Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

Posts by the author

McDonald's Corp. plans to keep aggressively opening locations to continue to power its sales.

Blue Chip Stocks

McDonald’s Reports Higher Sales Despite Economic Headwinds

McDonald’s Corp. plans to keep aggressively opening locations to continue to power its sales.

2 min read

Jim Bates

Dividend Stocks

T. Rowe Price Group Offers a High 4.8% Yield Enhanced by a Key New Strategic Alliance

1 min read

Jim Bates

Mattr Corp. (formerly ShawCor Ltd.) has a strong position in an expanding infrastructure materials market.

Growth Stocks

Mattr Is a High-Growth Infrastructure Materials Play, Trading Cheaply Right Now

2 min read

Jim Bates

How To Invest

High market share powers growth for U.S. conglomerate

Every Thursday we bring you one of our best U.S. stock picks. You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You will read about stocks making moves you should know about, most often from coverage in our newsletter on U.S. investing, Wall Street Stock Forecaster.

United Technologies fell slightly in late November, after Louis Chenevert, its chief executive for the past six years, retired suddenly. However, new CEO Gregory Hayes (who is also a former vice-president) will likely continue Chenevert’s focus on the company’s main aerospace and construction divisions.

These businesses operate in cyclical markets, but their outlook is bright. Airlines are replacing their aging fleets, increasing demand for jet engines and other parts, while developing countries’ ongoing urbanization fuels building-product sales.

...

4 min read

Jim Bates

Mortgage and loan software acquisitions spur growth for cheque printer

How To Invest

Takeovers and drop in our dollar spur Canadian label giant

Pat McKeough responds to many requests from members of his Inner Circle for specific tips on investing in stocks as well as questions on investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week we offer you a report on one of the stocks profiled in these Q&A sessions. We give you Pat’s buy-hold-sell recommendation as well as his analysis of the stock. This is part of the specific buy, hold and sell advice we offer you in our daily posts. Every week you get “A Stock to Sell” on Monday, “Best Canadian Stocks” on Tuesday, and “U.S. Stock Picks” on Thursday.

This week we received a question from an Inner Circle Member about one of Canada’s leading packaging firms. CCL Industries makes 83% of its revenue from pressure-sensitive labels, and the U.S. and Europe supply 73% of its overall revenue. The company grows by acquisition and bought three companies in 2014 alone. Pat balances CCL’s ability to build market share with its size and technology against the risk of growth by acquisition and exposure to volatile commodity prices.

Q: Pat: Do you have any comments on CCL Industries as an investment? Thanks.

...

3 min read

Jim Bates

How To Invest

Canadian engineering firm has made four acquisitions this year

Pat McKeough responds to many requests from members of his Inner Circle for specific tips on trading stocks as well as questions on investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week we offer you a report on one of the stocks profiled in these Q&A sessions. We give you Pat’s buy-hold-sell recommendation as well as his analysis of the stock. This is part of the specific buy, hold and sell advice we offer you in our daily posts. Every week you get “A Stock to Sell” on Monday, “Best Canadian Stocks” on Tuesday, and “U.S. Stock Picks” on Thursday.

This week an Inner Circle member asked us about Canadian engineering firm WPS Group. This firm’s growth strategy centres on the steady acquisition of smaller firms. This approach (similar to that of Edmonton-based engineering firm Stantec, a stock we follow in Stock Pickers Digest) has been producing profitable results for WPS. Pat examines all four of the company’s 2014 acquisitions and assesses the risk that comes with the acquisition and integration of new firms.

Q: Dear Pat: I would like to have your opinion on WSP Global. Thank you very much.

...

2 min read

Jim Bates

How To Invest

New epilepsy drug primed to spur growth for Canadian pharma stock

Pat McKeough responds to many requests from members of his Inner Circle for specific tips on stock investing as well as questions on investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week we offer you a report on one of the stocks profiled in these Q&A sessions. We give you Pat’s buy-hold-sell recommendation as well as his analysis of the stock. This is part of the specific buy, hold and sell advice we offer you in our daily posts. Every week you get “A Stock to Sell” on Monday, “Best Canadian Stocks” on Tuesday, and “U.S. Stock Picks” on Thursday.

This week we had a question from an Inner Circle Member on a Canadian health care stock. Concordia Health Care takes a different approach from many larger drug firms, preferring to buy mature products as opposed to developing its own treatments. It recently acquired the rights to a second-generation epilepsy drug; its other main drug treats irritable bowel syndrome and enterocolitis. Concordia’s sales and share price have both risen. Pat looks at the challenges the company faces in finding new drugs and fighting off generic competition. Q: Hi: Would you give me your opinion on Concordia Health Care? Thank you.

...

2 min read

Jim Bates

Growth Stocks

IBM continues to shift into more profitable areas

Every Thursday we bring you our best U.S. stock picks. You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You will read about stocks making moves you should know about, most often from coverage in our newsletter on U.S. investing, Wall Street Stock Forecaster.

IBM has a long history of drifting in and out of investor favour, mainly due to fear that new technologies will put it out of business.

However, IBM also has long history of shifting out of slowing businesses into faster-growing fields. For example, as computer prices fell in the 1990s, IBM expanded its more-profitable software and consulting operations. The company later unloaded its struggling personal computer operations, and is now selling its low-end server business. It will invest the proceeds in areas with better long-term potential, such as cloud computing and analytics software.

In addition, IBM’s well-known brand and global salesforce continue to give it a big advantage, particularly in developing countries.

