Pat McKeough

A professional investment analyst for more than 30 years, Pat has developed a stock-selection technique that has proven reliable in both bull and bear markets. His proprietary ValuVesting System™ focuses on stocks that provide exceptional quality at relatively low prices. Many savvy investors and industry leaders consider it the most powerful stock-picking method ever created.

As early as 1980, Pat was recognized as #1 in the world of published investment advice by the Washington, DC–based Newsletter Publishers Association, and he was the first multi-year winner of The Globe and Mail’s stock picking contest.

Both CBS MarketWatch and The Hulbert Financial Digest recognized Pat as one of North America’s top stock analysts. The Wall Street Journal called him “one of only four investment newsletter advisors who have managed to serve their readers well over the long haul.”

A best-selling Canadian author, he wrote Riding the Bull, his 1993 book that predicted the stock-market boom of the last half of that decade. Through his many television appearances, he is well-known to investors for his insightful analysis and his candid, unpretentious style.

Bottom line: Pat’s conservative, reduced-risk strategy is a proven approach to safe investing.

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To determine when to buy an ETF, some investors use technical analysis and other tools. But you need to dig deeper.
MONSANTO CO. $112 (New York symbol MON, Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 436.8 million; Market cap: $48.9 billion; Price-tosales ratio: 3.5; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.monsanto.com) develops and sells technology-based agricultural products, such as genetically modified seeds, to farmers, grain processors and food companies. It also sells weed- and pest-control products. The company is now the target of a $122.00-a-share, all-cash takeover bid by Bayer AG— the German farm chemical and drugmaker. Bayer feels the merger would help both firms compete with rivals Dow Chemical Co. and DuPont Co., which plan to merge later this year. As well, China National Chemical Corp. agreed in February 2016 to acquire Switzerland- based Syngenta AG....
VISA INC. $79 (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 2.4 billion; Market cap: $189.6 billion; Price-to-sales ratio: 13.3; Dividend yield: 0.7%; TSINetwork Rating: Above Average; www.visa.com) operates the world’s largest electronic payments network. It can process over 65,000 credit, debit, prepaid and commercial transactions per second. Visa gets most of its revenue from the fees it charges card issuers and merchants that use its network. These fees are based on transaction volumes and other factors. The banks that issue the credit cards are responsible for evaluating customer creditworthiness and collecting payments, not Visa....
AMERICAN EXPRESS CO. $65 (New York symbol AXP, Conservative Growth Portfolio, Finance sector; Shares outstanding: 951.0 million; Market cap: $61.8 billion; Price-to-sales ratio: 2.0; Dividend yield: 1.8%; TSINetwork Rating: Average; www.americanexpress.com) is one of the world’s largest issuers of payment cards, with 118.6 million cards in use across 130 countries. Amex issues two types of cards: charge cards, which have no preset spending limit and must be paid in full each month; and traditional credit cards, which let users carry a balance. The company is also a bank that accepts deposits and makes loans. It cuts its credit risk by mainly catering to clients with above-average incomes and good credit histories. In the first quarter of 2016, Amex wrote off just 2.0% of its U.S. loans compared to 2.3% a year earlier. Its international write-off rate fell to 2.1% from 2.4%....
T. ROWE PRICE GROUP INC. $77 (Nasdaq symbol TROW; Aggressive Growth and Income Portfolios, Finance sector; Shares outstanding: 248.2 million; Market cap: $19.1 billion; Price-to-sales ratio: 4.6; Dividend yield: 2.8%; TSINetwork Rating: Average; www.troweprice.com) sells mutual funds and wealth management services. Due to the downturn in stock markets since the start of the year, T. Rowe Price’s assets under management fell 1.0%, to $764.6 million as of March 31, 2016, from $772.7 billion a year earlier. However, its assets under management have increased 0.2% from $763.1 billion at the end of 2015. T. Rowe Price’s fee income varies with the value of the securities it administers, so its revenue during the first quarter of 2016 declined 3.2%, to $994.1 million from $1.0 billion....
