or $0.51 a share, that Quaker earned before one-time items in the third quarter. Lower operating costs will help it keep paying quarterly dividends of $0.23 a share, for a current yield of 7.1%....

Newell and Tupperware have fallen sharply in the past few months on fears that weaker consumer confidence will hurt their sales and earnings. However, they own some of the world’s best-known brands, and this is helping them expand overseas. They both use oil to make their products, so they also stand to gain from falling oil prices. This should let them continue to pay above-average dividends. NEWELL RUBBERMAID INC. $9.21 (New York symbol NWL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 277.2 million; Market cap: $2.6 billion; Price-to-sales ratio: 0.3; WSSF Rating: Average) makes a wide variety of household products, such as plastic storage bins, tools and pens. International markets account for 30% of its revenue. The company’s total term debt was $2.9 billion as of December 31, 2008, which is a high 110% of its market cap. Of that total, $752.7 million is due within one year. Newell generated $546.6 million in cash flow in 2008, so it should have little trouble meeting its obligations. The company also held cash of $275.4 million, or $1.00 a share. Newell aims to conserve cash by accelerating its current restructuring plan, which includes temporarily shutting down some of its plants to reduce inventory levels....

The credit crisis has weighed heavily on Broadridge and Fair Isaac, which provide specialized services to financial institutions. However, these services help their clients cut costs and comply with changing regulations. We still see both companies as buys for long-term gains. BROADRIDGE FINANCIAL SOLUTIONS INC. $14 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 141.4 million; Market cap: $2.0 billion; Price-to-sales ratio: 1.0; WSSF Rating: Extra Risk) offers services to the investment industry in three main areas: investor communications, securities processing, and transaction clearing. Broadridge mails and processes 70% of all proxy votes. Broadridge’s revenue in its first fiscal quarter, ended September 30, 2008, rose 4.7%, to $472.4 million from $451.2 million a year earlier. It typically sells its services under long-term contracts that provide it with steady revenue streams. This cuts its risk. However, earnings fell 1.1%, to $35.6 million from $36.0 million. The drop was mainly due to the timing of extra expenses stemming from investments in technology and new products. Earnings per share fell 3.8%, to $0.25 from $0.26 on more shares outstanding....