INTERNATIONAL BUSINESS MACHINES CORP. (New York symbol IBM; www.ibm.com) started up in 1911 making machines that processed U.S. census data, as well as other industrial equipment such as time clocks and scales.

...

3 min read

Jim Bates

How To Invest

Long-term contracts vital to Héroux-Devtek’s success

Pat McKeough responds to many requests from members of his Inner Circle for specific stock tips as well as questions on investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week we offer you a report on one of the stocks profiled in these Q&A sessions. We give you Pat’s buy-hold-sell recommendation as well as his analysis of the stock. This is part of the specific buy, hold and sell advice we offer you in our daily posts. Every week you get “A Stock to Sell” on Monday, “Best Canadian Stocks” on Tuesday, and “U.S. Stock Picks” on Thursday.

This week an Inner Circle Member asked us about a Canadian company that’s an international leader in the aircraft parts industry. Héroux-Devtek is the world’s third-largest maker of landing gear for aircraft, with clients such as Boeing, Embraer and Bombardier. Pat considers the company’s rising earnings in light of a recent acquisition and a new contract with Boeing. He also looks at the impact of shrinking military budgets around the globe on Héroux-Devtek’s prospects.

Q: Pat: What is your opinion on Héroux-Devtek Inc.? Best regards.

...

2 min read

Jim Bates

Dividend Stocks

Lower oil prices and new acquisitions help Parkland offset loss of Suncor contract

Pat McKeough responds to many requests from members of his Inner Circle for specific stock investing advice as well as questions on investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week we offer you a report on one of the stocks profiled in these Q&A sessions. We give you Pat’s buy-hold-sell recommendation as well as his analysis of the stock. This is part of the specific buy, hold and sell advice we offer you in our daily posts. Every week you get “A Stock to Sell” on Monday, “Best Canadian Stocks” on Tuesday, and “Our Top U.S. Stocks” on Thursday.

Recently an Inner Circle member asked us about Parkland Fuel, a company that sells gasoline and operates convenience stores through its own brands and under license to bigger companies like Imperial Oil. Parkland recently lost a major supply contract with Suncor Energy and Pat examines the company’s attempts to replace that business with new acquisitions. He also looks at the impact of lower oil prices on Parkland’s profits.

Q: Hi Pat: Could you give us an update on Parkland Fuels? They are continuing to make acquisitions, and the stock continues to rise. Would you consider it a buy now? Regards.

A: Parkland Fuel Corp. (symbol PKI on Toronto; www.parkland.ca) operates gas stations, convenience stores and a fuel distribution business, mostly in Western Canada and Ontario. It was called Parkland Income Fund before it converted to a dividend-paying corporation on December 31, 2010.

The company owns 144 rural gas stations and convenience stores. Brands include Fas Gas Plus, Race Trac Gas and Short Stop. Many of Parkland’s stations sell propane in addition to gasoline and diesel fuel. The company also operates Esso stations in Western Canada and Ontario under a licensing deal with Imperial Oil (symbol IMO on Toronto). It recently signed an agreement to use the Chevron brand in B.C.

...

4 min read

Jim Bates

Wealth Management

Investment services are a rich niche market for Broadridge Financial

Every Thursday we bring you our best U.S. stock picks. You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You will read about stocks making moves you should know about, most often from coverage in our newsletter on U.S. investing, Wall Street Stock Forecaster.

This company provides vital services in the investment industry. It’s a market leader with a well-established brand, which makes it hard for competitors to lure away its customers.

BROADRIDGE FINANCIAL SERVICES INC. (New York symbol BR; www.broadridge.com)serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. The company processes 85% of all proxy votes in the U.S.

Without one-time items, Broadridge earned $0.30 a share in its fiscal 2015 first quarter, which ended September 30, 2014. That’s down 23.1% from $0.39 a year earlier. The decline came from higher compensation, plus expanded sales and marketing costs, related to new business.

Overall revenue gained 1.9%, to $555.8 million from $545.2 million. Revenue from contracts that pay recurring fees rose 4% and accounted for two-thirds of the total. The remaining third comes from one-time events, such as notifications of special shareholder meetings and distributing information when mutual funds change managers.

...

3 min read

Jim Bates

Wealth Management

Dominating natural food niche in U.S., Whole Foods pursues international expansion

Pat McKeough responds to many requests from members of his Inner Circle for specific advice on stock investment tips as well as questions on investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week we offer you a report on one of the stocks profiled in these Q&A sessions. We give you Pat’s buy-hold-sell recommendation as well as his analysis of the stock. This is part of the specific buy, hold and sell advice we offer you in our daily posts. Every week you get “A Stock to Sell” on Monday, “Best Canadian Stocks” on Tuesday, and “Our Top U.S. Stocks” on Thursday.

This week an Inner Circle member asked us about the biggest retailer of natural and organic foods in the U.S. Whole Foods is the clear leader in its niche market and has expanded beyond the United States with nine stores in Canada and nine in the U.K. Pat assesses the company’s success in tapping into the growing interest in natural foods, its ambitious expansion plans and the state of its balance sheet. He also looks at its ability to improve efficiency and keep prices in line as it attempts to capture a growing share of the increasingly health-conscious baby boom generation.

Q: Hi, Pat. Thanks for your many years of great advice. Could you please give me your thoughts on Whole Foods?

A: Whole Foods Market Inc. (symbol WFM on Nasdaq; www.wholefoodsmarket.com), is the largest retailer of natural and organic foods in the U.S. The company was founded in Austin, Texas, in 1980, when three local businessmen decided the natural food industry was ready for a supermarket format.

...

4 min read

Jim Bates