Top Stock Picking Strategies

To select an individual stock as an investment, investors first need a good source of prospective investments.  This is where up-to-date stock screeners and market data can prove quite useful to the individual investor.  In this article, we’ll show you how they can be used.

Don’t Underestimate the Value of Timely Market Data

Investors need as much information as possible about what’s going on in the market.  This means tapping into a variety of sources for economic, industry and company-specific information.  To be clear, investors don’t need to delve into statistics and the intricacies of every industry the same way Wall Street economists do, but they do need to have a good grasp of what is driving the market.

Therefore, listening to business reports on television, surfing financial websites and reading the latest trade journals and daily newspapers is highly recommended.  Again, savvy investors should be on the lookout for data and events that will drive the economy going forward.  Obtaining information from a wide cross-section of sources will ensure that an investor isn’t receiving a biased or incomplete news flow.

In terms of news, here are some examples of the types of information investors should tap into on a regular basis:

• Information on interest rate trends, or the likelihood of a future rate hike or cut is extremely valuable.  Remember, if an investor can properly game (or predict) the likelihood of future rate cuts and increase his or her exposure to domestic equities, that investor stands to make a lot of money.  Again, this is why timely, thoughtful analysis of economic news is important.  Incidentally, CNBC usually does a fairly good job at not only reporting interest rate news, but also helping the public gauge the potential for a change in future Fed policy.  (To read more about interest rates, see How Interest Rates Affect The Stock Market and Trying To Predict Interest Rates.)
• Information on OPEC oil production and domestic inventory stockpiles is equally important.  Why? The simplest answer is because our economy and future GNP depends on the ability to source oil at a reasonable price.  Therefore, the supply/demand equation is extremely important.  Again, CNBC, The Wall Street Journal and Investors Business Daily do a great job at not just reporting this news, but also helping investors forecast possible changes in supply.  (Find out more about OPEC and the GNP, in Getting A Grip On The Cost Of Gas, Economic Indicators to Know and Macroeconomic Analysis.)
• Consider consumer sentiment numbers, housing starts and employment figures.  These data sets, while primarily lagging indicators of the economy, give investors the sense of what the broader public is thinking and how they are spending their money.  This is important data to have because it allows the savvy investor to see a trend and gauge the consumer’s willingness to spend money on certain items in the near future.  As an example of using this data, if consumer sentiment is high, housing starts are steadily increasing and unemployment is down, one might properly assume that higher-end retailers will fare better.  Conversely, when all of those indicators are flipped, a proper assumption would be that lower-end retailers would fare better.

When Screening, Prune the Dead Wood First

The trick to proper stock selection is being able to winnow down a number of potential investments to a few viable candidates.  This can best be accomplished by knowing which types of companies to avoid.

Except in the most special circumstances, investors should generally steer clear of:

• Distributors or Commodity-type Businesses

Because these companies aren’t manufacturers, they are merely middlemen that rarely have any unique qualities that would draw large numbers of investors.  Plus, in general, there is often less of a barrier to competition when it comes to becoming a distributor.

Examples of such businesses would be makers of children’s stuffed animals (non-electronic toys are a well-known commodity) and electronics distributors that simply ship goods to retailers.  These businesses could easily see their profits shrink if they lose even one sizable retail account, or if the manufacturer finds a different distributor to ship the goods for less.

• Companies with Gross Margins Below 20%

The most basic reason is that there is almost no margin for error.  In fact, even the slightest downtick in business could send profits plunging.  Typically, commodity-type businesses and distributors carry low margins.  But so do certain start-ups that need to offer their goods and/or services at a lower cost in order to gain market share.  Again, all of these companies are inherently “more risky.” (To continue reading on margins, see The Bottom Line On Margins and How Does Your Margin Grow?)

• Companies that Are Not Considered “Best in Class”

Like your parent always said, “you get what you pay for.” In other words, second tier companies often remain second tier companies unless they have the potential to one day become an industry top dog.  How can an investor tell whether a company is “best in class”? Odds are it will have the largest market capitalization in the business, the largest presence in terms of geographic footprint and will tend to be a “trend setter” in the industry (in terms of price, store format and product offerings) in which it operates; Wal-Mart, Microsoft and Exxon Mobil are terrific examples of such companies.  (To learn more about market caps, see Market Capitalization Defined and Determining What Market Cap Suits Your Style.)

• Companies that Are Thinly Traded

Thinly traded means that these companies trade fewer than 100,000 shares per day.  The market or “spread” for these types of stocks is often extremely volatile.  In fact, investors have enough to deal with when it comes to analyzing the fundamentals.  Sharp swings in supply and demand and the potential impact on the share price is just too hard to gauge, even for a seasoned investor.

• Companies that Have Just Announced a Significant Acquisition

Companies that take on big acquisitions often end up reporting large, unforeseen expenses that can put a big damper on near-term earnings.  Again, while such a deal could present an enormous opportunity, the downside potential is far too often overlooked.  Manhattan Bagels is a terrific example of this.  In the late ’90s the nationally known bagel chain bought one of its biggest rivals on the West Coast.  But it turns out there were accounting problems and the stores that the company bought didn’t turn out to be nearly as profitable as it (or investors) had initially hoped.  Because the acquisition was so huge, Manhattan Bagels couldn’t weather the problems, and was eventually forced to file for bankruptcy protection.

