Top 10 Canadian Companies To Watch For 2014

Equity markets stumbled a bit to start the year but have since enjoyed a solid mid-winter rally, with the S&P 500 Index pushing out to new all-time highs.

The Dow Jones Utilities Average and the Philadelphia Stock Exchange Utility Index have both enjoyed consistently strong runs this year. Earnings for electric utilities, as we detail in the March issue of Utility Forecaster, available at www.UtilityForecaster.com, have been solid at both the top and bottom lines.

Well-known economist David Rosenberg, formerly chief economist for Merrill Lynch and now with Toronto-based Gluskin Sheff + Associates, has argued in recent days that Canadian stocks are trading at an ��pic��discount to US stocks.

The S&P/Australian Securities Exchange 200 Index, meanwhile, has surged to five-and-a-half-year highs, and the aussie has found some traction as well.

As I do once every month (except December), on Feb. 27 I met up in a virtual forum with Australian Edge, Canadian Edge and UF subscribers to discuss these and other, more company-specific issues.

5 Best Services Stocks To Own Right Now: Cornerstone Progressive Return Fund(CFP)

Cornerstone Progressive Return Fund is a closed-ended equity fund of fund launched and managed by Cornerstone Advisors, Inc. The fund invests funds investing in the public equity markets of the United States. It invests in stocks of companies operating across diversified sectors. Cornerstone Progressive Return Fund was formed on April 26, 2007 and is domiciled in the United States.

Advisors' Opinion:

• [By Dan Caplinger]

  But you can see in several places the consequences of the stampede toward high yield. Here are just a few:

  Closed-end funds Cornerstone Progressive (NYSEMKT: CFP  ) and Pimco High Income (NYSE: PHK  ) both make fixed payments back to fund shareholders on a monthly basis, and their distribution yields are truly extraordinary, at about 17% and 12%, respectively. Those dividends have enticed shareholders to pay $1.30 to $1.40 or more for each $1 of assets in the funds. Yet during most months, a substantial portion of those distribution payments has simply been a return of investor capital rather than true income from the funds' investments. A recent study discussed in The Wall Street Journal found that returns on a portfolio with a combined value and dividend-income strategy outperformed a strategy focused more exclusively on maximizing dividends by an average of 1.7 percentage points per year, a huge edge in long-run returns. In the dividend ETF arena, most funds tend to focus on maximizing yield. Although the popular Vanguard Dividend Appreciation (NYSEMKT: VIG  ) ETF bucks the trend by screening first for consistent dividend growth and only then looking at yield as a factor, many rival ETFs start with high-yielding stocks as their baseline and only then consider other desirable traits. Others focus solely on high-dividend niches of the market, such as iShares FTSE NAREIT Mortgage-Plus (NYSEMKT: REM  ) and its concentration on high-yield mortgage REITs.

  When dividend stocks get too popular, their prices get out of line with both their dividend income and the fundamentals of the businesses that underlie those stocks. In simpler terms, when dividend stocks become bad values, it's time to consider looking elsewhere for a margin of safety.

Top 10 Canadian Companies To Watch For 2014: Hudbay Minerals Inc (HBM)

HudBay Minerals Inc., an integrated mining company, engages in the exploration and development of copper, zinc, and precious metals mines in North and South America. It primarily produces copper concentrates containing copper, gold, and silver; and zinc metal. The company principally owns underground 777 mine that covers an area of 4,400 hectares and is located in Flin Flon, Manitoba. It also owns ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan. The company was founded in 1992 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Sean Williams]

  In August, Silver Wheaton reached its most recent deal with HudBay Minerals (NYSE: HBM  ) , securing the rights to its silver production at a low fixed-cost of $5.90 per ounce and 100% of its gold production at its 777 mine through at least 2016 for $400 an ounce In return, Silver Wheaton will fork over up to $750 million in cash for the buildout of HudBay's Constancia mine. Even with the tumble metal prices took this week, Silver Wheaton's margins will continue to remain fat with gold hovering near $1,400 an ounce and silver near $23 an ounce, and its dividend could still head even higher.

