Welcome to Pat McKeough’s The Successful Investor Website

The site where you’ll discover how Pat McKeough can help you profit from the market rebound and ensure that you have the funds you need for retirement. Plus, find out how to get a FREE trial subscription…

“My ValuVesting System™ generated a 303.8% return since 1995 including the recent stock market crash. That’s 126.8% above the 177.0% gain of the S&P/TSX.

“A $100,000 investment grew to $403,800… without the sickening ups and downs that most investors suffered.”

“Preview my new Investor’s Guide in this special online report, and discover the secrets that will help you protect and grow your portfolio in the coming year…and how you could still see double- or triple-digit profits, even in a volatile market like the one we’re seeing now.”

Here are straight answers from Pat McKeough—whose Conservative Growth Portfolio is up 303.8% since 1995, despite a 2-year bear market and the 2008-2009 stock market crash!

Now, Pat McKeough, one of Canada’s top independent stock advisors, is telling his clients that even with the recent market turmoil there are still selective stock buys that have superb growth potential over the next 6 months. These stocks could bring you double- or even triple-digit gains over the next 2 years.

“Market uncertainty creates rare opportunities for astute investors. I’m still telling investors to expect a further market rebound over the next couple of years. When that happens, select stocks will bounce back even higher than before! But I’m also expecting that the market could continue to suffer more turbulence this year.”

Don’t be left behind as Pat McKeough steers conservative Canadian investors into the best investments for safety and profits in 2010 and beyond.

In this special online report, you’ll discover how you could profit regardless of which way the market moves. You’ll learn 7 Secrets for stock market success that could dramatically affect your portfolio in the coming 24 months.

Plus you’ll read about…
  • 5 resource stocks that could regain their value (and then some) in an amazing rebound
  • Step-by-step strategies for solid gains in uncertain markets
  • Whether that “hot” stock is a screaming bargain or a disaster in the making
  • The investing shortcut that could cost you a fortune
  • 9 questions you MUST ask before you buy any stock

Subscribe to The Successful Investor, the monthly newsletter that shows you the most profitable low-risk investments.

Click the button below to claim your FREE Special Reports when you subscribe to The Successful Investor.

Dear Canadian Investor,

Shock. Paralysis. Fear.

Today’s investors are in a state of panic. But the fear and uncertainty I see today, I’ve seen before in 5 previous market declines.

And the truth is you CAN do something. You CAN win back your losses even in bear market conditions.

As sure as the market suffers declines, I also know that select stocks will continue to profit from the rebound.

That’s when stocks like those offered in my Conservative Growth Portfolio have the greatest potential for the greatest gains.

The proof? In this most unpredictable time, readers of my investment advisory, The Successful Investor, have watched their Conservative Growth Portfolios increase a stunning 303.8% since 1995…even as the recent market crash was decimating the portfolios of many investors. They did it by taking profitable advantage of my proprietary ValuVesting System.

And I see no reason, even with the current market conditions, why we can’t repeat that performance, and perhaps even beat it, over the next 24 months!

What’s the secret to this kind of success?

Simple…I’ve learned in almost 5 decades of investing that above all else, investing with a conservative, reduced-risk strategy consistently and reliably beats other approaches. I’ve seen this approach succeed time and time again. It works especially well in difficult markets like today’s.

It is this technique that has allowed me to identify one winning stock after another. And to help my subscribers build portfolios that grow in good times and bad.

5 survivors of the resource stock downturn

In fact, I’d love to tell you about 5 undervalued resource stocks I’ve recently identified using my ValuVesting System.

With the decline in natural-resource stocks, you may be tempted to dump all your resource stocks in disgust and just go buy bonds — if you haven’t already.

I say it’s too late … the horse has already galloped out of the stable … and is clear to the next county.

Instead, look to these 5 high-quality stocks. Each has been temporarily depressed, but they could all could regain their value (and then some) with an amazing rebound.

For complete details on these stocks’ explosive potential, request your FREE copy of my newest special report, 5 Essential Resource Stocks for Conservative Investors. I’ll tell you how a little later on, but first let me assure you…

The Successful Investor offers a proven approach to safe investing!

Yes, there is a steady way to make reliable profits in times like these…by investing wisely and early in stocks that grow relentlessly, building your wealth at very low risk. It’s this approach that, since October of 2002, has allowed my subscribers to…

  • Make profits of 98.4% in our Conservative Growth Portfolio
  • Make profits of 73.6% in our Portfolio for Income-Seeking Investors
  • And make profits of 86.1% in our Aggressive Growth Portfolio

And that’s in spite of the recession and Market Crash of 2008-2009.

And it is important to note that these are all published portfolios that you will be able to follow yourself in the pages of The Successful Investor. Plus they are all tracked and rated by The Hulbert Financial Digest — which consistently ranks The Successful Investor among the leading advisories focused on Canadian investments.

In fact, Hulbert recently analyzed a portfolio made up of all of The Successful Investor’s recommendations. It calculated returns on that portfolio and compared them to returns on the Wilshire 5000, an index that aims to measure all publicly traded stocks in the U.S.

The results were nothing short of spectacular: In the year ended September 30, 2009, The Successful Investor’s recommendations posted a 5.0% gain, compared to a 6.4% loss for the Wilshire. Over three years, it gained 15.8% (5.0% annualized), compared to a 13.8% loss (minus 4.8% annualized) for the Wilshire. The Successful Investor’s five-year gain was 93.6% (14.1% annualized), compared to a 9.1% gain (1.8% annualized) for the Wilshire.

Hulbert only began monitoring The Successful Investor’s performance at the start of 2002. From then through September 30, 2009, it had a 199.1% gain (15.2% annualized), compared to a 16.0% gain (1.9% annualized) for the Wilshire.