Identifying the Diamond in the Rough

There are a number of characteristics that successful companies tend to have:

• Accelerated Sales and Earnings Growth

Look for companies that are growing their top and bottom lines in excess of 15%.  Why this threshold? It’s because this is the benchmark that many institutions look for prior to getting into a stock.  Of course, keep in mind that companies that grow at a faster pace often have trouble maintaining their growth after a few years, and are more likely to disappoint investors.  Ideally, between a range of between 15% and 25% is the most desirable.  (To find out more about this subject, see Great Expectations: Forecasting Sales Growth and Find Investment Quality In The Income Statement.)

• Insider Buying

Insider buying is a great indicator that a company may be undervalued.  Why? Because while some senior executives may buy shares simply to demonstrate their faith in the company, the lion’s share buy company stock for just one reason: to make money.  Look specifically for companies where several insiders are buying at or near the current market price.  A terrific source for insider data is the SEC.  However, other non-governmental sources also offer good data on this subject, including Thomson Financial.  (For more insight, read Can Insiders Help You Make Better Trades? and When Insiders Buy, Should Investors Join Them?)

• Companies Sporting a Solid Chart

While technical analysis shouldn’t be a major factor in the stock selection process, it does have its role.  Ideally, investors should be on the lookout for a company that is steadily advancing in price on higher volume.  Why? Because stocks that advance on increasing volume are under accumulation.  In other words, there is a broad-based momentum in the stock that is likely to continue to bring it to new levels.  (Picture the trajectory of an airplane taking off – that’s what you are looking for!) Another tip: Look for stocks that are making new highs.  Often companies that are breaking through, or have broken through, technical resistance have recently experienced some positive fundamental improvement that is drawing attention to the stock.

Don’t Forget Product Familiarity

Fidelity’s Peter Lynch was famous for saying that all investors should either use or be very familiar with the products/companies they invest in.  And while this may sound like common sense, many investors tend to ignore this timeless advice.  (To find out how Lynch chooses his investments, see Pick Stocks Like Peter Lynch.)

What’s the advantage of buying what you know?

Investors with intimate knowledge of the products and the companies they buy can better understand their growth potential.  Incidentally, it also makes it easier for them to predict future sales and earnings growth, and/or to compare their product offerings with those of other industry participants.

The Financials – What’s Attractive

Investors should always review the major financial statements (income statement, cash flow statement and balance sheet) of the companies they invest in.  (To learn how to read financials, see What You Need To Know About Financial Statements.)

Specifically, investors should be on the lookout for:

• Companies with Inventory Growth in Proximity to Revenue Growth

Companies whose inventories grow at a faster rate than their sales are more likely to be caught with obsolete inventory at a later date if sales growth suddenly slows.

• Companies with Accounts Receivable Growth in Proximity to Their Sales Growth

Companies whose receivables are growing at a faster clip than sales may be having trouble collecting debts.

• Tangible Liquid Assets

Companies with a large amount of cash and other tangible (hard, liquid) assets tend to be more solid than those that do not.  A large amount of cash and other liquid assets will provide the company with the means to pay its short-term debts and service its longer term notes even in difficult times.

Winning Half the Battle

Knowing how to screen for stocks and specifically what to look for is a major battle for most investors that go it alone.  The above commentary should serve as a starting point for entrepreneurial investors.  If you take the initiative, you will gain insight and sharpen your skills as you go along.

Credit: Glenn Curtis

Camping Made Simple

Here are a few tips to help make your camping excursion fun and stress-free.

Before Your Trip

1. When packing for a camping trip, prepare for common hazards you might encounter on your trip from bad weather and ticks to poison ivy or rodents.
2. Check the local weather for your destination the day before you leave, so you can be prepared with appropriate clothing and shelter.
3. If you are hiking to your camping destination, it’s worthwhile to practice walking with a full pack before your trip so your body is ready for the extra work.

Items You Should Bring Along

1. If anyone in your party has medical conditions such as asthma or allergies, be sure to pack enough of the required medications. Experts recommend packing an extra couple days’ worth of medications, just in case something happens to keep you from returning home on time.
2. Bring plenty of garbage bags; not only will they be useful if there are no garbage disposal areas near where you set up camp, but they can also be used to keep items dry in a surprise rain shower.
3. Bug spray, poison ivy lotion and sunscreen.
4. A first aid kit.
5. A radio, a flashlight and extra batteries.
6. Bring an extra pair or two of socks. If it rains or you find yourself sloshing through a puddle, you’ll be happy you have clean, dry socks to change into.

Safety Tips

1. Keep a safe distance from wild animals. Squirrels, chipmunks and other little critters might look cute, but they could be dangerous if they feel threatened.   Don’t feed them.  By feeding them, you’re encouraging the animals to get used to finding food at campsites and they’ll return for more when they’re hungry.
2. Secure your food and keep it a safe distance from where you sleep. Animals have a strong sense of smell and the last thing you want is a curious, hungry creature raiding your tent for the last s’more.
3. Some areas of the country have specific rules regarding food storage and other wildlife related issues at campgrounds. If camping in a provincial or local park, be sure to check the management office or the park’s website for instructions.  If camping in more remote areas, provincial wildlife officials can offer useful information.
4. In areas at high risk for wildfires, campfires may be restricted or prohibited. Be sure to check on conditions at your intended destination before you go, and read any notices posted where you are camping when you arrive.

How to buy a BBQ?

The cooking surface is the most important part of a BBQ.  The material used should be strong and resilient.  It should provide good heat transfer, be durable, and help keep food from sticking.  It doesn’t necessarily need to be a non-stick surface as in Teflon but food shouldn’t stick any more than necessary.