• [By Dan Caplinger]

  Dan, however, does believe CEO Randy Smallwood has the experience necessary to deal with these challenges. Strategies may include obtaining better terms from existing partners such as Barrick Gold (NYSE: ABX  ) , Goldcorp (NYSE: GG  ) , and Hudbay Minerals (NYSE: HBM  ) on future contracts.

Top 10 Canadian Companies To Watch For 2014: SMART Technologies Inc.(SMT)

SMART Technologies Inc. designs, develops, and sells interactive technology products and solutions that enhance learning and enable people to collaborate worldwide. The company offers a range of SMART Board interactive whiteboards and displays, as well as other interactive products, such as interactive tables, interactive pen displays, student response systems, wireless slates, audio enhancement systems, document cameras, conferencing software, and a line of interactive learning software. Its portfolio of related attachment products include SMART Response, SMART Slate, SMART Document Camera, SMART Table, SMART Audio, and SMART Classroom Suite. SMART Technologies also provides free online learning resources, an online teacher community, and training and professional development. It sells its interactive whiteboards through a network of distributors and dealers to the education, business, and government markets. The company was founded in 1987 and is headquartered in Calgary , Canada.

Advisors' Opinion:

• [By MONEYMORNING.COM]

  Smart Technologies Inc. (Nasdaq: SMT) is a company that literally lives up to its name. It's a supplier of interactive education tools used by more than 40 million students in more than 175 countries.

• [By Michael Robinson]

  Smart Technologies (SMT)

  Smart Technologies is a company that literally lives up to its name. It's a supplier of interactive education tools, used by more than 40 million students, in more than 175 countries.

Top 10 Canadian Companies To Watch For 2014: Ritchie Bros. Auctioneers Incorporated(RBA)

Ritchie Bros. Auctioneers Incorporated, an industrial auctioneer, sells various equipment to on-site and online bidders. The company, through unreserved public auctions, sells a range of used and unused industrial assets, including equipment, trucks, and other assets utilized in the construction, transportation, agricultural, material handling, mining, forestry, petroleum, and marine industries. It also provides Internet bidding services, which facilitate customers access to live and online auction participation. The company primarily serves buyers and sellers of equipment, trucks, and other industrial assets; rental companies and brokers; finance companies; and truck and equipment dealers. As of December 31, 2011, it operated approximately 110 locations in approximately 25 countries, including 43 auction sites worldwide. The company was founded in 1963 and is headquartered in Burnaby, Canada.

Advisors' Opinion:

• [By Chris Hill]

  Caterpillar's (NYSE: CAT  ) �first-quarter profit�fell 45% and the company lowered guidance. But its CEO said that his confidence is at a two-year high and sales in China rose. Should investors buy the stock? In this installment, our analysts discuss Caterpillar's future and explain why Ritchie Bros. Auctioneers (NYSE: RBA  ) could be a hidden winner.

• [By Canadian Value]

  Australians will remember 2013 in part for the fall of some of our national corporate icons. The Ford Falcon and Holden Commodore are unlikely to be produced domestically going forward, and Qantas has unsuccessfully sought subsidies from the Federal government. Due to elevated cost structures and a high exchange rate, Australia Inc. is increasingly unable to compete in a fiercely competitive global market.High on the Reserve Bank of Australia�� (RBA) Christmas wish-list this year will be a lower exchange rate and a business community more willing to loosen its purse strings in 2014. Unfortunately, the first wish will likely need to be granted before the second can be realized. We expect the RBA will need to keep policy accommodative over the cyclical horizon and 2014 will be a critical transition year for the Australian economy.Over the year through September 2013, real growth in business investment outside the mining sector slowed to almost zero (0.5% to be precise, as shown in Figure 1). Why has Australia Inc. invested so little into its businesses this year? As RBA Deputy Governor Philip Lowe commented in a speech in late October, the lack of business investment in recent years is actually a global phenomenon across the developed world.�Although hard to quantify, this ��nvestment drought,��as Lowe described it, has likely been influenced by a lingering risk aversion after the financial crisis as well as the political uncertainty that has been common in many developed countries over the past few years. But in Australia another variable has also been restraining non-mining capital expenditure, and that is the elevated exchange rate.As Figure 1 shows, changes in the real trade-weighted exchange rate have historically led changes in non-mining business investment. As the real exchange rate appreciates, domestic products and services become less competitive relative to foreign goods and services, both at home and abroad. And of course, the reverse is true w

