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
WYNDHAM WORLDWIDE $76.55 (New York symbol WYN; TSINetwork Rating: Extra Risk) (973- 753-6000; www.wyndhamworldwide.com; Shares outstanding: 127.3 million; Market cap: $9.8 billion; Dividend yield: 1.8%) is one of the world’s largest hospitality companies, with 7,500 franchised hotels worldwide.

Wyndham also manages vacation resorts, rental properties, luxury clubs and time-shares. The company now has 107,000 vacation-rental properties in 100 countries.

In the three months ended June 30, 2014, the company’s revenue rose 7.2%, to $1.34 billion from $1.25 billion a year earlier. Wyndham gets most of its revenue from vacation rather than business travel, and vacation bookings rose in the latest quarter. That helped push up the company’s occupancy rate by 2.8%.

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ZARGON OIL & GAS $9.03 (Toronto symbol ZAR; TSINetwork Rating: Speculative) (403- 264-9992; www.zargon.ca; Shares outstanding: 30.1 million; Market cap: $270.9 million; Dividend yield: 8.0%) produces natural gas and oil in Alberta, Manitoba, Saskatchewan and North Dakota.

In the quarter ended March 31, 2014, the company produced 6,662 barrels of oil equivalent a day, down 12.9% from 7,648 a year earlier. That’s mainly because the company sold some less important properties.

The lower output was more than offset by higher oil and gas prices in the latest quarter, increasing Zargon’s cash flow per share by 10.9%, to $0.51 from $0.46.

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CIMAREX ENERGY $148.50 (New York symbol XEC; TSINetwork Rating: Extra Risk) (303-295-3995; www.cimarex.com; Shares outstanding: 87.0 million; Market cap: $12.5 billion; Dividend yield: 0.4%) produces and explores for natural gas and oil. Gas makes up 48% of its output.

Cimarex’s properties are in the Mid-Continent region of the U.S., which includes Oklahoma, Kansas and Texas (50% of production); the Permian Basin of western Texas and southeastern New Mexico (47%); and the Texas Gulf Coast (3%).

In the three months ended March 31, 2014, Cimarex’s production averaged 740.4 million cubic feet of natural gas equivalent per day (including oil). That’s up 12.0% from 661.1 million cubic feet a year earlier.

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CARFINCO FINANCIAL GROUP $9.00 (Toronto symbol CFN; TSINetwork Rating: Speculative) (1-888-486-4356; www.carfinco.com; Shares outstanding: 26.5 million; Market cap: $238.8 million; Dividend yield: 5.3%) provides car loans to consumers who can’t meet the criteria of banks and other traditional lenders.

The company reports that its Canadian operations provided loans at a record pace in the quarter ended June 30, 2014. New loans rose 6.6% from a year ago, to $45.4 million from $42.6 million.

In addition, Carfinco’s U.S. division, Persian Acceptance, achieved new loans of $7.9 million U.S., its highest quarterly total since Carfinco acquired it in September 2013.

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STANTEC INC. $69.35 (Toronto symbol STN; TSINetwork Rating: Extra Risk) (780-917-7288; www.stantec.com; Shares outstanding: 46.7 million; Market cap: $3.2 billion; Dividend yield: 1.1%) sells a range of consulting, project-delivery, design and technology services. Its clients operate in a variety of industries, including oil and gas, transportation and construction.

In the quarter ended March 31, 2014, Stantec’s revenue rose 12.7%, to $481.3 million from $426.9 million a year earlier. Acquisitions were one reason for the gain. Stantec is also working on many new projects, including major pipelines and the huge Westside Subway Transit Corridor in southern California.

Earnings gained 17.9%, to $33.5 million, or $0.72 a share, from $28.4 million, or $0.62.

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DOREL INDUSTRIES $37.90 (Toronto symbol DII.B; TSINetwork Rating: Extra Risk) (514-731-0000; www.dorel.com; Shares outstanding: 32.3 million; Market cap: $1.3 billion; Dividend yield: 3.3%) makes a range of items, including ready-to-assemble home and office furniture; juvenile products, such as car seats, strollers, high chairs, toddler beds and cribs; and recreational goods, mainly bicycles.

In the three months ended March 31, 2014, Dorel’s sales rose 9.0%, to $647.7 million from $594.2 million a year earlier (all figures except share price and market cap in U.S. dollars). Sales rose 18.1% at the recreational segment and 2.0% at the home-furnishing division. Juvenile products sales gained 5.5%.

Earnings per share rose 11.4%, to $0.78 from $0.70. Sales of its high-profit Cannondale and Pacific Cycle premium bikes rebounded with an early spring in Europe. As well, Dorel’s 70% stake in Caloi, which it acquired last year, is now adding to its profits.

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MART RESOURCES $1.38 (Toronto symbol MMT; TSINetwork Rating: Speculative) (403-270-1841; www.martresources.com; Shares outstanding: 356.6 million; Market cap: $488.5 million; Dividend yield: 4.4%) has cut its quarterly dividend to $0.015 from $0.05. The stock now yields 4.4%, based on the current rate.

The company began paying dividends (at the $0.05-a-share rate) in September 2012. At the time, it said it would keep evaluating its payout in relation to its cash flow, liquidity, capital expenditures and other factors.

Mart now says it is reducing the dividend, at least for the time being, to conserve cash. Its decision is based on the ongoing drilling program at its Umusadege field in Nigeria and uncertainty about the first oil shipments through its new Umugini pipeline.

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HECLA MINING COMPANY $3.22 (New York symbol HL; TSINetwork Rating: Extra Risk) (208-769- 4100; www.hecla-mining.com; Shares outstanding: 343.1 million; Market cap: $1.1 billion) explores for, mines and processes silver and gold in the U.S. and Mexico. Most of its silver output comes from its Greens Creek mine in Alaska and its Lucky Friday project in Idaho. The company’s Casa Berardi mine in Quebec, which it bought for $796 million in June 2013, supplies its gold production.

In the three months ended March 31, 2014, Hecla produced 2.5 million ounces of silver, up 31.1% from 1.9 million ounces a year earlier. Gold output jumped to 46,268 ounces from 13,689, mostly due to Casa Berardi. Cash flow per share climbed to $0.07 from $0.04.

The company expects its two silver mines to produce 9.5 million to 10 million ounces in 2014, while Greens Creek will add 55,000 ounces of gold. Casa Berardi is on target to produce 125,000 ounces of gold this year.

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SHERRITT INTERNATIONAL $4.45 (Toronto symbol S; TSINetwork Rating: Speculative) (1-800-704- 6698; www.sherritt.com; Shares outstanding: 297.3 million; Market cap: $1.3 billion; Dividend yield: 0.9%) recently sold off all of its coal interests for $793 million in cash.

The company is now focused on nickel production, with operations in Cuba and Canada. As well, it has started up its 40%-owned 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, 2014, Sherritt’s revenue rose 13.0%, to $120.9 million from $107.0 million a year earlier. Cash flow per share was unchanged at $0.10.

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