Typically, gas grills have either plain steel, cast iron, porcelain coated cast iron, stainless steel, or porcelain coated steel.  Now the intense heat of the grill can wear down these metals if they are thin or poor quality.  Actually the worst thing you can do to a cooking grate is heat it up and then throw cold food on it, but that’s grilling.  It is important to keep you grate clean and in the case of bare cast iron to keep it oiled to prevent rusting.

Plain Steel

Now plain steel tends to lose its temper and start developing chips which make the surface rough and uneven.  This leads to sticking.  The plain, thin rod type grate is bad so stay away from it.

Stainless Steel

Stainless steel can also lose much of its non-stick abilities and get chipped up but not nearly as fast as the plain steel units.  Stainless steel will work well for a long time, but not as long as cast iron or porcelain coated surfaces.

Porcelain Coated Cast Iron

Porcelain has a nasty habit of chipping away and exposing the metal underneath to moisture and can cause rust, especially in porcelain coated cast iron.  This isn’t to say that porcelain coatings can be bad, but cheap porcelain coatings can be.  If you do have a porcelain coated cooking grate you need to keep hard metal scrapers and tools away from it.  A metal bristle brush is okay, but no scrapers. See cleaning instructions.

Bare Cast Iron

Bare cast iron not only gets hot, but it retains a lot of heat.  It gives good grill marks and helps get food cooking faster.  However, a bare cast iron cooking grate needs the most maintance.  This means keeping it clean and making sure that it is well oiled over the entire surface.  During grilling grease and fats will build up on the surface of the grate and this works to help protect the grate, but you don’t grill on every single square inch of the grate so you need to take them out frequently and make sure there is now rust and that they are well oiled.  One of the problems a grill presents to cast iron parts is that the intense heat causes grease to vaporize and therefore burn away.  Just because you grill fatty burgers all the time doesn’t mean that you’ve got enough oil in the right places.

A good, heavy cast iron grate should last for decades if you take care of it.  If you simply are not willing to do the work, go for a high quality porcelain coated cast iron grate.  You get the heat characteristics of cast iron in a rust resistant surface.  When you buy your cooking grate though, get a good grill cleaning brush that won’t chip the porcelain.

How to clean Porcelain Coated Cast Iron

1. Clean up your grill one day before you want to BBQ.
2. Lay out some newspaper, about four sheets thick, and place your dirty porcelain-covered grills on it.
3. Put on your rubber gloves and spray on an even coating of oven cleaner to one side, then flip them over and spray the other side in the same way.
4. Allow the oven cleaner to work overnight, but make sure the dirty grates are out of the reach of pets and children. The oven cleaner is caustic and can cause nasty burns if not rinsed off immediately.
5. Pick up the porcelain-covered grates and rinse them down in the morning with a generous amount of water. Carefully ball up the newspaper and put it in the garbage. Your grills should be nice and clean.
6. Scrub any stubborn areas with fine steel wool and dish detergent in warm water. Rinse again and wipe dry. The grates should now be spotless.
7. Spray the grates with vegetable oil non-stick spray and rub it in with a paper towel.
8. Heat your grill with the newly cleaned porcelain covered grates to about 400 degrees F and let it burn off any soap residue.
9. Cool it back down to 350 degrees and spray lightly with the non-stick spray. Your grill is now ready for stress-free and non-stick cooking!
10. After cooking, remove the cooked food and give the grates a good scraping with the wire brush to remove any foods while it is still hot. Wipe it down with a rag and a little vegetable oil after it has cooled down to about 200 degrees or less and it will be ready for the next time.

5 Steps to Achieving Your Goals

1. Divide and Conquer

Don’t try to achieve one enormous goal.  Many people procrastinate because they feel overwhelmed when they think of how to climb Mount Everest.  Break them up into easy, achievable bite-sized mini-goals.

2. Write down your goals in point form

Write down all your mini-goals in point form.  Rank them in priority.
Not only will you be reminded of what you need to achieve but you can also check them off as you accomplished each of your goals.

3. Start Immediately!

Once your list of goals is done, start on them right away!  Do not procrastinate because it will only delay your progress.

4. Never give in to distractions

With social media being so vital, it is often difficult to not check your email, Facebook, and Twitter.  However, these are all distractions you must avoid while you are working on achieving your goals.  This is what I do.  Schedule mini 10-minute breaks every two hours within my schedule.  Only within that period would I launch my email, Facebook and Twitter. Don’t even keep the tickers running in the background!  When time is up, shut them all down until the next break.

5.  Push on until it is done

Use your list of goals as your guide.  Follow through each goal.  Once completed, take a breather, then double-check to see if the goal was fully achieved.  If so, check it off your list.  Repeat until your entire list of goals is completely checked off.

How to Save Money When Dining Out

1.  Avoid Appetizers

These small portions, while delicious, are not a good value for your money.  In general, appetizers are expensive for the amount of food that you’ll receive.  If you’re looking for an additional dish, consider ordering an extra entrée.  You’ll be able to feed more people, and extras can go into a takeout box to eat later.  Alternatively, if you can’t justify the extra food, then don’t order it.  Even if you’re extremely hungry, one entrée should be plenty.

2.  Ditch Drinks

Drinks tend to have some of the highest markups of any item on a restaurant menu.  Instead of ordering one, ask for a glass of water.  It will cost you nothing and will complement any meal.

3.  Clip Coupons

If you’re an expert couponer, you know that finding restaurant deals can be tricky.  Try signing up for email lists, visiting your favorite restaurant’s website from time to time, and keeping your eyes open for happy hour deals or seasonal promotions.