Here are just some of the stocks that have earned big profits for my subscribers over the past few years:

  • Teranet Income Fund soared 31% in 1 month on a takeover bid after I recommended it as a buy in August 2008.
  • Teck Resources skyrocketed 689.5% in just over 5 months after I recommended it as a buy for a rebound in February 2009.
  • Bank of Nova Scotia exploded 62.1% in four months after I made it a Best Buy in March 2009.

By the way, 24 of the 30 stocks in the Conservative Growth Portfolio have had returns of 100% or more since I recommended them.

Combine outsized profits with minimal losses, and you’ve got a portfolio that makes you a great deal of money AND lets you sleep soundly at night in both good markets and bad.

7 Secrets for stock market success

The foundation behind my stock selection success is my exclusive ValuVesting System. It’s designed to find stocks whose built-in value limits losses during downturns.

Of course, these same factors that prevent a stock from plummeting during market turbulence can also send prices soaring. And with the geopolitical and economic conditions we’re looking at during the next 2 years, you’ll want the profit-making accuracy of my ValuVesting System more than ever before.

That way you’ll know precisely what to do if…

  • U.S. President Obama’s policies impact trade, taxes and international market stability — especially the Canadian stock markets.
  • The roller-coaster ride with the price of oil continues…or violence in the Middle East shuts down oil production altogether.
  • Continued political infighting leads Ottawa to forget its promises of lower taxes.

In this special online report, I’m going to take you behind the scenes and reveal some of the actual tools I use to find stocks that combine high upside potential with limited downside risk.

By the time you’re finished, I think you’ll understand why the 7 secrets revealed here are the key to constructing a portfolio that delivers consistent returns regardless of what the rest of the market is doing.

Naturally, I’m hoping you’ll realize the most convenient way to use these tools is to let me do the number crunching for you. That’s why I’ll be offering you an opportunity to sample my investment advisory service without risk or obligation.

But even if you decide not to take me up on my offer, I hope you’ll start to use the investing tools explained in this online report. I guarantee they’ll make you a more successful investor.

The first secret is to know how to recognize value — especially in a down market.

SECRET #1
The best stocks have been dragged down in the wave of the big losers.

We have seen a record-breaking sell-off of historical proportions. But it’s not my first time helping investors navigate downturns. During more than 40 years as an advisor, I have seen 5 major market downturns. And with that experience has come some wisdom.

One of the things I’ve learned is that the market doesn’t stay down. And with every downturn, good stocks get dumped with the bad. But only good stocks have the built-in value to rebound.

Good stocks are the investments that rise the first and the fastest — and with the greatest level of safety. Better still, these stocks can be picked up at an incredibly low price.

Let’s take a historical perspective. In the Crash of 1987, the turnaround happened in a matter of just 2 months. And the tech crash in 2000 took almost 3 years for many tech stocks to recover. And I believe today’s downturn is most like the 2000 crash.

Now is the time to carefully get rid of junk and recognize bargains that will make significant gains as the economy continues to improve. Here’s proof…

Between 2000 and 2003, our growth portfolio was up 295% … despite the downturn of 2002.

So, if you can recognize good stocks and know when to buy, they offer a once-in-a-lifetime opportunity that could increase your profits 300% or more in just 2 to 3 years from now.

You can prepare yourself to profit from the continuing market rebound by first getting rid of your losers. Start by reading my new Special Report 20 MORE Stocks You Need to Dump Now.

Last season’s report identified stocks that eventually lost as much as 60%, 74% and 83% of their value. I would pay very close attention to this new updated list.

Next I want to share this secret…

Subscribe to The Successful Investor, the monthly newsletter that shows you the most profitable low-risk investments.

Click the button below to claim your FREE Special Reports when you subscribe to The Successful Investor.

SECRET #2
The key to long-term investment success is creating a portfolio that weathers economic downturns while rocketing skyward during the rebound.

A portfolio is more than just a collection of individual investments. It’s a combination of investments that work together over time to achieve your financial goals.

This is critical for making money in good times and protecting your wealth in a decline.

The key, of course, is finding the right combination of investments.

Stocks can be classified according to the many categories supplied by the stock exchanges, fund companies and bond rating companies. Categories like small caps, cyclicals, consumer nondurables and so on, ad infinitum.

The problem with labels like these is that they’re designed for ease of classification, or to sell you something.

I use a reality-based approach, which aims to cut your losses in a downturn and build your wealth during the rebound. Using this approach, I classify stocks into 1 of 5 easy-to-identify economic sectors:

  1. Manufacturing and industry
  2. Resources and commodities
  3. Utilities
  4. Finance
  5. Consumer goods and services

As I explain more fully in Volume 2 of your FREE Investor’s Guide, How to Build an “Unsinkable” Portfolio, each sector has its own distinct characteristics. Finance and utilities are the most stable and offer some of the highest yields. The manufacturing and resources sectors expose you to above-average volatility, but offer strong growth prospects. Consumer stocks are somewhere in the middle.

Generally speaking, you should have holdings in all 5 economic sectors, with the proportion in each depending on how much risk you’re willing to accept and how much current income you need. But above all, you need to stick to high-quality stocks while avoiding stock promotions.

I help you do this in each issue of The Successful Investor. But let me start here by giving you an important heads-up on two issues that will dramatically affect all your investments.

First, to ensure steady gains, my starting point is to immerse myself in financial statements.

To increase your investing success, learn what the numbers really mean

Like many investors, I start my search for winning stocks by looking at a company’s income statement and balance sheet. But unlike the typical investor, I don’t accept the figures that appear there, especially those that purport to show the company’s earnings, and here’s why…

SECRET #3
BEWARE: Earnings reports are almost NEVER a good indicator of how profitable (or unprofitable) a company really is.

A company’s earnings are inherently unreliable for a couple of reasons. First, they’re usually based on estimates of unit sales, costs and a variety of other factors, all of which are subject to constant revision. Second, earnings are adjusted (cynics would say manipulated) in accordance with a variety of accounting rules that frequently do more to distort than to clarify.

