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
What does a diversified portfolio look like? A well-diversified portfolio balances risk by spreading investment holdings out by industry sector and other factors
ENBRIDGE INC. $43 (Toronto symbol ENB; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 863.7 million; Market cap: $37.1 billion; Price-to-sales ratio: 1.1; Dividend yield: 4.9%; TSINetwork Rating: Above Average; www. enbridge.com) will make a final decision on its proposed Northern Gateway pipeline in the second half of 2016....
ENCANA CORP. $9.14 (Toronto symbol ECA; Con- servative Growth Portfolio, Resources sector; Shares outstanding: 845.7 million; Market cap: $7.7 billion; Price-to-sales ratio: 1.4; Dividend yield: 4.2%; TSINetwork Rating: Average; www.encana.com) raised $2.7 billion in 2015 by selling less important properties (all amounts except share price and market cap in U.S. dollars). These sales are part of the company’s plan to focus on four key projects: Montney (B.C.), Duvernay (Alberta) and Eagle Ford and Permian (both in Texas). These fields produce large amounts of oil and natural gas liquids, such as propane and butane, which cuts Encana’s reliance on natural gas. They’re also efficient, which helps the company cope with low oil and gas prices. Because of these asset sales, Encana’s production fell 15.4% in the three months ended September 30, 2015, to 398,300 barrels a day (65% gas and 35% oil and natural gas liquids) from 470,600 a year earlier....
FINNING INTERNATIONAL INC. $18 (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 169.3 million; Market cap: $3.0 billion; Price-to-sales ratio: 0.5; Dividend yield: 4.1%; TSINetwork Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment. Its main customers are in the oil, mining, forest-products and construction industries. Weaker commodity prices continue to hurt equipment demand. In response, Finning has laid off 13% of its workforce and closed 11 of its locations in Western Canada. The company is now looking at other ways to lower its costs, such as shipping parts directly to customers instead of through dealerships. Meanwhile, Finning’s earnings fell 42.4% in the three months ended September 30, 2015, to $0.19 a share from $0.33 a year earlier. Without one-time items, the company earned $0.34 a share in the latest quarter....
TELUS CORP. $40 (Toronto symbol T; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 600.1 million; Market cap: $24.0 billion; Price-to-sales ratio: 2.0; Dividend yield: 4.4%; TSINetwork Rating: Above Average; www.telus.com) plans to launch several new cloud computing services that will use Microsoft’s cloud software and Internet equipment from Cisco Systems. The company aims to work closely with its clients to develop cloud-based systems that are secure, fast and easily expandable. More businesses are shifting to a cloud platform, as it lets them avoid the high cost of buying new computers and continuously updating software. Over the next five years, companies will probably spend up to eight times more on cloud services than non-cloud technologies....
ATCO LTD. (Toronto symbols ACO.X [class I non-voting] $34 and ACO.Y [class II voting] $34; Income Portfolio, Utilities sector; Shares outstanding: 115.1 million; Market cap: $3.9 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.atco.com) operates power plants in Western Canada, the U.K. and Australia. It also builds temporary buildings for construction, mining and energy-exploration firms. Weak commodity prices are hurting demand for electricity and shelters, particularly in Alberta. In response, ATCO is cutting 4% of its global workforce. A new carbon tax in Alberta has also weighed on ATCO’s stock. However, most of the company’s power plants burn natural gas, not coal, which should help reduce the impact of the tax. In addition, ATCO is looking at replacing some of its current facilities with a new hydroelectric plant in northern Alberta....
SHAWCOR LTD. $27 (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares out- standing: 64.5 million; Market cap: $1.7 billion; Price-to-sales ratio: 1.0; Dividend yield: 2.2%; TSINetwork Rating: Average; www.shawcor.com) has acquired certain businesses from Flint Field Services....
FORTIS INC. $36 (www.fortisinc.com) has agreed to buy Chevron Corp.’s 93.8% stake in the Aitken Creek underground gas storage facility in northeastern B.C.; BP Canada owns the remaining 6.2%. Fortis will pay $266 million U.S. when it completes the purchase in early 2016....
ROYAL BANK OF CANADA $75 (www.rbc.com) earned $9.9 billion in its 2015 fiscal year, which ended October 31, 2015, up 8.6% from $9.1 billion in fiscal 2014. Earnings per share gained 9.4%, to $6.66 from $6.09, on fewer shares outstanding. Strong gains at its retail banking, securities trading and custodial operations offset weaker results at the wealth management and insurance operations....
Mining stocks Alcoa aims to unleash value for investors by spinning off its fast-growing business in engineered aluminium products.