4.  Split Meals

If you’re visiting a restaurant with notoriously large portions, split your meals.  There’s no need to order more food than you can eat, and you’ll get plenty of enjoyment out of sharing.

5.  Eat Half

When you receive a big portion, you shouldn’t feel obligated to eat all of it.  Health-wise and wallet-wise, you’re better off eating half your food and taking the rest to go.  With some entrees, you can even split your meal into thirds.  This strategy will help you bring down your cost per meal.  For instance, if you eat a $10 entrée over two meals, you will end up paying $5 per meal instead of $10 per meal.  An added benefit is that you won’t have to cook for two meals in a row.

6.  Shop Around

By reading reviews, you’ll quickly learn that expensive isn’t always better.  You’ll be surprised what great food you’ll find at your neighborhoods’ hidden gems.  Before you take your family to a new place, preview the menu online so that you can budget your night out.  Research other options before letting big names win you over.

The Bottom Line

Cooking at home will always be your least expensive option, but that doesn’t mean you have to deprive yourself of a good night out.  Enjoy what the chefs of the world have to offer, but do so in moderation.  Don’t waste food, and despite what your hunger cravings tell you, stick your budget.  Your stomach and wallet will thank you.

Credit: Ritika Puri

Still have not received your Tax Refund?

The Canada Revenue Agency does not start processing Canadian income tax returns until the middle of February.  No matter how early you file your income tax return, you will not be able to get information on the status of an income tax refund until the middle of March.  You should also wait until at least four weeks after you file your return before checking on the status of an income tax refund.  If you file your return after April 15, wait six weeks before you call.

Processing Times for Tax Refunds

The length of time it takes the Canada Revenue Agency to process your income tax return and refund depends on how and when you file your return.

For income tax returns filed before April 15

• Paper returns – 4 weeks
• TELEFILE, NETFILE or EFILE returns – 2 weeks

For income tax returns filed after April 15

• Paper returns – 6 weeks
• TELEFILE, NETFILE or EFILE returns – 2 weeks

How to Check on Your Tax Refund

To check on the status of your income tax refund you need to provide the following information:

1. Your Social Insurance Number
2. The month and year of your birth
3. The amount entered as Total Income on line 150 of your income tax return for 2009 or 2010.  (Before May 1, 2011 you’ll need the amount entered on line 150 of your 2009 return.  On or after May 1, 2011, you’ll need the amount you entered on line 150 of your 2010 return.)

Check on Your Tax Refund Online

Use the Quick Access tax service provided by the Canada Revenue Agency to get immediate access to information on your income tax refund:

http://www.cra-arc.gc.ca/quickaccess/

You can also check on the status of your income tax refund using the My Account tax service:

http://www.cra-arc.gc.ca/myaccount/

NOTE:  The Government of Canada epass is no longer valid, and after October 4, 2010 all users of My Account have to register to create a new CRA User ID and password.  It will take at least five business days for you to receive a CRA security code in the mail.

Check on Your Tax Refund by Automated Phone Service

You can also use the Telerefund service on the Tax Information Phone Service (TIPS) to find out if your return has been processed and when to expect your refund cheque.  The Telerefund service on TIPS is available from mid-February until the end of December.

The TIPS phone number is 1-800-267-6999

Another way to check on the status of your Canadian income tax refund is to call the Refund Enquiries line at 1-800-959-1956 or General Inquiry at 1-800-959-8281.

Are you a Manager or a Doer?

When the pressure is on, managers fall into a trap, quite easily, of doing more of the regular workload that their employees could.  It makes them feel like they are achieving more personally, as well as fighting the fires that crop up every day.  But this is not a sustainable solution, here’s why…

Most managers are measured on tangible results.  It could be sales, or response times or production output.  It is often number related and with this in mind, many managers seek to beef up the manpower delivering these numbers, by doing some of this work themselves.

There is nothing wrong with a manager choosing to get their ‘hands dirty’.  To chip in with their people.  In fact, when it really matters, it can be a valuable motivational activity, building team spirit.

But as resources get stretched and the manager becomes an integral part of the workforce, the business starts to get dependent on their tactical input.

Managing vs. Doing

And this stops being a management role, but a ‘doing’ role.  At it goes on and on, with no time to develop people and strategies to make the business truly grow, develop and evolve.  There is no time for the really important stuff which grows teams and individuals to improve and enhance their contribution.

And so the problems start

Firstly, the manager becomes unable to spend valuable time with team members and understand what they are feeling, or build credible relationships with them.  These are vital to develop an awareness of issues that are arising in the workplace and to get to know individuals’ difficulties and aspirations, for future team development.

Secondly, employees begin to regard the manager as just another employee, at their level, and the discipline afforded to someone in seniority fails, just when it is critical to have someone leading from the front.  Respect is lost.

Thirdly, the lack of development provided by a manager to each and every one of their people generates a boredom with the job.  With little challenge, the job becomes repetitive.  With little time for their employees, even praise becomes a rarity.

Finally, absenteeism and turnover increase.  The hard working manager, doing their now ‘day-job’, is placed faces more tactical demands as he or she puts the ‘doing’ work in, to just keep up.  As they have less and less capable people, inevitably, something falls off the cliff.

Typically the business starts to underperform and the manager gets put under pressure from above, often failing under the strain of self-imposed workload – but the wrong workload.

Step Back

Challenging though it may be, a manager has to step back from much of this ‘doing’ stuff in the workplace.

Short-term, things may get worse, but for the longer-term growth of the business, the manager has to manage their people effectively.  Easy steps in this are spending time building relationships, defining robust standards, communicating effectively and managing performance.

