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.

AT&T INC. $34 (New York symbol T; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 6.2 billion; Market cap: $210.8 billion; Price-to-sales ratio: 1.5; Dividend yield: 5.5%; TSINetwork Rating: Average; www.att.com) is the largest wireless provider in the U.S., with 126.4 million subscribers. It also sells phone, TV and high-speed Internet access to 64.1 million users. The company recently completed its $48.5-billion purchase (70% stock and 30% cash) of DirecTV, which has 19.6 million satellite TV customers in the U.S. and 12.5 million in Latin America. In the three months ended September 30, 2015, DirecTV boosted AT&T’s revenue by 18.6%, to $39.1 billion from $33.0 billion a year earlier. Excluding costs related to the deal and other unusual items, earnings rose 13.8%, to $0.74 from $0.65....
FORD MOTOR CO. $14 (New York symbol F; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 3.9 billion; Market cap: $54.6 billion; Price-to-sales ratio: 0.4; Dividend yield: 4.3%; TSINetwork Rating: Extra Risk; www.ford.com) plans to spend $4.5 billion to develop new electric-powered cars. Under this initiative, Ford will launch 13 new allelectric and plug-in hybrid vehicles by 2020. This will help it achieve its goal of controlling 40% of this market, up from 13% now. Offering more electric vehicles also helps Ford comply with tougher emission standards that will take effect in 2025. Ford is a buy.
L BRANDS INC. $98 (New York symbol LB; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 289.4 million; Market cap: $28.4 billion; Price-to-sales ratio: 2.4; Dividend yield: 2.1%; TSINetwork Rating: Average; www.lb.com) owns the Victoria’s Secret lingerie chain (63% of sales) and the Bath & Body Works personal care products stores (28%). Smaller chains, including La Senza (lingerie) in Canada and Henri Bendel (jewellery and accessories) in the U.S., supply the remaining 9% of sales. In November 2015 (which includes the important Black Friday promotion), the company’s sales rose 8.4% to $1.17 billion from $1.08 billion in November 2014. Overall same-store sales gained 7%. Same-store sales rose 6% at Victoria’s Secret, while this division’s online and catalogue sales jumped 12%. Seasonal home fragrances, soaps and sanitizers also spurred a 7% same-store sales gain at the company’s Bath & Body Works stores....
MOTOROLA SOLUTIONS INC. $70 (New York symbol MSI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 176.7 million; Market cap: $12.4 billion; Price-to-sales ratio: 2.1; Dividend yield: 2.3%; TSINetwork Rating: Average; www.motorolasolutions.com) is buying Airwave, which provides two-way radio and other communications services to over 300 emergency and public service agencies in the U.K....
HEWLETT-PACKARD ENTERPRISE CO. $15 (www.hpe.com) should benefit as more businesses shift to cloud computing systems. However, this new firm faces strong competition from larger, better-established cloud providers like Amazon Web Services and IBM. Hold.
HP INC. $12 (www.hp.com) took its current form on November 1, 2015, when the old Hewlett-Packard Co. split into two firms. HP Inc. focuses on personal computers and printers, while Hewlett-Packard Enterprise (see below) sells computing services and products, like servers and analytics software, to businesses and governments....
ENERFLEX LTD., $11.78 (Toronto symbol EFX; TSINetwork Rating: Extra Risk) (403-387-6377; www.enerflex.com; Shares outstanding: 77.7 million; Market cap: $915.3 million; Dividend yield: 2.4%) rents and sells equipment and services for natural gas production, including compression and processing plants, refrigeration equipment and power generators. The company has a strong position in three fastgrowing markets: U.S. and Canadian shale gas production; Australian natural gas from coal beds; and conventional Middle Eastern natural gas, which is converted to liquefied natural gas (LNG) for shipping. Natural gas prices are low, but companies continue to increase their drilling and production. In the quarter ended September 30, 2012, Enerflex’s revenue jumped 31.0%, to $369.7 million from $282.3 million a year ago. Strong demand from international customers pushed the company’s sales higher....
ALIMENTATION COUCHETARD $63.53 (Toronto symbol ATD.B: TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couchetard. com; Shares outstanding: 567.4 million; Market cap: $35.9 billion; Dividend yield: 0.4%) has agreed to buy Ireland’s Topaz chain. The price was not disclosed but is likely in the $400-million range. Topaz is the country’s leading operator of gas stations and convenience stores. The chain consists of 464 locations across Ireland. This purchase is smaller than Couche-Tard’s $2.7-billion purchase of Norway’s Statoil Fuel & Retail gas station chain in June 2012 and The Pantry, which it bought for $1.7 billion in March 2015. The Pantry operates 1,500 convenience stores in the U.S....
TRILOGY ENERGY CORP. $3.35 (Toronto symbol TET; TSINetwork Rating: Speculative) (403-290-2900; www.trilogyenergy.com; Shares outstanding: 105.4 million; Market cap: $432.8 million; No dividends paid) owns oil and gas properties in central Alberta’s Kaybob and Grande Prairie areas. About 64% of Trilogy’s production is natural gas. The remaining 36% is oil. In the three months ended September 30, 2015, Trilogy produced 25,090 barrels of oil equivalent a day (including gas), down 28.6% from 35,125 barrels a year earlier. However, pipeline outages cut about 2,600 barrels a day from the latest figure. Cash flow per share fell sharply, to $0.18 from $0.69, on the production drop and lower oil and gas prices....