For example…

  • I recommended Metro Inc. in March 2008 at $23, despite the fact that the company had reported an 18.5% drop in earnings in its previous quarter. Metro operates grocery stores in Quebec and Ontario, but at the time it was still absorbing its 2005 purchase of 240 stores in Ontario from A&P Canada.

    Metro’s profits were suffering, but largely because it was still consolidating warehouses in Quebec and installing a new computer system in Ontario.

    However, I knew it would soon complete these tasks. I also knew Metro’s profit margins would improve as the company reaped the benefits of phase II of its A&P integration. This included cutting marketing costs by combining certain banners and private-label brands.

    When investors realized that Metro would soon show gains in sales and profits, especially after the A&P integration, the stock began a steady rise. In fact, it gained 73% in just 10 months.

  • I issued a “buy” recommendation on premium beer brewer Sleeman Breweries in April 2006, at $11.40, after strong competition from low-priced beers pushed the stock down. Plus, one-time charges for cost cuts and reorganizing were likely to move the company to report a loss.

    Cash flow was still positive, and I felt the setbacks were temporary. One month later, the company announced that it might sell assets or put itself up for sale. Its stock shot up to over $16, giving readers of The Successful Investor a gain of 40% in just 1 month.

    In August 2006, Sleeman accepted a $17.50-a-share all-cash takeover offer from Japan’s Sapporo Breweries. That pushed the gain up to 56.4% in 5 months!

One way to overcome the distortions caused by deductions for goodwill, purchased R&D (research and development), depletion allowances, depreciation, etc., is to disregard them. You do that by adding these items back to earnings.

This results in “cash flow per share,” which gives you an idea of how much cash a company has available for investment or dividends.

Cash flow can reveal hidden value (which is what my ValuVesting System is all about), but it can also hide problems…

Revealing value or hiding problems?

As you saw with Metro Inc. and Sleeman Breweries, cash flow is often a better indicator of a company’s fortunes than earnings. But that’s not true for all companies in every sector. In some instances, cash flow can be terribly misleading.

This is particularly true for income trusts where essentially the trust hands out most of its cash flow to investors. It can be great for investors in good times. However, that often leaves the company with very little in reserve to carry through a period of slow sales and that quickly spells disaster for the investors.

For instance, Spinrite Income Fund was launched in February 2005, amid a lot of broker attention due to a rise in popularity of knitting bringing a demand for fancier yarn.

Units reached a high of $14.25 in August of 2005, but when sales began to lag, the units quickly fell to just under $6. And the unit holders ultimately paid a terrible price.

With the lack of sales and rising inventories at retailers, Spinrite announced that it would be cutting distributions by more than half, causing the unit price to collapse all the way to $2.50 and the investors to lose twice.

While I do recommend income trusts from time-to-time, I am quick to point out that this kind of business strategy can come undone if growth slows, even a little bit.

The bottom line is that the calculations you’ll need to properly determine cash flow vary from industry to industry. Using the same formula for all companies in all economic sectors will likely fill your portfolio with losers.

You’ll find the tools you need to properly calculate a company’s cash flow, including specific adjustments needed for particular industries, in your 7-volume set of the Investor’s Guide—Triple Your Wealth & Slash Your Risk: How to Generate Outsized Profits in Uncertain Markets. (These calculating tools are in Volume 4, Finding the Real Bottom Line.) Read on to learn how you can receive your copy, absolutely FREE.

Once you have a company’s “earnings” (whether you take the easy way and use reported earnings or calculate a more accurate cash flow figure), you can combine that number with the stock’s price to get the P/E (Price/Earnings) ratio.

This is one of the most widely used investing tools on Earth. Unfortunately, it doesn’t work the way most people think it does…

Is that stock a screaming bargain or a disaster in the making?

The P/E ratio appears in the stock tables of just about every North American newspaper and is used by a great majority of investors. But although the P/E ratio seems easy to use, it’s much more complex than most investors realize…

  • What number should you use for the “E” part of the ratio? Earnings for the preceding year, the current year or the next year?
  • Is it more meaningful to compare a company’s P/E ratio to that of other companies in its sector or to its own P/E ratio over various periods?
  • How does the business cycle affect the P/E ratio of various kinds of companies, and what adjustments do you have to make to compensate for this phenomenon?
  • Should you sell a stock if its P/E ratio gets too high? If so, how do you decide what’s “too high”?

You’ll find answers to these questions (and several more that may not have occurred to you) in Volume 5 of the Investor’s Guide, The Uses and Abuses of P/E Ratios. I’ll tell you how you can receive a FREE copy of this 7-volume set in a moment. But first, I’d like to share with you one of the most important points that Volume 5 of the Investor’s Guide makes…

Subscribe to The Successful Investor, the monthly newsletter that shows you the most profitable low-risk investments.

Click the button below to claim your FREE Special Reports when you subscribe to The Successful Investor.

SECRET #4
Stocks with low P/E ratios are frequently among the most dangerous ones you can buy!

One of the biggest mistakes investors make is buying a stock with a low P/E ratio, thinking that this ensures that they’re getting a “bargain.” Sometimes that’s true, but sometimes a low P/E stock is a sign of danger. Here’s why…

When a profitable company is headed for a long period of losses, its share price usually drops far more quickly than its earnings. That’s because well-informed investors and insiders sell before the bad news becomes widely known.

So, before the “E” shrinks (i.e., before earnings disappear), the stock passes through a low P/E period. Buying at this point is like getting on a train just before it derails.

Analyzing a company’s income statement is the key to determining the quality of its earnings. Analyzing its balance sheet is the key to finding stocks about to soar…

Explosive profits from balance sheet treasures

One of my most consistently successful techniques for finding winning stocks involves going on a treasure hunt of sorts…

SECRET #5
Companies with “hidden” assets often see their share prices soar when the assets become public knowledge or the company uses them in innovative ways.