Time spent here will be much more value-creating for a manager in developing their people and the business for which they are responsible, as well as providing a fulfilling role for them.

Manager or Doer?

Manager or Doer – it is a choice and one which can take some time and effort to master.  With it comes the maturity of realising where the future lies – and what it looks like.

At the end of the day, as an alternative, stepping back from management and becoming a great ‘doer’, with the respect that brings is no failing.

10 Incredible National Parks of Canada

The National Parks of Canada are among the top touristic destinations in the world. Today, we’re counting down our picks for the best of the best.

Pacific Rim National Park Reserve, British Columbia

Vancouver Island’s west coast is already Canada’s top surfing destination. Add a 46-mile trail through old-growth temperate rain forest, a hundred islands for wilderness kayakers, and 20,000 migrating gray whales each spring, and it’s no wonder the 93-mile strip of seashore is so popular that reservations are required to visit certain parts.

Inland, it’s a temperate rain forest, which means it gets around 120 inches of rain a year. (So pack the rubber stuff!) And don’t hike the trails without a buddy–wild cougars are frequently observed in parts of the park.

When to go: Late June to early September for the finest weather, but March and April for the whale migration.

Wildlife: Killer whales cruise offshore, eagles soar over the Broken Islands, sea lions and seals play in the surf. Bear-watching boats depart from the towns of Tofino and Ucluelet for about $50 a run. (All prices in this article are in U.S. dollars.)

Where to stay: The waterfront Whaler’s Point Guesthouse in Tofino, a town that’s becoming well known for its galleries. Simple private doubles $57, 250/725-3443, tofinohostel.com/.

Don’t miss: Dipping your toes into tidal pools or exploring the rain forest with the park’s free interpretive walks and trails. Nuu-chah-nulth Trail, for one, focuses on the history of the First Nations, the preferred term for Canada’s indigenous people. For details, make a stop at the park’s recently revamped Wickaninnish Centre at Long Beach.

Kids: Teenage girls can learn to ride the waves at Surf Sister’s five-day summer camps ($375) and two-day programs ($148). Lessons for anyone 12 and up are $57. 877/724-7873, surfsister.com/.

Planning: 250/726-7721; Tourism British Columbia, 800/435-5622, www.hellobc.com/.

Waterton Lakes National Park, Alberta

Separated by a slashed clearing through the forest, Alberta’s Waterton Lakes National Park and neighboring Glacier National Park in Montana form the world’s first International Peace Park. The tiny lakeside town of Waterton sits where the Rocky Mountains drop dramatically to rolling prairies, generating winds so strong the historic seven-story Prince of Wales Hotel has to be anchored with huge cables.

When to go: The sunniest weather is from June through September. For wildflowers–55 percent of Alberta’s wildflowers are found in the park–visit in early summer; for bird migrations and the best animal sightings, go in late fall.

Wildlife: Watch for moose at Cameron Valley (a popular canoeing lake); black bear, elk, and bighorn sheep on the prairie portion of the park; eagles on updrafts in the valley; and grizzlies wandering in the wilderness beyond town.

Don’t miss: The two-hour cruise along the shores of Upper Waterton Lake, which is the deepest lake in the Rockies. It goes to Goat Haunt, a U.S. ranger station just over the border in Montana ($19 adults, $14 ages 13 to 17, $7 kids, Waterton International Shoreline Cruise Company, 403/859-2362).

Where to stay: Waterton Lakes Lodge is the only full-service resort in town (from $163 in summer, about $50 less in spring and fall, 888/895-6343, watertonlakeslodge.com/). The historic Prince of Wales Hotel, below, has an undeniably spectacular view–unfortunately, it charges high rates to match. You’re better off visiting it for afternoon tea ($19).

You need to know: Because there are only 400 hotel rooms available in town, you really do have to book far in advance!

Budget secret: Park interpreters from both the United States and Canada lead free cross-border, full-day hikes every Saturday. You only have to pay for the boat fare: $4 to $11, depending on age.

Planning: 403/859-2224; regional information, 403/853-2252, www.watertonpark.com/.

Banff National Park, Alberta

Canada’s oldest national park started with three prospectors poking around the Rockies. They didn’t find gold, just a steaming, sulfurous hot spring, but the protection of that discovery, in 1885, led to the creation of a 656-square-mile park of jagged snow-capped mountains, broad U-shaped valleys, turquoise lakes, rich forests, and meandering rivers. More than 4 million visitors pay their respects every year, and with some of the world’s best hiking and skiing, peak season never ends.

Photo op: For that classic, mountain-reflected-by-the-lake shot, make an early-morning visit to the poppy-filled garden behind the elegant Fairmont Chateau Lake Louise resort. Also stunning is the unbelievably blue Peyto Lake, off the Icefields Parkway, between Lake Louise and the Jasper Park border.

Wildlife: Elk were once so prolific that park staffers were issued slingshots in an effort to persuade them to move out of town. Grizzlies, meanwhile, hang out in the mountains, stuffing themselves in summer with up to 100,000 buffalo berries each day.

Where to stay: There are roughly 30 inns, including the pleasant Rocky Mountain B&B right in town (from $72, 403/762-4811, rockymtbb.com/). The Banff and Lake Louise youth hostels, made of stone and timber, have been rated in the world’s top 10, and they have family rooms (doubles from $55 in Banff, from $65 in Lake Louise, hihostels.ca/, 866/762-4122).

