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.

Posts by the author
The pendulum theory grew out of Sir Isaac Newton’s 17th-century studies of gravity and physics, particularly his second law of motion. Yet the theory turns up in discussions of all sorts of non-mechanical topics. This includes investors’ efforts at understanding the stock market.
NEW GOLD $5.06 (Toronto symbol NGD; TSINetwork Rating: Speculative) (888-315-9715; www.newgold.com; Shares outstanding: 509.5 million; Market cap: $2.5 billion; No dividends paid) has moved up 43% since the start of the year on higher gold prices—and its strong operating performance. New Gold has four mines: the Mesquite project in the U.S.; Cerro San Pedro in Mexico; the Peak mine in Australia; and the New Afton mine in B.C. In the three months ended December 31, 2015, New Gold’s cash flow per share rose 7.1%, to $0.15 from $0.14 a year earlier. (All figures except share price and market cap in U.S. dollars.) Production rose 24.2% in the latest quarter, to 131,700 ounces from 106,000. That offset falling gold prices in 2015....
WEIGHT WATCHERS INTERNATIONAL $13.70 (New York symbol WTW; TSINetwork Rating: Extra Risk) (212-589-2700; www.weightwatchers.com; Shares outstanding: 63.6 million; Market cap: $852.9 million; No dividends paid) offers weight-loss services in 23 countries. The company promotes a program of lifestyle changes through 36,000 weekly meetings and its website. Oprah Winfrey bought 10% of the company in October 2015. She also joined its board of directors. Her goal has been to promote the company and help it reverse a steady decline over the last few years. In the three months ended January 2, 2016, Weight Watchers’ revenue fell 20.8% to $259.2 million from $327.8 million a year earlier. The company lost $0.03 a share in the latest quarter, compared to a profit of $0.09 a year ago....
ATLANTIC TELE-NETWORK $72.81 (Nasdaq symbol ATNI; TSINetwork Rating: Speculative) (340- 777-8000; www.atni.com; Shares outstanding: 16.1 million; Market cap: $1.2 billion; Dividend yield: 1.8%) owns wireless and wireline (traditional telephone and Internet) operations in the U.S. Southwest, New England, New York State, Bermuda, parts of the Caribbean, and Guyana. It also owns solar power plants that sell their electricity under long-term contracts. In the three months ended December 31, 2015, the company’s revenue fell 6.3%, to $82.9 million from $88.5 million a year earlier. The decline was mostly due to the sale of its Turks and Caicos business in early 2015. At the same time, Atlantic spent heavily on its network to support increased traffic. Earnings per share dropped 69.4%, to $0.22 from $0.72, on more shares outstanding....
FAIR ISAAC CORP. $102.33 (New York symbol FICO; TSINetwork Rating: Average) (415-472-2211; www.fairisaac.com; Shares outstanding: 31.4 million; Market cap: $3.1 billion; Dividend yield: 0.1%) is now applying its FICO credit-scoring software expertise to other businesses. Fair Isaac plans to soon launch a cybersecurity product that uses artificial intelligence to find abnormal activity on corporate networks. That technology is similar to what banks use to identify fraud. A number of FICO’s existing customers tested the new security product. It was in development for more than two years....
LEON’S FURNITURE LTD. $14.25 (Toronto symbol LNF; TSINetwork Rating: Average) (416-243-7880; www.leons.ca; Shares outstanding: 71.5 million; Market cap: $1.0 billion; Dividend yield: 2.8%) has steadily increased its number of stores, from 27 in 2003 to 80 today. The company more than quadrupled in size overnight with the $700 million purchase of its main rival, The Brick, in March 2013. That chain has 221 locations across Canada and continues to operate separately. Leon’s plans to expand again: it’s taking over the leases on eight Sears Home stores, operated by money losing Sears Canada. It will convert those showrooms to Leon’s stores over the summer....
BMTC GROUP $13.50 (Toronto symbol GBT.A; TSINetwork Rating: Extra Risk) (514-648-5757; No website; Shares outstanding: 37.9 million; Market cap: $513.7 million; Dividend yield: 1.8%) has 38 outlets and is one of Quebec’s biggest retailers of furniture, electronics and appliances. The company mainly sells these items through its two affiliates: Brault & Martineau and Ameublements Tanguay. In March 2012, BMTC introduced a new banner, Economax. The chain’s 11 locations offer lower-priced products. The first four stores are former Brault & Martineau liquidation centres. In the three months ended December 31, 2015, BMTC’s sales rose 3.9%, to $190.3 million from $183.2 million a year earlier....
NISSAN MOTOR (ADR) $19.03 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111; www.nissan-global.com; ADRs outstanding 2.3 billion; Market cap: $43.8 billion; Yield: 3.1%) plans to buy back as many of 300 million of its common shares, or 6.7% of the total outstanding. The share repurchase will cost as much as 400 billion yen, or $3.5 billion U.S. The company plans to complete those buybacks by December 22, 2016. Nissan earned a record 535 billion yen in its fiscal year ended March 31, 2016. The company also held 860 billion yen in cash on December 31, 2015, and plans to use some of the money to implement that big share buyback....
SIERRA WIRELESS $18.58 (Toronto symbol SW; TSINetwork Rating: Extra Risk) (604-231-1100; www.sierrawireless.com; Shares outstanding: 32.3 million; Market cap: $577.9 million; No dividends paid) makes modules that connect products—including smart electricity meters and vehicles—to the Internet. This is known as machine- to-machine networking or, more generally, as the Internet of Things. In the three months ended December 31, 2015, the company’s revenue fell 2.8% from a year earlier. That’s a drop from $149.1 million to $144.8 million (all figures except share price and market cap in U.S. dollars). Excluding one-time items, the company earned $2.5 million, or $0.08 a share, down sharply from $9.1 million, or $0.29, a year earlier....
MENTOR GRAPHICS $19.74 (Nasdaq symbol MENT; TSINetwork Rating: Extra Risk) (503-685-7000; www.mentor.com; Shares o/s: 117.5 million; Market cap: $2.3 billion; Divd. yield: 1.1%) makes systems that improve the design of electronic products and speed up their development. Its systems are used in a range of industries. The auto business is one of the company’s biggest growth areas because of the shift from mechanical to electronic systems: electronics now make up roughly 40% of a car’s cost. In the three months ended January 31, 2016, Mentor’s revenue fell 23.2%, to $337.3 million from $439.1 million a year earlier....