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
Funeral
Muhaciov Artiom
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 advice. Each Investor Toolkit update gives you a fundamental piece of stock market advice, and shows you how you can put it into practice right away. Today’s tip: “The value and quality of the stocks you consider are far more important than what the share price happens to be doing at any given moment.”...
Surveillance
Every Monday we feature “A Stock to Sell” as our daily post. With every stock we recommend as a sell, we give you a full explanation of why we advise against investing in the stock at this time. Avigilon Corp., (symbol AVO on Toronto; www.avigilon.com), designs, makes and sells high-definition surveillance systems. Users can view the images from this equipment on computers, tablets and smartphones....
TEMPUR SEALY $53.95 (New York symbol TPX; TSINetwork Rating: Speculative)(800-878-8889; www.tempursealy.com; Shares outstanding: 60.9 million; Market cap: $3.3 billion; No dividends paid) completed its $1.3- billion purchase of rival Sealy in March 2013. This was a major acquisition for Tempur Sealy (formerly Tempur-Pedic), but it has let the company diversify into traditional spring-coil beds.

The purchase is also helping Tempur Sealy offset rising competition in its current business; the company makes and distributes mattresses and neck pillows made of its Tempur material, which conforms to the body to provide support and alleviate pressure points.

Competitors Simmons Bedding and Serta have both successfully launched memory-foam mattresses that directly compete with Tempur Sealy’s products.

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MCCOY GLOBAL $4.75 (Toronto symbol MCB; TSINetwork Rating: Speculative) (780-453-8451; www.mccoyglobal.com; Shares outstanding: 27.7 million; Market cap: $131.4 million; Dividend yield: 4.2%) is the new name of McCoy Corp.

The change comes after the company sold its Mobile Solutions heavy-duty truck-trailer unit earlier this year. McCoy made the sale to focus on its fastergrowing and more profitable Energy Products and Services segment, which sells hydraulic gear, including power tongs, for drilling rigs. (Power tongs are large wrench-like tools that tighten and loosen the pipe in a drill hole.)

In 2013, McCoy opened its first two Energy Products international sales and service centres. One is in Aberdeen, Scotland, and supports customers in the North Sea area. The other is in Singapore and serves the Asia-Pacific region. McCoy recently opened another centre, in Dubai, to supply the Middle East. It plans to open an additional location in Latin America.

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WAJAX CORP. $35.46 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax.ca; Shares outstanding:16.8 million; Market cap: $595.0 million; Dividend yield: 6.8%) sells and services cranes, forklifts and other heavy equipment. It also provides related parts (such as bearings, motors, hoses and fittings) and power systems (including diesel engines and transmissions).

The company’s customers are in the natural resource, construction, manufacturing and transportation industries.

In the three months ended September 30, 2014, Wajax’s revenue rose 6.2%, to $359.5 million from $338.5 million a year earlier. All of its segments reported higher sales, including mining and forestry.

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TIM HORTONS $92.84 (Toronto symbol THI; TSINetwork Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 132.6 million; Market cap: $12.3 billion; Div. yield: 1.4%) had sales of $909.2 million in the three months ended September 30, 2014, up 10.2% from $825.4 million a year earlier. Earnings per share fell 2.2%, to $0.74 from $0.75.

The company has accepted a friendly takeover offer from Miami-based Burger King Worldwide (New York symbol BKW). If you exclude unusual items, such as $27.3 million in takeover-related costs, Tim Hortons earned $0.95 a share in the quarter, up 25.0% from $0.76 a year earlier.

Under the deal, Tim Hortons’ shareholders can opt to receive $88.50 a share in cash or 3.0879 Burger King shares worth a total of $113.51 (all amounts in Canadian dollars).

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CHEMTRADE LOGISTICS INCOME FUND $21.25 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics- .com; Units outstanding: 62.9 million; Market cap: $1.3 billion; Dividend yield: 5.7%) is one of North America’s largest providers of removal services for resource firms, such as oil refineries and base metal processors, whose operations create sulphur, acid and other by-products. Chemtrade converts these substances into useful chemicals, like sulphuric acid.

The company reported that its revenue rose 56.9% in the quarter ended September 30, 2014, to $324.6 million from $206.9 million a year earlier.

That’s largely due to General Chemical Corp., which Chemtrade bought for $900 million U.S. in January 2014. General makes a range of chemicals, including aluminum sulphate, aluminum chlorohydrate and ferric sulphate (all of which are used in water treatment), as well as ingredients for prescription drugs, nutritional supplements and veterinary products.

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COMPUTER MODELLING GROUP $12.59 (Toronto symbol CMG; TSINetwork Rating: Speculative) (403-531-1300; www.cmgl.ca; Shares outstanding: 78.8 million; Market cap: $990.2 million; Dividend yield: 3.2%) sells software and consulting services that help oil and gas producers use advanced recovery techniques to get more out of their wells.

In the quarter ended September 30, 2014, Computer Modelling’s revenue rose 14.8%, to $19.7 million from $17.2 million a year earlier. Earnings gained 33.3%, to $7.5 million, or $0.09 a share, from $5.6 million or $0.07. The company cut its costs, pushing its earnings higher.

Computer Modelling holds cash of $65.4 million, or $0.83 a share, and has no debt. The stock yields 3.2%.

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DOREL INDUSTRIES $37.53 (Toronto symbol DII.B; TSINetwork Rating: Extra Risk) (514-731-0000; www.dorel.com; Shares outstanding: 32.3 million; Market cap: $1.2 billion; Dividend yield: 3.6%) reported revenue of $673.0 million in the three months ended September 30, 2014. That’s up 10.8% from $607.3 million a year earlier (all figures except share price and market cap in U.S. dollars).

Earnings per share jumped 32.7% in the latest quarter, to $0.73 from $0.55. Sales of its highly profitable Cannondale and Pacific Cycle premium bikes remain strong. As well, Brazilian bike maker Caloi posted its first profit since Dorel’s recent purchase of a 70% stake in the company.

The stock trades at just 10.4 times Dorel’s forecast 2015 earnings of $3.61 a share.

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