Don’t miss: The free guided hikes offered by the Friends of Banff Park (friendsofbanff.com/); the 50,000-plant Cascade Gardens, also free, at the foot of Banff Avenue; or the historic Banff Upper Hot Springs, located on Sulphur Mountain–it’s a pool with a fabulous setting surrounded by pines and peaks ($5).

Fascinating fact: The Trans-Canada Highway between Banff and Lake Louise zips beneath a pair of million-dollar overpasses that were constructed so that animals could cross the highway safely.

You need to know: There are lots of additional lodgings by Banff’s eastern gate in Canmore’s strip of hotels and motels. What they lack in charm, they make up for in convenience. Try the Quality Resort Chateau Canmore (suites from $82, 403/678-6699, chateaucanmore.com/).

Planning: 403/762-1550; Banff/Lake Louise Tourism Bureau, 403/762-8421, www.banfflakelouise.com/.

Jasper National Park, Alberta

Raging rivers, crashing waterfalls, and one of the world’s most accessible glaciers are just three reasons why people drive the 142-mile Icefields Parkway, which winds from Lake Louise to Jasper. Once they arrive, they bike wooded trails, raft on waters that were glacier ice hours earlier, and soak in Miette Hotsprings, the hottest mineral pool in the Rockies. What makes the park particularly appealing, though, is that it’s so darn easy to stumble across wildlife.

When to go: Mid-June to Sept 1. Ski mid-December through spring.

Photo op: Fifty-mile visibility from the Jasper Tramway ($21), just across the river from town.

Wildlife: The 29-mile drive to Maligne Lake; you might just catch glimpses of bears, moose, and deer on a single outing. In town, don’t be surprised to see elk peeking from between train cars.

Where to stay: The central, recently re-furbished Athabasca Hotel has enough mounted critters in the lobby to fill its own museum (from $75, 877/542-8422, athabascahotel.com/).

Don’t miss: Larger than the city of Vancouver, Athabasca Glacier sends melted snow and ice to three oceans–the Arctic, Atlantic, and Pacific–as well as to powerful Athabasca Falls. The glacier and the falls can easily be seen by car from the dramatic Icefields Parkway.

To get in closer go to Icefield Centre, at the Athabasca Glacier, 65 miles south of Jasper, with tours on giant-wheeled buses that crawl onto the ice ($22 adults, $11 children, Brewster Snowcoach, 877/423-7433, brewster.ca/).

You need to know: You’re most likely to spot roadside animals at dusk and dawn–but that’s when it’s also easiest to accidentally hit them. Drive carefully.

Budget secret: The Friends of Jasper offer nightly, year-round historical walking tours, birding excursions, and moonlight hikes for $1.50 (780/852-4767, friendsofjasper.com/).

Planning: 780/852-6176; Jasper Tourism & Commerce, 780/852-3858, www.jaspercanadianrockies.com/.

Bruce Peninsula National Park, Ontario

On its west side, the 104-square-mile park, straddling the Niagara Escarpment, slips gently into bogs, beaches, and Lake Huron. On its east side, cliffs plunge into the clear waters of Georgian Bay.

When to go: May to September.

Photo op: The park’s eroded eastern shoreline, particularly the giant stone “flowerpot” column formations.

Wildlife: More than 300 species of birds migrate through this peninsula. The massasauga rattlesnake is an elusive resident, and the black bear makes unwelcome appearances when campers leave food lying around.

Where to stay: The picturesque fishing village of Tobermory, 10 minutes away, where Innisfree B&B overlooks the harbor (rooms from $50, 519/596-8190, www.bbcanada.com/innisfree). From here, you can see the crystalline waters of Fathom Five National Marine Park of Canada, with its 21 islands, lighthouses, and 22 turn-of-the-century shipwrecks.

Don’t miss: The half-mile hike from Halfway Rock Point to Overhanging Point. The coastal scenery is staggering: erosion-sculpted cliffs, grottos, and deep-blue waters.

Planning: 519/596-2233; Bruce County Tourism, 800/268-3838,  naturalretreat.com/; Bruce Peninsula Tourism, 519/793-4734, brucepeninsula.org/.

Bruce Peninsula National Park: Some of the stunted eastern white cedar trees that cling to the cliffs along Georgian Bay, above, are over 1,000 years old–and less than five feet tall. The park is also home to more than 30 species of orchids, best seen in early June.

Point Pelee National Park, Ontario

It’s all about birds and butterflies on this tiny peninsula, which pokes into Lake Erie like a dagger. More than two-thirds marsh, the beach-fringed finger of land, measuring just six square miles, is a haven for tired birds and butterflies migrating across the Great Lake to Mexico and beyond. In May, up to 25,000 bird-watchers also land here, for the show.

When to go: May for songbirds, which are also plentiful (but less colorful) in autumn. September for monarch butterflies. It’s difficult to predict exactly which days they’ll flutter in, but updates can be had by calling a special sighting hotline  (519/322-2371).

Photo op: Take your long lens for the one-mile stroll on Marsh Boardwalk, then climb aboard the free tram from the visitors center for a 10-minute ride to short trails at the park’s tip, the hot spot for bird and butterfly shots. In season, the monarch butterflies often spend early mornings and late afternoons huddled by the thousands in the trees, conserving their warmth and energy.

Where to stay: The Wild Rose B&B in Wheatley, 15 minutes from Point Pelee, is owned by Tom Hince, a birding expert, and Lily Shuster, a former park employee (rooms from $75, 519/825-9070, www.netcore.ca/~peleetom). Other convenient locations are the communities of Leamington and Kingsville, close by.

Fascinating fact: It’s the most southerly point in mainland Canada, with approximately the same latitude as both Rome and Boston.