Top 10 Canadian Companies To Watch For 2014: TotalFinaElf S.A.(TOT)

TOTAL S.A., together with its subsidiaries, operates as an integrated oil and gas company worldwide. The company operates through three segments: Upstream, Downstream, and Chemicals. The Upstream segment engages in the exploration, development, and production of oil and natural gas. It also involves in the transportation, trade, and marketing of natural gas and liquefied natural gas (LNG), as well as in LNG re-gasification and natural gas storage operations. In addition, this segment engages in the shipping and trade of liquefied petroleum gas (LPG); power generation from gas-fired power plants, nuclear, or renewable energies; production, trade, and marketing of coal, as well as in solar power systems and technology operations. As of December 31, 2010, it had combined proved reserves of 10,695 Mboe of oil and gas. The Downstream segment involves in refining, marketing, trading, and shipping crude oil and petroleum products. It also produces a range of specialty products, s uch as lubricants, LPG, jet fuel, special fluids, bitumen, marine fuels, and petrochemical feedstock. This segment holds interests in 24 refineries located in Europe, the United States, the French West Indies, Africa, and China, as well as operates a network of 17,490 service stations. The Chemicals segment produces base chemicals, including petrochemicals and fertilizers, as well as engages in rubber processing, resins, adhesives, and electroplating activities. TOTAL S.A. was founded in 1924 and is based in Paris, France.

Advisors' Opinion:

• [By Alex Planes]

  Noble and Delek control the current find, but there are several other promising blocks leased to France's Total (NYSE: TOT  ) and Italy's Eni (NYSE: E  ) , both of which could also participate in developing the export terminal. This would be a more lucrative proposition for Cyprus than it might be in the U.S., because present nat-gas prices in the EU are more than four times as high as they are in the United States:

• [By Arjun Sreekumar]

  For instance, Total SA (NYSE: TOT  ) recently abandoned its Voyageur Upgrader project, deciding to sell its 49% stake in the project to its joint-venture partner, Suncor Energy (NYSE: SU  ) , for $500 million. Total defended the move to scrap Voyageur ��a 200,000-barrels-a-day facility designed to "upgrade" bitumen into crude oil ��by saying that it was "no longer justified from a strategic and economic" standpoint.

Top 10 Canadian Companies To Watch For 2014: Sensata Technologies Holding N.V.(ST)

Sensata Technologies Holding N.V., through its subsidiaries, develops, manufactures, and sells sensors and controls primarily in the Americas, the Asia Pacific, and Europe. It operates in two segments, Sensors and Controls. The Sensors segment offers pressure sensors, force sensors, temperature sensors, speed sensors, position sensors, motor protectors, and thermal and magnetic-hydraulic circuit breakers and switches. Its sensors are used in various applications, such as automotive air-conditioning, braking, transmission, air bag, heavy vehicle off-road, industrial, aerospace, defense, and data/telecom applications, as well as heating, ventilation, and air-conditioning (HVAC) applications. The Controls segment provides bimetal electromechanical controls, thermal and magnetic-hydraulic circuit breakers, power inverters, and interconnection products. This segment also offers application-specific products, including motor and compressor protectors, circuit breakers, semicondu ctor burn-in test sockets, electrical HVAC controls, power inverters, precision switches, and thermostats. Its products are used in heating and air-conditioning systems, refrigerators, aircraft, automobiles, and light industrial system applications in industrial, aerospace, military, commercial, and residential markets. The company offers its products primarily under the Sensata, Klixon, Airpax, and Dimensions brand names. It serves original equipment manufacturers and suppliers in the automotive, industrial, and commercial end-markets; and industrial and commercial manufacturers and suppliers in the climate control, appliance, semiconductor, datacomm, telecommunications, and aerospace industries, as well as motor and compressor suppliers. The company was founded in 1916 and is based in Almelo, the Netherlands. Sensata Technologies Holding N.V. is a subsidiary of Sensata Investment Company S.C.A.