APPLE INC. $100 (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.5 billion; Market cap: $550.0 billion; Price-to-sales ratio: 2.4; Dividend yield: 2.3%; TSINetwork Rating: Average; www.apple.com) makes a variety of electronic devices, including iPhone smartphones, Mac computers, iPad tablets, iPod music players and Apple watches. It also sells software, movies and music through its iTunes online store. The company recently invested $1 billion for an undisclosed minority stake in Didi Chuxing. Similar to Uber, this private firm operates the largest ride-sharing service in China. The purchase should help Apple gain more insight into China’s fast-growing Internet economy. That’s important because it wants to expand Apple Pay— its mobile payment system— in that country. This investment could also help Apple improve its in-car entertainment and information products....
C.R. BARD INC. $220 (New York symbol BCR; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 73.3 million; Market cap: $16.1 billion; Price-to-sales ratio: 4.7; Dividend yield: 0.4%; TSINetwork Rating: Above Average; www.crbard.com) makes medical devices in four main areas: oncology products that detect and treat various types of cancer; vascular products such as stents and catheters; urology goods, including drainage and incontinence devices; and surgical tools. The company continues to benefit from its new growth strategy, which involves selling less-profitable businesses and buying other medical-device makers. Bard earned $177.0 million in the quarter ended March 31, 2016, up 9.5% from $161.6 million a year earlier. Earnings per share rose 11.4%, to $2.34 from $2.10, on fewer shares outstanding. Sales gained 6.6%, to $873.5 million from $819.7 million. Without the high U.S. dollar’s negative impact, sales rose 8%. The company expects its earnings for all of 2016 will rise about 11.5%, to between $10.05 and $10.18 a share. The stock trades at 21.7 times the midpoint of that range. That’s still a reasonable multiple, as Bard products are typically only used once so customers must continually buy new ones....
BUCKEYE PARTNERS L.P. $73 (New York symbol BPL; Income Portfolio, Utilities sector; Units outstanding: 130.3 million; Market cap: $9.5 billion; Price-to-sales ratio: 3.0; Dividend yield: 6.6%; TSINetwork Rating: Average; www.buckeye.com) operates 9,700 kilometres of pipelines in the northeastern and Midwestern U.S. Its network pumps gasoline, jet fuel and other petroleum products. In the past few years, Buckeye has steadily expanded its oil storage operations. It now has 117 terminals in the U.S. with a total capacity of 55.6 million barrels. The company also owns seven marine storage terminals that serve ocean-going oil tankers in New York City, Corpus Christi, Texas, Puerto Rico, St. Lucia and The Bahamas. These facilities have a combined capacity of 62.3 million barrels....
DIEBOLD INC. $25 (New York symbol DBD; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 65.2 million; Market cap: $1.6 billion; Price-to-sales ratio: 0.7; Dividend yield: 4.6%; TSINetwork Rating: Average; www.diebold.com) is a leading maker of automated teller machines. It also makes safes and vaults. Diebold is buying German ATM maker, Wincor Nixdorf AG, for $1.8 billion in cash and shares. The purchase will make Diebold the world’s largest maker of ATMs, with roughly 35% of the global market. It should complete the purchase in the second half of 2016. Meantime, Diebold’s revenue in the three months ended March 31, 2016, fell 11.3%, to $509.6 million from $574.8 million a year earlier. Overseas markets supply 60% of its revenue, so the high U.S. dollar hurts the contribution of its foreign operations. Excluding exchange rates, revenue fell 6.1%....
NCR CORP. $30 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 123.9 million; Market cap: $3.7 billion; Price-to-sales ratio: 0.6; No dividends paid; TSINetwork Rating: Average; www.ncr.com) makes automated teller machines, cash registers, self-serve checkouts and kiosks for theatres and arenas. In the quarter ended March 31, 2016, NCR’s revenue fell 2.2%, to $1.4 billion from $1.5 billion a year earlier. Lower sales of ATMs offset higher revenue from its software and services operations. If you factor out currency rates, revenue was flat. Earnings in the quarter fell 16.4%, to $61 million from $73 million. Due to fewer shares outstanding, earnings per share declined at a slower rate of 11.6%, to $0.38 from $0.43....