You need to know: For May, book at least six months ahead.

Budget secret: Point Pelee National Park doesn’t have camping, but just 20 minutes away, you can pitch your tent under the towering oak and hickory trees of Wheatley Provincial Park (519/825-4659, ontarioparks.com/). For dinner, pick up fresh perch or pickerel from the roadside fisheries en route.

Planning: 519/322-2365; local information, 800/265-3633, www.visitwindsor.com/.

Saguenay-St. Lawrence Marine Park, Quebec

Gouged out by a glacier, with banks blanketed in thick forest and flanked by rugged cliffs, the spectacular, 60-mile Saguenay Fjord eventually merges its warm waters with the chilly St. Lawrence Estuary, creating one of North America’s richest feeding grounds for whales. Settle yourself on the shore, and you may even spot a blue whale–the biggest mammal on earth.

When to go: May to October.

Photo op: For belugas, head to the viewing platforms at Baie Sainte-Marguerite and Pointe-Noire. On the fjord’s south side at Rivière-Éternité, Zodiac boats navigate 1,000-foot cliffs that dwarf even passing cruise ships (adults $22, kids 12 and under $14, Parc Du Saguenay, 877/272-5229).

Wildlife: In summer, finback, minke, and enormous blue whales congregate in the area where the waters meet. Humpbacks and sperm whales also visit. Small white belugas stick around all year. Look for birds gathering over the water–it’s a telltale sign of whales beneath.

Where to stay: Base yourself where the rivers merge, in the French-Canadian village of Tadoussac. Founded as a fur post in 1599, today it trades in tourists and crafts. The 39-room Hotel Le Beluga is simple but central (from $67, 418/235-4784, le-beluga.qc.ca/).

Fascinating fact: Remember the 1984 Rob Lowe movie The Hotel New Hampshire? That was shot at the grand, red-roofed Hotel Tadoussac, which was built in 1864. It’s got a dining room with gorgeous murals, where there’s a huge, $22 evening buffet.

You need to know: Interpretation centers run by provincial governments often keep the English translations of park information stashed somewhere in a binder–you may have to ask for it.

Planning: 418/235-4703; Tourism Quebec, 877/266-5687, bonjourquebec.com/; Tourisme Saguenay-Lac-Saint-Jean, 877/253-8387, www.tourismesaguenaylacsaintjean.qc.ca/.

Fundy National Park, New Brunswick

When you paddle in deep water past the park’s coastal cliffs, it’s hard to imagine that you can return later in the day and have a beach stroll in exactly the same spot–here, tides are so massive, they push rivers back upstream.

When to go: Late June to mid-September.

Photo op: Sumptuous Dickson Falls, where waters cascade down moss-covered boulders. A one-mile loop trail near the headquarters leads you there. For a gripping coastal view of the park, head to Butland Lookoff on Highway 114.

Also, during the Bay of Fundy’s extreme low tide–which draws 200 billion tons of water–you get the chance to explore the ocean floor with a park interpreter. Walks are offered daily in July and August.

Wildlife: Deer, moose, and black bear all live here, and beaver lodges are easy to spot from Highway 114. More than 100 species of birds also nest in the park, including the reintroduced, endangered peregrine falcon.

Where to stay: Inside the park at Fundy Highland Inn & Chalets (from $64, 506/887-2930, www.fundyhighlandchalets.com/) and Fundy Park Chalets (from $45, 506/887-2808, www.fundyparkchalets.com/). There are more motels and guesthouses located in the village of Alma, at the park entrance.

Fascinating fact: The Bay of Fundy’s tide draws 200 billion tons of water, which is approximately the same as the daily output of all of the earth’s rivers combined.

You need to know: Dress for the park’s two-climate zone. You can be toasty on an inland trail and chilled by the moist coastal air 10 minutes later.

Budget secret: In July and August, every child’s park admission includes a one-hour “Junior Naturalist Program” excursion, such as a visit to a beaver pond.

Planning: 506/887-6000; Albert County Tourism, 506/734-2660, www.albertcountytourism.com/; Tourism New Brunswick, 800/561-0123, www.tourismnbcanada.com/.

Prince Edward Island National Park, Prince Edward Island

Beyond PEI’s rolling green hills, creamy-white churches, and mussel farms are the long, sandy beaches, rust-red cliffs, and giant shifting sand dunes of Prince Edward Island National Park. Spread across 25 miles of the north shore, this is one of Canada’s smallest–yet busiest–parks.

When to go: Late June to late August.

Photo op: Dunes grow to 60 feet at Greenwich, at the park’s west end.

Don’t miss: The state-of-the-art Greenwich Interpretation Centre at the east end has interactive exhibits and hiking trails; nearby archaeological digs have found 10,000-year-old traces of habitation. And visit the turn-of-the-century Green Gables House, which was the inspirational setting for L. M. Montgomery’s classic children’s novel Anne of Green Gables.

Where to stay: You can find cottages for $40 a night through Prince Edward Island Tourism Information (888/734-7529). Dalvay-by-the-Sea, a National Historic Site at the eastern end of the park, is an elegant Victorian home built in 1895 by an oil tycoon. It’s now an upscale inn and restaurant (from $115 per person, 902/672-2048, www.dalvaybythesea.com/)

Fascinating fact: The rubbery Irish moss that washes up on the beach is used as a thickener in toothpaste.

You need to know: The sand dunes, which host fox dens, are extremely fragile and held in place by the tufts of marram grass. Stick to boardwalks and footpaths.

Planning: 902/672-6350; area tourism information, 888/734-7529, www.peiplay.com/.

