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.

NVIDIA CORP. $37 (Nasdaq symbol NVDA; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 544.6 million; Market cap: $20.2 billion; Price-to-sales ratio: 3.9; Dividend yield: 1.2%; TSINetwork Rating: Average; www.nvidia .com) is a leading designer of 3D-capable video chips, which help video games run more smoothly and appear more lifelike. In the fiscal year ended January 31, 2016, Nvidia’s revenue rose 7.0%, to a record $5.0 billion from $4.7 billion a year earlier. Sales of its graphic video chips (84% of the total revenue) gained 9.1%. That’s because Nvidia is doing a good job developing chips for virtual reality devices, self-driving cars and data centres. However, sales of its Tegra chips for mobile devices (11%) fell 3.5%. Licensing revenues (5%) were flat. Nvidia earned $929 million in fiscal 2016. That’s up 16.0% from $801 million a year earlier. Per-share profits rose 17.6%, to $1.67 from $1.42, on fewer shares outstanding....
MICROSOFT CORP. $51 (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 7.9 billion; Market cap: $402.9 billion; Price-to-sales ratio: 4.6; Dividend yield: 2.8%; TSINetwork Rating: Above Average; www.microsoft.com) is the world’s largest software company. Its Windows operating system powers about 90% of the world’s personal computers. Microsoft’s other main product— its Office suite, which includes a word processor (Word) and spreadsheet program (Excel)— controls 90% of its market. The company also makes computer-hardware products, including its Xbox video game console and Surface tablet computer. High U.S. dollar dampens results ...
NEWMONT MINING CORP. $32 (www.newmont.com) earned $0.34 a share in the first quarter of 2016, down 26.1% from $0.46 a year earlier. Higher gold and copper production pushed up its operating costs and offset a 3.0% rise in revenue, to $2.03 billion from $1.97 billion....
L BRANDS INC. $79 (www.lb.com) owns several home and apparel retail chains, including the Victoria’s Secret lingerie stores. As part of a new strategy, it will reorganize this business into three divisions: Victoria’s Secret Lingerie, Pink (aimed at younger shoppers), and Victoria’s Secret Beauty....
BROADRIDGE FINANCIAL SOLUTIONS $60.43 New York symbol BR; TSINetwork Rating: Average) (201-714-3000; www.broadridge.com; Shares outstanding: 118.8 million; Market cap: $7.2 billion; Dividend yield: 2.0%) serves the investment industry in two main areas: investor communications, and securities processing and transaction clearing. It processes 90% of all proxy votes in the U.S. and Canada. Excluding one-time items, Broadridge earned $46.5 million in its fiscal 2016 first quarter, which ended December 31, 2015. That’s up 16.5% from $39.9 million a year earlier. Earnings per share rose 18.8%, to $0.38 from $0.32, on fewer shares outstanding. Revenue gained 11.1%, to $638.9 million from $574.6 million. Investor communications makes up 72% of Broadridge’s revenues. Back-office securities processing and transaction clearing make up the remaining 28%; they also provide the company with strong long-term growth prospects in the U.S. and globally....
STANTEC INC. $33.78 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288; www.stantec.com; Shares outstanding: 93.9 million; Market cap: $3.1 billion; Dividend yield: 1.3%) sells a range of consulting, project-delivery, design and technology services. Stantec has made a big acquisition that will give it a major global presence in the water infrastructure industry. It’s paying $795 million U.S. to buy MWH Global. The infrastructure firm has 187 offices in 26 countries. MWH Global works on a number of large water infrastructure projects around the world, including the Panama Canal Third Set of Locks project. It also develops dams, hydroelectric power plants, water treatment facilities, coastal restoration and environmental assessment programs....
PASON SYSTEMS $17.91 (Toronto symbol PSI; TSINetwork Rating: Speculative) (403-301-3400; www.pason.com; Shares outstanding: 84.1 million; Market cap: $1.6 billion; Dividend yield: 3.8%) serves the drilling contractors of oil and gas firms in Canada, the U.S., Mexico and Argentina. The company provides them with rental equipment for monitoring and managing landbased oil rigs. Its systems also let clients remotely collect data from their drilling operations. For the three months ended December 31, 2015, Pason’s revenue fell 56.7%, to $59.8 million from $138.2 million a year earlier. A rise in the U.S. dollar partially offset the slowdown in oil and gas drilling. The company lost $841,000, or $0.01 a share, compared to a profit of $47.2 million, or $0.57, a year ago. The lower revenue was the main reason for the decline. Cash flow per share was positive, though it was down sharply, to $0.21 from $0.72....
COMPUTER MODELLING GROUP $10.24 (Toronto symbol CMG; TSINetwork Rating: Speculative) (403-531-1300; www.cmgl.ca; Shares outstanding: 78.8 million; Market cap: $806.5 million; Dividend yield: 3.9%) sells software and services that help conventional oil and gas producers create 3D models of reservoirs. That lets them squeeze more out of those deposits by injecting steam or chemicals. Without the technology, they typically recover only 25% to 30% of the oil and gas. Producers using hydraulic fracturing, or fracking, methods also use Computer Modelling’s software to determine the best drilling locations and depths. In the three months ended December 31, 2015, the company’s revenue fell 15.8%, to $21.2 million from $25.2 million a year earlier. Software licensing revenue (94% of the total) fell 13.8%, while consulting and professional services revenue (6%) fell 40.0%....
SASOL LTD. (ADR) $32.23 (New York symbol SSL; TSINetwork Rating: Extra Risk) (082- 883-9697; www.sasol.com; ADRs outstanding: 651.4 million; Market cap: $21.3 billion; Dividend yield: 2.4%) is a South Africa-based company that converts coal and natural gas into motor fuels. It also produces oil and gas and mines coal. Sasol now plans to delay the completion of its $8.9 billion plant in Lake Charles, Louisiana. Production will now start in 2019, rather than 2018. When finished, the facility will convert natural gas, or ethane, into ethylene— a chemical used to make plastics and other consumer products. The new plant should triple Sasol’s U.S. production. It should also help to offset some of the currency and political risks of operating in South Africa....