Just as reported earnings don’t really tell us how profitable a company is, its balance sheet doesn’t always reveal the true value of its assets. Some of a corporation’s most valuable assets—its so-called intellectual property—are carried on the books at nominal amounts.

This would include patents, customer lists, brand names, etc. The classic example, of course, is the secret formula for Coca-Cola, which is reputedly carried on the company’s books at one dollar.

In addition, many companies own assets that never appear on their balance sheets at all. These include such things as a crucial market position, or a long-standing customer base to which a company can sell new products and services.

Readers of The Successful Investor have made incredible profits over the years from companies that have hidden assets. For example…

  • Canadian Tire tripled in price as its investments in technology and new-format stores began to pay off.
  • Canadian Pacific doubled when it started to liquidate its real estate holdings, freeing up more than a billion dollars, cutting its debt and allowing it to focus on its core businesses.
  • Alcan, a Canadian aluminum producer, soared 68.7% in just 2 months when Rio Tinto Ltd. made a successful takeover bid for the company after recognizing it had access to cheap electricity, a key component in aluminum production, at a time of soaring energy prices.

As you can see, hidden value takes many forms. So it should come as no surprise that you can’t uncover it using just one tool or technique.

In your FREE 7-volume Investor’s Guide, Triple Your Wealth & Slash Your Risk: How to Generate Outsized Profits in Uncertain Markets, you’ll find multiple ways to assess the real value of a company’s assets.

In addition, you’ll discover the best ways to find the answers to the 9 most important questions you need to ask before you buy any stock.

Now I’d like to share with you how the new president of the United States could impact investors here in Canada…

SECRET #6
Obamanomics: What it means to Canadian investors.

Barack Obama has moved quickly to put his stamp on U.S. economic policy since he came into office in January 2009.

While we wait to see just how much long-term impact these changes will have, many on both sides of the border continue to debate whether Obama is going to save the economy, or destroy the economy. So how can you navigate the uncertain waters ahead and get the best stocks to make the biggest profits under an Obama administration?

Following Obama will require a close read. He historically has a record of supporting policies that are bad for business and trade. But in his administration he has surrounded himself with an all-star team of advisors from across the political spectrum.

Who Obama inevitably lends his ear to over the coming months and years will be very important. And I’ll be there to offer my guidance to you with each changing economic policy — just as I have done for nearly 5 decades.

To read more about what I see ahead in the Obama administration, read Volume 7 of the Investor’s Guide, Obamanomics 2010: What It Means to Every Canadian Investor. Now let’s look at…

This investing shortcut could cost you a fortune!

If you’re tempted to forgo the research needed to find winning stocks and depend instead on advice from your broker, you better be aware of the brokerage industry’s dirtiest little secret…

SECRET #7
Stocks that are the most widely followed and highly touted by the major brokerage firms are not only more volatile than the overall market, they tend to nose dive as soon as they’re out of the spotlight.

Beware of buzz. Before the crash, many stocks enjoyed an artificially inflated price thanks in part to all the hot air coming from analysts.

In part, this is a significant reason why we’ve seen such a massive global market collapse.

Thanks to ferocious analyst projections, buzz or just plain reputation, some of the most solid and reliable names in the financial markets crumbled. These include:

  • CanWest Global Communications, a leading Canadian broadcaster and publisher, fell 94% as investors realized it wasn’t likely to be profitable enough to pay down its $3.9-billion long-term debt. The company has since filed for bankruptcy protection.
  • Solar-power silicon maker Timminco saw its stock drop nearly 95% in nine months as it failed to meet overly optimistic sales and profit projections in a competitive market.

And artificially inflated stocks are just one reason to be wary of brokers.

With today’s low interest rates some brokers are urging clients to buy structured investments…

I like to call them “Frankenstein” investment products. They are created when a brokerage firm’s underwriting department takes genuinely desirable securities and slices and dices them into a new structured investment.

While these investments often offer principal protection or a guaranteed interest rate, they also come with such big fees that while you may make a few dollars, the big winners will be your broker and his bosses.

“But Pat,” you may be saying, “I don’t need to worry because I do business with a very conservative broker.” In that case, you need to hear the heartbreaking story of what a “conservative” broker did to one investor’s life savings. Although this broker only put his client into “good-quality companies,” the results were a disaster.

The whole sad story appears in a new Special Report, How a “Conservative” Broker Can Send You to the Poorhouse. It’s yours, along with the 7-volume set of my new Investor’s Guide—Triple Your Wealth & Slash Your Risk: How to Generate Outsized Profits in Volatile Markets, without cost when you agree to a no-risk examination of…

Subscribe to The Successful Investor, the monthly newsletter that shows you the most profitable low-risk investments.

Click the button below to claim your FREE Special Reports when you subscribe to The Successful Investor.

The Successful Investor—much more than just an advisory service

The Successful Investor advisory service is much more than just a monthly advisory. It’s a comprehensive approach to safely making money in today’s tumultuous markets. The service consists of the following:

  • Monthly advisory filled with honest buy and sell recommendations (no weasel words that leave you wondering what I really think about a stock). In addition, each issue provides you with a plain-English explanation of what’s happening with the market and the economy.

I work hard at making The Successful Investor an “easy read.” Perhaps that’s why the Toronto Star described my writing style as “a cross between the gentle instruction in fundamental analysis of a Benjamin Graham and the folksy but trenchant wit of a Mark Twain.”

