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.

WESTJET AIRLINES $24.67 (Toronto symbol WJA; TSINetwork Rating: Extra Risk)(1-877-493-7853; www.westjet.com; Shares outstanding: 125.8 million; Market cap: $3.1 billion; Dividend yield: 2.3%) serves 93 destinations in North America, Central America, the Caribbean and Europe. Its fleet of 107 modern Boeing 737s are 30% more fuel efficient than older jets.

In June 2013, the company launched WestJet Encore, its Canadian regional airline. This business now operates 22 Bombardier Q400 NextGen turboprop planes, which seat 78 passengers.

The Canadian airline market remains highly competitive, especially with Air Canada expanding its Rouge budget airline to serve more leisure destinations in Europe, the Caribbean, Mexico and the U.S. However, WestJet is now taking delivery of its Boeing 767 widebody aircraft. That will let it compete with Air Canada internationally; it could add more cities in Europe, as well as South America or Asia.

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Two questions—on Greek recovery and a tech ETF—bring our response on the risks and rewards of profiting from market trends through ETFs.
Aggressive growth has given CF Industries a strong position in natural gas fertilizers, but in this field our buy goes to a Canadian rival.
Pumping $27 billion into network upgrades helps keep Telus competitive in the telecom race we see it as a clear buy among blue chip stocks.
S&P 500 ETF,Dow Jones ETF,Powershares ETF
Today, a look at how good companies deal with adverse circumstances. Two dominant Japanese carmakers, Toyota and Honda, have had to deal with massive recalls and repairs from faulty airbag inflators. But both continue to benefit from strong international sales and a lower Japanese yen. Faulty airbag inflators made by Takata Corp. have forced Toyota to recall 8.1 million vehicles since 2008, while Honda has had to fix 20 million cars....
HOME CAPITAL GROUP INC. $32 (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 70.2 million; Market cap; $2.2 billion; Price-to-sales ratio: 3.9; Dividend yield: 2.8%; TSINetwork Rating: Average; www.homecapital.com) caters to borrowers who don’t meet the stricter standards of traditional banks, such as the self-employed and recent immigrants with limited credit histories. The stock fell 20% after the company said it sold $1.29 billion of new home mortgage loans in the second quarter of 2015, down 15.7% from $1.53 billion a year earlier. Home Capital sells most of these loans through independent mortgage brokers, and it has cut ties with some of them over concerns about inaccurate loan applications. In all, these brokers supplied 15% of the company’s new mortgages....
LOBLAW COMPANIES LTD. $67 (Toronto symbol L; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 412.6 million; Market cap: $27.6 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.5%; TSINetwork Rating: Above Average; www.loblaw.ca) announced that 13,600 unionized employees at 69 of its Ontario supermarkets have voted to accept a six-year labour contract. The deal includes wage increases and new pension protections. The company continues to benefit from the recent closure of Target’s 133 Canadian stores, as well as its 2014 acquisition of Shoppers Drug Mart. Even so, the grocery business remains highly competitive, particularly in Ontario. This new labour deal cuts Loblaw’s risk. Loblaw is a buy.
BCE INC. $55 (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 841.9 million; Market cap: $46.3 billion; Price-to-sales ratio: 2.2; Dividend yield: 4.7%; TSINetwork Rating: Above Average; www.bce.ca) is Canada’s largest telephone provider, with 7.0 million customers in Ontario, Quebec and the Atlantic provinces. It also has 3.3 million highspeed Internet users and 2.7 million TV subscribers. This business supplies 57% of BCE’s revenue. The company also sells wireless services (31% of revenue) to 8.1 million customers across Canada, and its Bell Media segment (12%) owns CTV Television, specialty channels and radio stations. In the three months ended March 31, 2015, BCE’s overall earnings rose 12.6%, to $705 million from $626 million a year earlier. But per-share profits gained just 3.7%, to $0.84 from $0.81, on more shares outstanding. Revenue rose 2.8%, to $5.24 billion from $5.10 billion....
TRANSCANADA CORP. $51 (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 708.9 million; Market cap: $36.2 billion; Price-to-sales ratio: 3.5; Dividend yield: 4.1%; TSINetwork Rating: Above Average; www.transcanada.com) still hopes its Keystone XL pipeline will be approved, even though Alberta’s new NDP government has withdrawn the province’s support for the project. Keystone XL would pump crude from Alberta’s oil sands to the U.S. Gulf Coast. Meanwhile, the company has improved its efficiency and adopted new technologies, both of which are helping it pump more oil through its existing Keystone pipeline between Alberta and refineries in Illinois. TransCanada recently freed up 10,000 to 15,000 barrels on this 590,000-barrel-a-day line. Long-term contracts account for 90% of Keystone’s current capacity, so the extra space will help TransCanada meet demand for urgent shipments. TransCanada is a buy.