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.

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If you want to find out how to hire a stock broker who meets your needs, you need to watch out above all for conflicts of interest
RUSSEL METALS $21.58 (Toronto symbol RUS; TSINetwork Rating: Speculative) (905-819-7777; www.russelmetals.com; Shares outstanding: 61.7 million; Market cap: $1.3 billion; Dividend yield: 7.0%) is one of North America’s largest metal distributors, serving 39,000 clients at 53 locations in Canada and 12 in the U.S.

In the three months ended March 31, 2015, Russel’s revenue fell 2.2%, to $903.9 million from $924.0 million a year earlier. The company’s metal-services business saw its sales rise slightly, but the energyproducts division, which supplies pipes for oil and gas drillers, reported a 14% sales decline.

Earnings fell 36.2%, to $18.5 million, or $0.30 a share, from $29.0 million, or $0.47. Russel’s earnings fell faster than revenue because steel prices declined in the latest quarter. That cuts the company’s profit margins and causes it to suffer losses on its inventory.

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IAMGOLD $1.65 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464-9999; www.iamgold.com; Shares outstanding: 391.3 million; Market cap: $688.8 million; No dividends paid) believes Burkina Faso’s upcoming parliamentary vote on an updated mining code will have no effect on its Essakane mine’s profits.

Burkina Faso, a landlocked nation in West Africa, is that continent’s fourth-largest gold producer; the precious metal accounts for about 20% of its gross domestic product.

The new code is expected to abolish a 10% tax break on miners’ profits. However, Burkina Faso will honour clauses in existing deals. As well, the new code should also end uncertainty surrounding the current 12-yearold mining regulations.

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AMERIGO RESOURCES $0.27 (Toronto symbol ARG; TSINetwork Rating: Speculative) (604-681-2802; www.amerigoresources.com; Shares outstanding: 173.6 million; Market cap: $48.6 million; No dividends paid) processes copper and molybdenum from waste rock at Chile’s El Teniente, the world’s largest underground copper mine. The rock comes from the mine’s current production and tailings from the nearby Colihues deposit. This contract runs at least through 2037.

Amerigo gets 94% of its revenue by processing copper. The remaining 6% comes from molybdenum.

In the three months ended March 31, 2015, Amerigo’s copper production fell 12.7%, to 8.9 million pounds from 10.2 million a year earlier. Molybdenum output declined 21.7%, to 97,883 pounds from 125,016.

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SHERRITT INTERNATIONAL $1.62 (Toronto symbol S; TSINetwork Rating: Speculative) (1-800-704- 6698; www.sherritt.com; Shares outstanding: 293.6 million; Market cap: $472.6 million; Dividend yield: 2.5%) sold all of its coal interests for $793 million in cash in April 2014.

The company is now focused on nickel production, with operations in Cuba and Canada. As well, it has a 40% interest in the Ambatovy nickel mine on the island nation of Madagascar, off Africa’s east coast. Sherritt also produces oil and gas in Cuba, Spain and Pakistan and manages 506 megawatts of power generation capacity in Cuba.

In the three months ended March 31, 2015, the company’s revenue fell 31.4%, to $82.9 million from $120.9 million a year earlier, mostly due to lower oil and gas prices. Cash flow per share declined 32.0%, to $0.17 from $0.25.

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AMAZON.COM $488.27 (Nasdaq symbol AMZN; TSINetwork Rating: Extra Risk)(206-266-1000; www.amazon.com; Shares outstanding: 465.7 million; Market cap: $227.3 billion; No dividends paid) continues to excel in a range of businesses; its shares are now at all-time highs.

The company is a major online retailer that’s growing quickly in new areas. For example, Amazon Web Services offers cloud services through 11 data centres worldwide. It accounts for just 7% of Amazon’s sales, but that’s growing at over 50% a year. However, when Amazon enters a new line of business, it’s happy to make little profit, or even lose money.

This is an appropriate growth strategy. Eventually, competitors will catch up with its technology and business practices. In the meantime, it focuses on building a large and loyal clientele.

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Our recommendation on a Canadian oil stock that has promising oil sands projects, but as yet no guarantee of success.
Thanks to the essential service it provides for pipelines, we rate this Canadian growth stock highly even with low oil prices.
A Canadian ETF with U.S. stocks promotes low volatility through beta ratings, but we recommend cost-effective ETFs matching a broad index.
Our view on a Canadian solar stock that has new power plants and long-term contracts but remains dependent on government subsidies.