  • Monthly Portfolio Updates that track the progress of previous recommendations so you can see at a glance how well you’re doing and how each investment fits into your overall portfolio strategy. There are three separate portfolios to accommodate different levels of risk tolerance.
    1. The Conservative Growth Portfolio is the core of our service. This is where you should invest the bulk of your stock market money. It includes many major Canadian companies, although there are some glaring omissions. (It takes more than mere size or popularity with brokers to win a place in this portfolio.)
    2. The Portfolio for Income-Seeking Investors: Income investors trust our income portfolio because they know the high safety standards and stringent tests that apply to all the stocks in the portfolio. And the results have been impressive. Yields on each stock range from 1.0% to 12.9%. Each stock rose in price as well, with gains of up to 605.8%.
    3. The Aggressive Growth Portfolio consists of companies with many of the attributes of the stocks in the Conservative Growth Portfolio, but which require additional seasoning before they’re ready to be upgraded to that portfolio. Although these stocks are more uncertain than those in the Conservative Growth Portfolio, they have the potential for truly mind-boggling returns. For example, Sleeman Breweries soared a spectacular 56.4% in just 5 months.
  • 24-hour Email or Telephone Hotline. Although my ValuVesting System avoids frequent trading, it’s entirely possible that events will occur between issues of the advisory that require you to take immediate action. If that happens, all you have to do is check your email anytime day or night or pick up the phone and call the Hotline. I’ll record a new message 50 times a year (same for email) or more often if circumstances warrant.
  • My new Investor’s Guide. In this online report, I’ve provided just a small sample of the information you’ll find in Triple Your Wealth & Slash Your Risk: How to Generate Outsized Profits in Uncertain Markets. The 7-volume set provides complete details about all the points I’ve touched on here, plus a wealth of examples, explanations, tools and worksheets to help you profitably apply my ValuVesting System to your own portfolio.
  • Exclusive Special Report #1: How a “Conservative” Broker Can Send You to the Poorhouse. If your wealth isn’t growing as fast as you think it should even though your broker is “doing everything right,” you’ll want to read this eye-opening report. It’s the true story of what happened to one of my clients when he put his faith in a supposedly reputable broker.
  • Exclusive Special Report #2: 5 Secrets to Beating Rising Interest Rates and Inflation While Increasing Your Wealth. This is your step-by-step guide to protecting your wealth in this changing market.
  • Exclusive Special Report #3: The 5 Stocks You Must Have in Your Retirement Portfolio. This is essential information if you want to protect your nest egg and not see it waste away. I offer my best-of-the-best recommendations to safely help you conservatively protect and grow your wealth.
  • Exclusive Special Report #4: 20 MORE Stocks You Need to Dump Now. Last year’s list of 20 losers included losses as much as 94.9%. In this new updated version, I reveal the names of stocks my ValuVesting System has indicated must be dumped right away.
  • Exclusive Special Report #5: 5 Essential Resource Stocks for Conservative Investors. In this report, I name 5 natural resource-related companies that I see as bargains waiting to explode as the market continues to rebound.

And now…for a really pleasant surprise…

“That’s all it costs? Pat, you’ve got to be nuts!”

When people learn how reasonable our subscription rates are, they think I’ve lost my mind. Well, let me assure you that I haven’t.

I deliberately keep my investment advisory service affordable because I know there are millions of investors who will gladly pay a reasonable price for a high-quality investment advisory.

On the other hand, there are only a handful of professional traders willing to shell out several hundred (or in some cases, several thousand) dollars.

