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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When we get questions about investing in stocks through split-share, our advice is, avoid the risk and invest in good stocks individually
hot stocks
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 advice on specific investment topics. Each Investor Toolkit update gives you a fundamental piece of investing strategy, and shows you how you can put it into practice right away. Today’s tip: “Selling half of hot stocks that surge helps you guard your profits. But apply this rule only to more aggressive stocks, and not to the well-established stocks that may surprise you by going a lot higher in the long run.” As you probably know, our Successful Investor business model has two parts. We publish investment advice through The Successful Investor Inc., and we manage investor portfolios through Successful Investor Wealth Management Inc. (These two companies are affiliated by common ownership; I own both but set them up as separate companies for regulatory purposes.)...
MCCOY GLOBAL $6.48 (Toronto symbol MCB; TSINetwork Rating: Speculative) (780-453-8451; www.mccoyglobal.com; Shares outstanding: 27.6 million; Market cap: $175.6 million; Dividend yield: 3.1%) is the new name of McCoy Corp.

The company changed its name after the recent sale of its Mobile Solutions heavy-duty truck-trailer unit to focus on its faster-growing and more profitable Energy Products and Services segment. This business sells hydraulic gear, including power tongs, for drilling rigs worldwide. (Power tongs are large wrench-like tools that tighten and loosen the pipe in the drill hole.)

New global focus adds appeal

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WAJAX CORP. $35.12 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax.ca; Shares outstanding:16.8 million; Market cap: $586.4 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 March 31, 2014, Wajax’s revenue fell 1.5%, to $331.4 million from $336.3 million a year earlier. The decline mostly came from weakness in oil and gas and mining markets.

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CALIAN TECHNOLOGIES $19.92 (Toronto symbol CTY; TSINetwork Rating: Speculative) (613-599-8600; www.calian.comtarget=”_blank”; Shares outstanding: 7.3 million; Market cap: $147.1 million; Yield: 5.6%) has acquired Ottawa-based DWP Solutions for an undisclosed amount.

DWP has been in business for 18 years and helps government and defence customers secure their computer networks. The company’s annual revenue is around $6 million. To put that in context, Calian reported $51.2 million of revenue in the latest quarter.

The purchase is small for Calian, but it will be a good fit with the company’s Business and Technology Services division, which supplies engineers, health care workers, information technology professionals and other personnel on a contract basis.

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SASOL LTD. (ADR) $60.80 (New York symbol SSL; TSINetwork Rating: Extra Risk) (082-883-9697; www.sasol.comtarget=”_blank”; ADRs outstanding: 650.5 million; Market cap: $40.5 billion; Dividend yield: 2.5%) has won its appeal to the European General Court to have a fine for its involvement in the European paraffin wax cartel reduced. The European Commission imposed the fine, for 318.2 million euros ($430.5 million U.S.), on Sasol in October 2008.

The company states that it was unaware of any price-fixing activities before the European Commission commenced its investigation into the European paraffin wax industry in April 2005.

It paid the fine in January 2009 but viewed it as excessive. The court has now cut the fine by 168.22 million euros, to 149.98 million euros.

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AIMIA INC. $18.95 (Toronto symbol AIM; TSINetwork Rating: Extra Risk) (514-205-7315; www.aimia.com; Shares outstanding: 173.9 million; Market cap: $3.3 billion; Dividend yield: 3.8%) owns and operates Aeroplan, Canada’s largest loyalty program, with over 4.8 million members who collect Aeroplan miles from participating companies. Members can exchange their miles for flights, car rentals, hotel rooms and merchandise.

The company’s members can now earn and redeem points for travel on Air India, the Indian government’s flagship carrier. That brings Aeroplan’s total number of airline partners to 32.

The agreement will give Aeroplan members more choice on routes connecting North America, Europe, Asia and Australia via India.

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AMAZON.COM $358.14 (Nasdaq symbol AMZN; TSINetwork Rating: Extra Risk) (206-266-1000; www.amazon.com; Shares outstanding: 460.2 million; Market cap: $166.1 billion; No dividends paid) has enticed Babik Parviz, a key director at Google’s secretive Google X labs, to join the company.

Parviz pioneered the development of Google Glass, a wearable computer that displays information on a small display attached to a pair of glasses. More recently, Parviz led the Google team working on contact lenses with embedded electronics.

Amazon recently introduced its long-awaited Amazon Fire smartphone, which features a screen that can display seemingly 3-D images without the need for special glasses. This new technology—called Dynamic Perspective—uses retina-tracking technology embedded in four front-facing infrared cameras to make some images appear to be 3-D, similar to a hologram.

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WESTJET $26.85 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493- 7853; www.westjet.com; Shares outstanding: 127.8 million; Market cap: $3.4 billion; Dividend yield: 1.8%) now plans to operate its own wide-body, twoaisle aircraft, starting in 2015.

The planes will offer greater range than its current fleet of Boeing 737s and let it compete with Air Canada on international routes.

WestJet aims to start with four wide-body planes, with the first flights going between Alberta and Hawaii during the winter season, beginning in late 2015. Right now, it is using two Boeing 757-200s operated by Thomas Cook for its Alberta-to-Hawaii winter service.

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DOMINO’S PIZZA $75.43
(New York symbol DPZ; TSINetwork Rating: Average) (734-930-3030; www.dominos.com; Shares outstanding: 55.6 million; Market cap: $4.2 billion; Dividend yield: 1.3%) is the world’s largest chain of pizza stores that offer takeout and delivery. It operates 11,000 outlets in the U.S. and over 70 other countries. Franchisees run most of these stores. In the quarter ended June 15, 2014, the company’s earnings per share rose 17.5%, to $0.67 from $0.57 a year earlier. That beat the consensus estimate of $0.65. Sales gained 8.8%, to $450.5 million from $414.0 million also exceeding the consensus estimate of $441.3 million. Same-store sales rose 7.7% internationally and 5.4% in the U.S.

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