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
A conservative, step-by-step Canadian guide: account choice, W-8BEN, FX cost cuts, first trade, and DRIP, built for steady dividend income.
VISA INC. $246 (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 618.3 million; Market cap: $152.1 billion; Price-to-sales ratio: 12.5; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.visa.com) gets most of its revenue from fees it charges card issuers and merchants for using its network. It bases its fees on payment volume and transactions processed, among other factors. The banks that issue the cards are responsible for evaluating customer creditworthiness and collecting payments, not Visa.

The company continues to profit as more people shop online, and debit cards are quickly replacing cash for smaller transactions.

Meanwhile, the U.S. Supreme Court recently refused to hear an appeal of a class-action lawsuit by retailers seeking to lower the fees credit card companies charge. That cuts Visa’s risk.

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NEWELL RUBBERMAID INC. $37 (New York symbol NWL; Aggressive Growth and Income Portfolios, Consumer sector; Shares outstanding: 271.1 million; Market cap: $10.0 billion; Price-to-sales ratio: 1.8; Dividend yield: 1.8%; TSINetwork Rating: Average; www.newellrubbermaid.com) has gained 23% since we made it our Stock of the Year for 2014.

The company makes plastic storage bins, tools, window blinds, pens and many other household goods.

In the past few years, Newell has aggressively cut its costs, including closing plants. That has freed up cash that it can use to acquire businesses with strong long-term prospects.

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SYMANTEC CORP. $25 (Nasdaq symbol SYMC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 690.2 million; Market cap: $17.3 billion; Price-to-sales ratio: 2.7; Dividend yield: 2.4%; TSINetwork Rating: Average; www.symantec.com) began operating in 1982. It’s now the world’s largest maker of security software.

Symantec is best known for its Norton anti-virus software, which helps protect computers from viruses and online attacks. It mainly sells Norton to consumers, but it also has agreements to pre-install it on new computers.

In addition to virus protection, Symantec has developed a range of other security programs under the Norton name, including software that guards against identity theft.

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Tax Shelters
Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a beginning or experienced investor, these weekly updates are designed to give you specific investment tips and stock market advice. Each Investor Toolkit update gives you a fundamental piece of investment advice, and shows you how you can put it into practice right away.

Today’s tip: “There are three ways you can ensure that you get the maximum profit, and tax benefit, from your tax free savings account.”

The federal government first made the tax free savings account (TFSA) available to investors in January 2009. These accounts let you earn investment income — including interest, dividends and capital gains — tax free. You could contribute $5,000 in 2009 to start your tax free savings account.

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Commodity Investments
Every Monday we feature “A Stock to Sell” as our daily post. With every stock or investment we recommend as a sell, we give you a full explanation of why we advise against investing in it at this time.

Cardiff Energy (symbol CRS on Toronto; www.cardiffenergy.com), is a junior oil and gas exploration firm. It first sold shares to the public and began trading in April 2012.

Cardiff holds interests in 15 producing oil wells, one producing gas well and three shut-in oil wells in the Lincoln County area of central Oklahoma. It also has holdings in other parts of the state, including seven producing oil and gas wells in the Garvin County area and interests in the Buzzard Sand oil property in Osage County.

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ENERFLEX LTD. $15.48 (Toronto symbol EFX; TSINetwork Rating: Extra Risk)(403-387-6377; www.enerflex.com; Shares outstanding: 78.6 million; Market cap: $1.2 billion; Dividend yield: 2.2%) rents and sells equipment and services for natural gas production, including compression and processing plants, refrigeration gear and power generators.

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

In the quarter ended September 30, 2014, Enerflex’s revenue rose 22.6%, to $479.0 million from $390.7 million a year earlier. Earnings per share jumped 37.5%, to $0.33 from $0.24.

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CHIPOTLE MEXICAN GRILL $703.89 (New York symbol CMG; TSINetwork Rating: Speculative) (303-595-4000; www.chipotle.com; Shares outstanding: 31.0 million; Market cap: $21.8 billion; No dividends paid) halted sales of pork items at one-third of its nearly 1,800 U.S. restaurants in mid-January 2015. That’s because it learned that a key supplier had failed to meet Chipotle’s humane pig-housing standards.

The company uses pork in around 7% of the burritos, tacos, bowls and salads it sells.

Chipotle believes most customers will simply substitute pork with other meats on the menu, but some may go elsewhere.

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SYMANTEC CORP. $25.62 (Nasdaq symbol SYMC; TSINetwork Rating: Average)(408-517-8000; www.symantec.com; Shares outstanding: 690.2 million; Market cap: $17.7 billion; Dividend yield: 2.3%) is hiring engineers and licensing certain technology from Narus, a computer-security firm owned by Boeing Co. (symbol BA on New York). Narus has developed algorithms and software that can analyze large amounts of Internet traffic and filter out certain data. Its clients include the U.S. National Security Agency.

Symantec will use Narus’s technology to develop security software for corporations. Demand for these products should be strong, particularly after highprofile cyber attacks on Sony, Home Depot and Target.

Symantec is a buy.

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HECLA MINING COMPANY $3.35 (New York symbol HL; TSINetwork Rating: Extra Risk) (208-769- 4100; www.hecla-mining.com; Shares outstanding: 367.4 million; Market cap: $1.2 billion) explores for, mines and processes silver and gold in the U.S. and Mexico.

In the three months ended December 31, 2014, Hecla produced 3.2 million ounces of silver, up 29.1% from 2.5 million a year earlier. Gold output rose 16.1%, to 54,671 ounces from 47,108.

All of Hecla’s mines have potential for higher output, although it’s cutting back on capital spending for now while it waits for higher gold and silver prices.

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