In addition, you’ll…
  • Have FREE access to my 24-hour Email or Telephone Hotline.
  • Receive FREE monthly Portfolio Updates.
  • Receive a FREE 7-volume set of my new Investor’s Guide — Triple Your Wealth & Slash Your Risk: How to Generate Outsized Profits in Uncertain Markets. A $29.95 value, this guide expands on the material contained in my special online report.The proprietary Investor’s Guide reveals everything you need to profitably apply the McKeough ValuVesting System™ to your portfolio. Packed with examples, explanations, tools and worksheets, the Guide is divided into 7 volumes for ease of use, including:
    • Volume 1: How the McKeough ValuVesting System™ Uncovers Hidden Value
      Don’t be fooled by simple-minded notions of value. I explain the many different kinds of built-in value that can stabilize a stock and dramatically propel it upward, even when the rest of the market is in turmoil. You’ll discover, among other things: which assets on a company’s balance sheet appear to be hidden treasures, but are actually ticking time bombs; why some of the most widely used approaches to determining “value” fall short (and what you should use instead); and how combining seemingly unrelated analytical tools provides a better understanding of a stock’s true worth.
    • Volume 2: How to Build an “Unsinkable” Portfolio
      The most important investment decisions you make are the ones that determine how you allocate your capital. In this volume of the Investor’s Guide, I explain how (and why) I classify stocks into 1 of 5 economic sectors. Then I demonstrate, using model portfolios, how seemingly minor changes to the composition of your holdings can have a profound impact on your long-term investment success.
    • Volume 3: Cash Cows that Are Better than Bonds
      If you thought the only way to get a steady, reliable current income was with bonds, you’re in for a surprise. In this fast-reading volume, I reveal how you can often get comparable returns, with greater safety, by investing in certain kinds of stocks. In addition to naming specific stocks that are ideal for generating a growing income stream, I warn you about the perils of oil royalty trusts and other high-yield investments.
    • Volume 4: Finding the Real Bottom Line
      If you think you can learn what a company earned last year or what it will earn next year simply by looking at financial statements, you’re mistaken. Sophisticated investors know that the documents released to journalists and the investing public don’t accurately show a company’s real profit or loss. In this volume of the Investor’s Guide, I “walk you through” a typical P&L statement showing you the calculations you must do if you want to get to the real bottom line.
    • Volume 5: The Uses and Abuses of P/E Ratios
      Millions of investors believe the way to make money in the market is to buy a stock when its P/E ratio is low and sell when its P/E gets too high. If it were that simple, there wouldn’t be a stock market because everyone would be buying or selling the same stocks. In reality, the old reliable P/E ratio turns out to be a terribly unreliable indicator of a company’s value. In this intriguing volume of the Investor’s Guide, I shatter some of the typical investor’s most cherished beliefs. After reading this, you’ll never look at P/E ratios the same way again.
    • Volume 6: The New 2-Tier Market: Prepare Yourself for Profits of 300% or More
      Make sure you’re investing only in first-tier stocks, because if you’re not, you’re risking profits and principal. This is the most historic market change you’ll ever see, and this report will tell you why it’s occurring (the signs have been clear for several years now), what the change means, how you can recognize first-tier stocks and how you can make gains of 300% or more by investing only in first-tier stocks.
    • Volume 7: Obamanomics 2010: What it Means to Every Canadian Investor
      With a historic election over in the United States, Canadian investors want to know what to expect from President Barack Obama. Supporters see him as a saviour. Detractors see an economic disaster. What is really ahead? In this Special Report, you’ll get an honest look at how an Obama administration will impact you without all the politics and demagoguery—just the facts. You’ll learn how to navigate the investment waters as Obama initiates his own tax and trade policies that will impact business, economic growth and job creation on both sides of the border.
    • Receive a FREE copy of my new Special Report, How a “Conservative” Broker Can Send You to the Poorhouse. A $29.95 value.
      Stocks highly promoted by the major brokerage firms are more uncertain than the overall market and they tend to lose momentum as soon as they’re out of the spotlight. Stock prices artificially inflated by stock brokers — who encourage more and more buying — create a buying frenzy among new buyers who drive up the price. When the buying frenzy stops, the prices often collapse. One “conservative” broker put his client into “good-quality companies,” but the results were a disaster. This eye-opening report is a “must read” if your wealth isn’t growing as fast as you think it should. It’s a startling exposé of an all-too-common practice among some brokers who can make your hard-earned wealth disappear right before your eyes.
    • Receive a FREE copy of my important new Special Report, 5 Secrets to Beating Rising Interest Rates and Inflation While Increasing Your Wealth. A $29.95 value.
      Governments around the world have been busy fighting the recession. Their efforts are likely to come with a hefty price tag … in the form of much higher inflation. As you face both higher inflation and higher interest rates, now is the time to re-examine every penny you have invested. You need to find stocks that have the strength to weather these economic pressures and also deliver double- or triple-digit gains to keep inflation from stealing your wealth. Back in the 1970s and 1980s, when inflation was running wild, my strategies brought my clients enviable returns and kept them ahead of the game.
    • Receive a FREE copy of the new Special Report, The 5 Stocks You Must Have in Your Retirement Portfolio. A $29.95 value.
      As you approach retirement, expect your financial planner to tell you to move your nest egg out of stocks and into bonds in order to “protect” the growth that you’ve achieved over the years. But if you look at the numbers, you’ll quickly see that in today’s market, even with the current volatility, it’s almost a mathematical certainty you’ll do better keeping with stocks. In this report, I reveal five securities well suited to income-seeking investors, and to retired investors who look to income-generating stocks and trusts for the stability and security they provide.
    • Receive a FREE copy of my new Special Report, 20 MORE Stocks You Need to Dump Now. A $29.95 value.
      Avoiding losing stocks is just as important as pinpointing winners. In 2008, I published a report that included the names of 20 stocks that would not survive the market downsizing. I can tell you that the average loss of those 20 stocks was 51.2%. In my updated report, 20 MORE Stocks You Need to Dump Now, I again reveal the names of the stocks my ValuVesting System has indicated must be dumped right away. As a subscriber to The Successful Investor you’ll always get a heads up on these losing stocks—with the goal of helping you get out of them before you suffer a major loss.
    • Receive a FREE report on 5 Essential Resource Stocks for Conservative Investors. A $29.95 value.
      Resource stocks have been rebounding lately. I have identified 5 resource stocks that are likely to continue rising rapidly as investor confidence returns. All 5 easily meet all the requirements of my ValuVesting System—and each has the potential to become a major star across all three of my investment portfolios. In this Special Report, I give you all the details on the explosive growth potential of these 5 stocks. Don’t miss it!

Subscribe to The Successful Investor, the monthly newsletter that shows you the most profitable low-risk investments.

Click the button below to claim your FREE Special Reports when you subscribe to The Successful Investor.

That’s a total value of $179.70 for the 5 Special Reports, yours FREE when you try The Successful Investor for 1 year for just $72.

If you prefer, you can subscribe for 6 months for just $39, a $40.50 savings off the regular subscription price of $79.50.

This short-term trial subscription entitles you to receive FREE monthly Portfolio Updates during that 6-month period and receive Volumes 1 and 2 of my Investor’s Guide, plus a FREE copy of my new Special Report, How a “Conservative” Broker Can Send You to the Poorhouse. It’s an additional value of $38.50, yours FREE.

Or for the very best deal, I offer an Easy-Pay Plan — a 1-month FREE trial, then just $18 every 3 months.

That’s right. Simply try The Successful Investor for 1 month absolutely FREE. Plus, I’ll also send you, without cost,

The complete 7-volume set of the new Investor’s Guide;
All 5 Special Reports, including How a “Conservative” Broker Can Send You to the Poorhouse;
5 Secrets to Beating Rising Interest Rates and Inflation While Increasing Your Wealth;
The 5 Stocks You Must Have in Your Retirement Portfolio;
20 MORE Stocks to Dump Now; and
5 Essential Resource Stocks for Conservative Investors.

All of these are absolutely FREE — without further obligation.

If you choose to continue after the FREE trial, there is nothing more you need to do. Your credit card will be billed automatically for $18 + GST/HST every 3 months until you tell us to stop.

That adds up to just $72 per year + GST/HST — which is the same price as the 1-year deal, and you get all of the FREE Bonus Reports, yours to keep, whether or not you choose to continue your subscription.

Regardless of the subscription length you select, you risk absolutely nothing, thanks to my personal, money-back, TRIPLE guarantee.

Send for your no-risk trial subscription and start protecting your hard-earned savings right away.

Yours for safe and profitable investing,

Pat McKeough
Editor,
The Successful Investor

P.S. The model portfolio I told you about — the one that generated a stunning 303.8% return during one of the most uncertain markets in history — is my Conservative Growth Portfolio. Its remarkable performance is 126.8% higher than the 177.0% gain of the S&P/TSX. (By the way, 24 of the 30 stocks in this portfolio had returns of 100% or more since I recommended them.)

