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.

AGILENT TECHNOLOGIES INC. $36 (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 332.0 million; Market cap: $12.0 billion; Price-to-sales ratio: 1.6; Dividend yield: 1.1%; TSINetwork Rating: Average; www.agilent.com) split into two publicly traded firms on November 1, 2014.

One company kept the Agilent name and stock symbol and focuses on testing equipment for medical research labs. The other firm, called Keysight Technologies (see right), makes testing systems for electronics.

Under the spinoff, Agilent shareholders received one Keysight share for every two shares they held.

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MONSANTO CO. $97 (New York symbol MON, Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 467.8 million; Market cap: $45.4 billion; Price-tosales ratio: 2.7; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.monsanto.com) has dropped its takeover offer for Switzerland-based rival Syngenta AG, the world’s largest maker of pesticides, herbicides and other agricultural chemicals.

A merger would have let Monsanto and Syngenta jointly develop new genetically modified seeds for corn, soybeans and other crops. Syngenta’s expertise would also improve Monsanto’s pesticide products.

In addition, the new firm could cut costs and improve its efficiency by combining distribution networks. Monsanto recently increased its bid by 5%, to $47 billion in cash and shares.

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3M COMPANY $143 (New York symbol MMM; Conservative Growth and Income Portfolios, Manufacturing & Industry sector; Shares outstanding: 624.8 million; Market cap: $89.3 billion; Price-to-sales ratio: 2.8; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.3m.com) started up in 1902, when it was called the Minnesota Mining & Manufacturing Company.

3M started off making sandpaper and abrasives for industrial clients. It later developed other consumer and manufacturing-related goods, such as pressure-sensitive masking and packaging tape, recording tape and reflective highway markings.

Today, 3M makes more than 55,000 items, including air purifiers, medical device components and bandages. Top-selling brands include Post-it notes, Scotch tape, Scotch-Brite cleaning products, Scotchguard protection and Thinsulate insulation.

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Air Boss of America has enjoyed a big bounce in its shares with its rubber products. We look at whether this growth stock can keep rising.
Junior mining stocks Sherritt and Amerigo are adapting to lower commodity prices in different ways, but we see both as aggressive buys.
ENERFLEX LTD. $11.23 (Toronto symbol EFX; TSINetwork Rating: Extra Risk) (403-387-6377; www.enerflex.com; Shares outstanding: 79.0 million; Market cap: $924.9 million; Dividend yield: 3.0%) rents and sells equipment and services for natural gas production, including compression and processing plants, refrigeration gear and power generators.

On June 30, 2014, the company closed its $431- million U.S. acquisition of two businesses owned by privately held Axip Energy Services: an international contract compression and processing subsidiary and a division that provides aftermarket services.

In the three months ended June 30, 2015, Enerflex’s revenue fell 8.3%, to $389.7 million from $424.9 million a year earlier. But earnings per share more than doubled, to $0.34 from $0.15. International contributions from the Axip businesses pushed up earnings and almost offset weaker revenue in the U.S. and Canada. However, falling oil and gas prices are now hurting the company’s orders.

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TOROMONT INDUSTRIES LTD. $36.75 (Toronto symbol TIH; TSINetwork Rating: Extra Risk) (416-667- 5511; www.toromont.com; Shares outstanding: 77.6 million; Market cap: $2.9 billion; Dividend yield: 1.9%) distributes a broad range of industrial equipment, including machinery made by Caterpillar Inc. It also makes refrigeration systems through its CIMCO division.

The company completed the spinoff of Enerflex Ltd. (see right) in 2011. Shareholders received shares of both the new Toromont Industries and Enerflex.

In the quarter ended June 30, 2015, Toromont’s revenue rose 16.6%, to $484.5 million from $415.6 million a year earlier. Earnings gained 26.1%, to $36.4 million, or $0.47 a share, from $28.9 million or $0.37.

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SYMANTEC CORP. $21.86 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (650-527- 8000; www.symantec.com; Shares outstanding: 680.7 million; Market cap: $14.8 billion; Dividend yield: 2.7%) sells computer-security technology, including antivirus and email-filtering software, to businesses and consumers.

In 2014, Symantec said it would split into two publicly traded firms. One would keep the Symantec name and focus on antivirus and security software and services. The other, called Veritas Technologies, would consist of the company’s information management business, which makes products for data backup and recovery.

However, Symantec has now decided to sell Veritas to a group of private investors for $8.0 billion. It expects to close the deal on January 1, 2016.

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CAMECO CORP. $18.16 (Toronto symbol CCO; TSINetwork Rating: Extra Risk) (306-956-6200; www.cameco.com; Shares outstanding: 395.8 million; Market cap: $7.3 billion; Dividend yield 2.2%) has rebounded 10.8% after falling to $16.73 on July 17, 2015. That’s partly because Japan’s Kyushu Electric Power Company has restarted one of its nuclear reactors. This is the first nuclear station to restart since the country’s government shut them all down after the March 2011 earthquake and tsunami damaged the Fukushima plant, allowing radiation to escape. Kyushu plans to restart a second reactor in October.

Japan’s return to nuclear power likely won’t spur uranium prices, at least in the short term. That’s because the country’s power companies will have to use up their large inventories before buying more.

However, uranium’s long-term outlook is bright, particularly as China and India plan to build 93 new reactors by 2040.

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