Advisors' Opinion:

• [By Toshiro Hasegawa]

  Commonwealth Bank of Australia (CBA) fell 1.1 percent to A$73.73. Singapore Telecommunications Ltd. (ST) retreated 1.1 percent to S$3.78 today after posting earnings.

• [By cody56]

  The top contributors to performance during the period were Trimble Navigation (TRMB), Sensata Technologies�(ST) and Cadence Design Systems (CDS).

  Trimble Navigation provides location-based solutions to its customers that enhance their productivity and profitability. The recovery in construction end markets and continued strong demand from the farm economy resulted in strong overall financial results for the company and a strong stock price. We trimmed the position as it began to exceed the upper end of the market cap range that we invest in. Sensata Technologies develops, manufactures and sells sensors and controls. We are attracted to the company�� large growth opportunity, which is driven by increased sensor penetration in industries such as automobiles and general industrial opportunities. We find Sensata�� business model to be attractive given the stability of its revenues, strong operating leverage and excellent management team. During the period, the company benefited from a rebound in European automobile sales and deployed capital in several small accretive acquisitions. We have been trimming the position modestly as the stock approaches our price target.

  Meridian Growth Fund performance

• [By Holly LaFon]

  ��Sensata Technologies (ST) develops, manufactures and sells sensors and controls. We are attracted to the company�� large growth opportunity, which is driven by increased sensor penetration in industries such as automobiles and general industrial opportunities. We find Sensata�� business model to be attractive given the stability of its revenues, strong operating leverage and excellent management team. During the period, the company benefited from a rebound in European automobile sales and deployed capital in several small accretive acquisitions. We have been trimming the position modestly as the stock approaches our price target.

• [By Seth Jayson]

  Calling all cash flows
  When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Sensata Technologies Holding (NYSE: ST  ) , whose recent revenue and earnings are plotted below.

Top 10 Canadian Companies To Watch For 2014: Credit Suisse Group(CS)

Credit Suisse Group AG, together with its subsidiaries, operates as a financial services company. The company operates in three segments: Private Banking, Investment Banking, and Asset Management. The Private Banking segment offers advisory services and a range of wealth management solutions, including pension planning, life insurance products, tax planning, and wealth and inheritance advice for the high-net-worth and ultra-high-net-worth individuals. This segment also supplies banking products and services to affluent, high-net-worth and ultra-high-net-worth clients, and corporates and institutions. The Investment Banking segment provides investment banking and securities products and services to corporations, governments, pension funds, and institutions. Its products and services include debt and equity underwriting, sales and trading, mergers and acquisitions advice, divestitures, corporate sales, restructuring, and investment research. The Asset Management segment offe rs integrated investment solutions and services to institutions, governments, foundations and endowments, corporations, and individuals. It provides access to a range of investment classes across alternative investment, asset allocation, and traditional investment strategies. The company operates in Switzerland, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. Credit Suisse Group AG was founded in 1856 and is headquartered in Zurich, Switzerland.

Advisors' Opinion:

• [By Eric Volkman]

  The joint book-running managers of the offering are Goldman Sachs (NYSE: GS  ) , Barclays' (NYSE: BCS  ) Capital unit, Leucadia's Jefferies, and the Securities arms of Credit Suisse (NYSE: CS  ) and Deutsche Bank (NYSE: DB  ) .

• [By Lisa Levin]

  Credit Suisse Group AG (NYSE: CS) shares reached a new 52-week low of $27.86. Credit Suisse's trailing-twelve-month EPS is $1.13.

  PriceSmart (NASDAQ: PSMT) shares touched a new 52-week low of $80.18 after the company reported weaker-than-expected revenue for the third quarter. PriceSmart posted its quarterly earnings of $0.70 per share on revenue of $615 million. However, analysts were expecting earnings of $0.69 per share on revenue of $621.9 million.

• [By Rich Smith]

  Private equity powerhouse Blackstone (NYSE: BX  ) has agreed to acquire Credit Suisse's (NYSE: CS  ) Strategic Partners secondary private equity business for an undisclosed sum, the company announced yesterday.