P.P.S. When you subscribe online right now I’ll send you my special quick-response bonus report, 3 Little-Known Strategies to Help You Thrive in the Market Rebound (A $29.95 value — FREE). Even with the current stock market volatility, it’s almost a mathematical certainty that you’ll do better with your money in stocks than if you just sit on the sidelines. And you won’t get far with most coupon bonds, which are averaging a paltry 4%. My recommended portfolios are already on their way back up, rebounding faster than the rest of the market. I’ll share my insight on the coming market changes in my new Special Report, 3 Little-Known Strategies to Help You Thrive in the Market Rebound (a $29.95 value).

That’s right. I’ll be happy to send you a FREE copy when you begin your no-risk subscription, right now, to The Successful Investor. This is in addition to the FREE 7-volume Investor’s Guide and FREE Special Reports described above.

Subscribe to The Successful Investor, the monthly newsletter that shows you the most profitable low-risk investments.

Click the button below to claim your FREE Special Reports when you subscribe to The Successful Investor.

Any questions? Call Toll-Free: 1-800-579-GAIN (4246) 24 hours a day, 7 days a week
Fax: 1-416-756-0397
Email:service@tsinetwork.ca

or write me at: The Successful Investor 6021 Yonge Street, Suite 977 Toronto, ON M2M 3W2

Copyright ® 2010 The Successful Investor. All rights reserved.
The Successful Investor Inc., owner of tsinetwork.ca, is affiliated by common ownership with Successful Investor Wealth Management Inc., an Investment Counselor/Portfolio Manager. Past returns do not guarantee future results.

Patrick McKeough—One of Canada’s top safe-money advisors—whose conservative growth portfolio is up 303.8% since 1995. As early as 1980 he was recognized as #1 in the world of published investment advice by the Washington, DC-based Newsletter Publishers Association and he was the first multiyear winner of The Globe and Mail’s Stock Picking Contest.

He is editor and publisher of The Successful Investor, Stock Pickers Digest, Wall Street Stock Forecaster and Canadian Wealth Advisor; inventor of the Quick Profit/Value System and the ValuVesting System™; and a best-selling Canadian author who wrote the book on the 1990s stock market boom, Riding the Bull.

To Start Receiving The Successful Investor newsletter, Enter Your Name and Email Address.

And here’s what just a few of Pat’s current subscribers have to say:

(To protect our subscribers’ privacy, we don’t post full names along with comments. All subscriber letters are kept on file.)

Appreciate your investment guidance

“Hi Patrick, the information and guidance you have provided for our family investments have been greatly appreciated. I am most impressed with your report on how to build an unsinkable portfolio. Thank you.”

B. Packer
Made me bundles

“Dear Pat, I’m a very happy customer. You and your team have saved me lots of money during the down times and have made me bundles in the good ones. Your recommendations and principles have not only been making me bags of money, they’ve tremendously simplified and focused my investment decisions, thereby effectively delivering peace of mind to me.”

L.B. New Westminster
Influenced the lives of many Canadians

“Patrick, congratulations on the well-earned laudatory note in the Brimelow column. A long-time subscriber to Investment Reporter and more recently The Successful Investor, I too thank you, my portfolio thanks you and my wife is pleased, which makes me thrilled. If she’s happy, I’m ecstatic. You have positively influenced the lives of many Canadians and their families. And I never give out copies of your letter but do recommend it to others. Thanks.” —J. Stewart

To Start Receiving The Successful Investor newsletter, Enter Your Name and Email Address.

Not paying commissions now

“My biggest concern is uncertainty in the market, i.e., at the slightest hint of bad news the market tumbles. I know that selecting high-quality investments usually means a recovery in the share price, however…

“Without your advice I’d have to use the advice of [stockbrokers] and pay large commissions. Chances are I wouldn’t participate as actively in the market.”

Name withheld upon request, letter on file.
I’ve done well with your advice

“I have held Canadian stocks for 40 years or so. But I have to tell you that I have done better with your advice than any other advisor I have used. Many thanks.”

J.S.
Portfolio has grown steadily

The Successful Investor has allowed my portfolio to grow in a steady and stable manner over the last number of years. It has also protected my portfolio during the rough spots.”

C.M.
Helpful and knowledgeable insight

“Thank you so much for your terrific service and all the great information provided each week. The helpful and knowledgeable insight provided is so welcome, a joy to read and a terrific bargain to boot!”

J.E.
Very happy with The Successful Investor package

“I have been a subscriber for a few years now and am very happy with not only the weekly hotline, but also the monthly advisory and portfolios supplement.”

H. Zandbergen

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Made millions of dollars

“I started following Pat McKeough’s advice nearly 30 years ago, while others have come and gone. I make my own decisions, but I have to admit that over the years he has helped me make millions of dollars. In the last stock market shakeout, my friends at the golf club have had terrible, terrible results—losing money hand over fist. I’m making more money than ever. I tell my friends and clients to subscribe to Pat McKeough’s advisory. Pat is the safest guide to making money in Canadian stocks.”

Al Harris Senior Partner at Harris & Harris
Doubled my money in 3 years

“In 3 years, I was able to multiply by two my initial amount of money in my RRSP. (Special thanks for your Transcanada Pipelines, Petro Canada, Leitch and Westaim recommendations.)”

M. Plante
Great return over the years

“I have been a subscriber of The Successful Investor since 1996 and really appreciate your advice. Your approach to investing has given me a great return over the years, especially these last couple of months when the market has been strong.”

Nick
Keep up the good work

“Though I am a senior citizen, I am a novice at investing. However, I feel confident I shall be able to make some sound investment decisions by following your clear, unambiguous advice. I like the style that offers education and suggestions yet leaves the reader with the awareness that he has to think a little for himself and make decisions suitable to his own particular situation. I particularly enjoy the issues because I do not feel intimidated or stressed, and enjoy every page. Keep up the good work.”