Cape Breton Highlands National Park, Nova Scotia

The highlight of the 367-square-mile park, which stretches across the top of Cape Breton Island, is a driving tour: the spectacular 66-mile section of the Cabot Trail. A roller coaster of a road flanked by ocean and forested highlands, it climbs to heights of 1,200 feet (with breathtaking coastal views), twists around hairpin turns, and sinks down to the shore, threading in and out of the park boundaries and through small communities and fishing villages. You can drive the route easily in a few hours, but with all the scenic pull-offs, hiking trails (ranging five minutes to five hours), beautiful beaches, and opportunities to spot wildlife, consider taking several days.

Although the scenery is superb all along the entire Cabot Trail the most awesome coastline views can be found at the lookouts between Pleasant Bay and the southwest border of the park.

When to go: Summer or autumn. Leave enough slack in your schedule for days with bad visibility–they occur often.

Wildlife: Keep an eye out for roadside moose, gliding bald eagles, and highway scenic stops for whale spotting.

Where to stay: The Acadian village of Chéticamp, at the park’s west entrance, has a waterfront boardwalk, seafood restaurants, and crafts shops. Laurie’s Motor Inn rents rooms from $72 (800/959-4253, www.lauries.com/). At the east gate, the best choice is the seaside community of Ingonish. Nights at Glenghorm Beach Resort start at $64 (800/565-5660, capebretonresorts.com/). Between the two, try Cape North’s Country Haven B&B (from $49, 902/383-2369, bbcanada.com/countryhaven).

Budget secret: The park’s Highland Links Golf Course, at Ingonish Beach, was rated Canada’s best public course in 2002 by Score Golf magazine (top price for 18 holes is $63, 800/441-1118, highlandslinksgolf.com/). Casual lobster meals–with a seaside view–cost just $11.50 at the Chowder House, on the main road in Neil’s Harbour. The Highland Sitting Room in historic Keltic Lodge (800/565-0444), a province-run resort on a cliff overlooking Cape Smokey and the dark North Atlantic, is a gorgeous spot for a light lunch.

Planning: 902/224-2360; Tourism Nova Scotia, 800/565-0000, explore.gov.ns.ca/; Cabot Trail, www.cabottrail.com/.

How to build a Rain Barrel

12 Barriers To Keep Others From Ripping Off Your Brand

The only real way to grow sales and profits is to create innovative offerings with some “must haves” that define new categories or subcategories for which competitors are not relevant. The goal is not only to find and successfully introduce such offerings but to create barriers that inhibit or prevent competitors from entering and becoming serious customer options.

The firms that have enjoyed years or even decades of life with no or weak competitors have created such barriers. Here are some twelve routes to real barriers the last six of which involve the brand. I would be interested in examples of others.

1. Proprietary technology

Diamond’s (formerly P&G’s) Pringles, Prius’ Hybrid Synergy Drive, and Dreyer’s Slow Churned Ice Cream all have technologies not easily copied.

2. Ongoing innovation

Becoming a moving target as Apple did by following the iPod with products like the nano, shuffle, and iTouch, and Gillette did with razors from the Trac II to the Fusion ProGlide. Chrysler went for 18 years without a serious competitor in the minivan category it created in part with innovations like sliding driver side doors, swivel seats and removable back seats.

3. Scale

IKEA, Starbucks, eBay, and Apple’s iPod all have scale economies often based on first mover status that provide ongoing competitive advantages.

4. Investment

A high investment protected brands like CNN, ESPN, and Kirin’s Ichiban for many years.

5. Execution

Zappos.com with its Wow! experience, its culture celebrating weirdness, and its 24/7 call center that will even find an open pizza shop presents a high bar.

6. Brand networks

Supporting networks such as the Apple App suppliers and the Pampers’ links to organizations involved in raising babies and keeping them healthy can be hard to duplicate.

7. Customer involvement

Some brands can organize a community around the brand as Harley-Davidson has done with their Trip Planner and General Mills has done with the Betty Crocker Kitchen. Others can associate with a common interest such breast cancer research (Avon), creativity (Sharpie), or outdoor hiking (Columbia).

8. Self-expressive benefits

Functional benefits are often quickly copied; it is much harder to copy self-expressive benefit such as those offered by Prius. A driver of a Focus may or may not be driving a hybrid but there is no such doubt about a Prius driver.

9. Brand equity

Muji, Zipcar, PowerBar, and Enterprise Rent-A-Car all have strong brands with visibility, associations, and a sense of authenticity.

10. Brand loyalty

If a brand can capture the customers most likely to value the “must haves” and can keep them involved and happy, competitors will be faced with less appealing segments on which to build a business.

11. Branded differentiators

A branded feature, service, program, or ingredient that will define a “must have” such as the EarthGrains Eco-Grain, Aquos’ quad pixel, Weston’s Heavenly Bed, Oral B’s Action Cup, or Amazon’s OneClick can be owned by the firm.

12. Exemplar status

If the brand represents the category such as Fiber One, iPhone, Whole Foods Market, Geek Squad, or Jeep then other brands will have a difficult time getting considered.

These barriers can inhibit competitors from getting traction, becoming visible, and being perceived as authentic or credibility. As a result, they may be weak players for a long time. Even better, they may be discouraged from entering in the first place. To paraphrase Bruce Henderson, the founder of BCG, “the essence of strategy is to convince competitors not to invest in areas of strategic importance to you.” It really is a different way to look at strategy. Don’t try to beat competition but, rather, make them irrelevant and discourage them from even competing.

Credit: David Aaker