-Gerry Harrison
Missed being guillotined

“With this market downturn, I am appreciating and understanding your advice more and more, particularly the bit about good stocks being able to survive and bounce back. I subscribe to two advisories: yours and X’s. When the market was booming a few years ago, your stock picks did not do as well as X’s, but with the downturn, X’s stocks have collapsed, whereas yours have appreciated. Fortunately for me, I predominantly had followed your advice and put most of my money into a balanced portfolio of your conservative stocks. Thank you, from a person who feels he has narrowly missed being guillotined.”

Bruce Armstrong
Uncanny

“Keep up the good investment advice. I have certainly found it to be almost uncanny in its accuracy…This investing business can be fun at times.”

Peter Knight
Intelligent

“Just wanted to let you know how much I enjoy the advisory! Intelligent, insightful and rational!”

Darcy Penner

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Retiring soon

“Will be able to retire soon! Many thanks for your sage philosophy and good marketing advice.”

Ian Wilson

Insights

“Your publication is most helpful—I would not be without it. Thanks for your insights.”

John Richards

Great advice

“I’m a reader since 1990…great call on CAE and NT…Thanks for over 10 years of great advice and my retirement from lawyering (pretty much due to you).”

Jeff Gordon

Helpful

“I’m a small investor, mostly RRSP, but thoroughly enjoy your advisory and find your comments very helpful.”

J.G.

Here’s what professionals say about Pat McKeough…
The key to enduring success in the stock market

“Since 1996, I’ve talked to hundreds of individual Canadians about their investing strategies for the ‘Me and My Money’ column. Those who are successful over the long term typically have many things in common—they’re diversified, understand their investments and avoid reacting to the market’s short-term ups and downs.

“This is exactly the approach taken by Patrick McKeough. In a highly readable style, Patrick tells investors just why he thinks a company is a buy—or a sell!—as well as how to understand different industries, and what drives stock prices. More importantly, he helps readers cut through all the market noise and unearth companies with strong long-term potential from a variety of sectors—the key to enduring success in the stock market!”

Tony Martin

Columnist for the Globe and Mail’s report on Business, and co-author of Investing for Dummies for Canadians and Personal Finance for Dummies for Canadians

Heed the advice of this gentleman

“Pat McKeough is one of a select few commentators who stands out from the many shills, flacks and frauds who inhabit the investment universe. The extent of my personal investment advice is to heed the advice of this gentleman.”

Jonathan Chevreau Financial Post

One of the most profitable advisories for investors

“Pat McKeough, one of the best-known market analysts, has been known for the consistency of his solid advice. The cornerstones of his strategy—value, diversification and timeliness—have made his advisory The Successful Investor one of the most profitable for investors, while keeping the risk down to a minimum. Pat’s advice is no nonsense, down to earth and yet based on solid research. You will know not only what to invest in but also what to avoid—the kind of advice that’s not very common.”

Chuck Chakrapani, PhD Investors Association of Canada, Toronto, Ontario

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9 questions you MUST ask before you buy any stock

As a subscriber to The Successful Investor, you’ll find that Pat McKeough answers all of these questions for you and more…

1. Is the company profitable, and have profits been growing at an acceptable rate, both in relation to its competitors and on an absolute basis?

2. Does the stock pay a dividend, and have dividends been growing? (The 7-volume set of your FREE Investor’s Guide explains why dividends are important beyond the income they provide.)

3. Is the company geographically diversified or is it overly dependent on business in a particular area?

4. Does the company have a dominant, or at least prominent, position in its industry, and has it used this advantageously?

5. Is the balance sheet attractive? In other words, does it have adequate equity and manageable levels of debt? (Volume 4 of your FREE Investor’s Guide, Finding the Real Bottom Line, details how Pat answers these questions.)

6. How does the business cycle affect the company’s sales? Does it sell products or services that people need or want regardless of the state of the economy?

7. Is the company hamstrung by excessive government regulation, too much dependence on a single supplier or insider abuses?

8. Do the company’s products or services profit from habitual behavior?

9. Is the company positioned to benefit from one or more secular trends (i.e., ongoing changes in society)?

Getting the answers to these questions requires time, patience, an understanding of what financial statements really mean and the right tools used in the right way. It is admittedly hard work, which is why many investors take the easy way out and forgo the research.

Before you consider making this grave mistake, read Secret #7 and find out why this investing shortcut could cost you a fortune.

My Personal, Money-Back, TRIPLE Guarantee

  1. If The Successful Investor ever disappoints you in any way, you may cancel anytime during the first 90 days and receive a 100% refund of every penny you paid.
  2. Cancel anytime after the first 90 days and receive a prorated refund for the remainder of your subscription.
  3. Should you cancel anytime, all the FREE Special Reports and issues you’ve received are yours to keep. I’ll even give you back your GST!
I’m willing to offer this ironclad guarantee because I’m convinced that once you see for yourself how my ValuVesting System allows you to make money without losing sleep, canceling your subscription will be the last thing on your mind.

To Start Receiving The Successful Investor newsletter, Enter Your Name and Email Address.

My Personal, Money-Back, TRIPLE Guarantee

  1. If The Successful Investor ever disappoints you in any way, you may cancel anytime during the first 90 days and receive a 100% refund of every penny you paid.
  2. Cancel anytime after the first 90 days and receive a prorated refund for the remainder of your subscription.
  3. Should you cancel anytime, all the FREE Special Reports and issues you’ve received are yours to keep. I’ll even give you back your GST!
I’m willing to offer this ironclad guarantee because I’m convinced that once you see for yourself how my ValuVesting System allows you to make money without losing sleep, canceling your subscription will be the last thing on your mind.

To Start Receiving The Successful Investor newsletter, Enter Your Name and Email Address.