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
Stock investment clubs can help new investors find quality stocks and develop their own investing style. But watch out for the drawbacks.
ALGONQUIN POWER & UTILITIES CORP. $7.88 (Toronto symbol AQN; Shares outstanding: 206.9 million; Market cap: $1.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.3%; www.algonquinpower.com) has nearly tripled in size over the past two years through acquisitions.

Algonquin bought four companies in 2012, and seven more in 2013. These moves included a $140.7-million U.S. deal for a natural gas distributor in Georgia with 64,000 clients.

The company’s regulated utility businesses now provide water, electricity and natural gas to over 480,000 customers, up sharply from 120,000 a year ago. In addition, Algonquin’s hydroelectric, thermal energy, solar and wind facilities generate 1,125 megawatts of power, up from 460.

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BANK OF NOVA SCOTIA $66.60 (Toronto symbol BNS; Shares outstanding: 1.2 billion; Market cap: $80.1 billion; TSINetwork Rating: Above Average; Dividend yield: 3.8%, www.scotiabank.com) has formally changed the name of its ING Direct subsidiary to Tangerine (www.tangerine.ca).

The bank bought ING Direct from its Netherlands-based parent, ING Group, in November 2012. This business provides no-fee banking services to 1.9 million clients, mainly over the Internet. The new name will let Bank of Nova Scotia keep using the orange colour associated with the ING Direct brand.

Tangerine will continue to operate separately from the bank’s retail banking operations. However, Bank of Nova Scotia will let Tangerine customers use its ATMs without paying fees.

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ENCANA CORP. $25.39 (Toronto symbol ECA; Shares outstanding: 740.9 million; Market cap: $19.0 billion; TSINetwork Rating: Average; Dividend yield: 1.2%; www.encana.com) has released more details regarding its plan to spin off its Clearwater oil and gas properties in southern Alberta.

The new company, called PrairieSky Royalty, will hold the oil and gas rights to 5.2 million acres. PrairieSky will not drill wells or explore for new reserves. Instead, it will collect royalties from other producers. That should generate steady cash flows for monthly dividends.

Encana plans to complete an initial public offering for PrairieSky in the next two to three months—although it will hang on to a majority stake. In the future, it may hand out that stake as a special dividend to its shareholders.

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ISHARES MSCI BRAZIL INDEX FUND $47.04 (New York Exchange symbol EWZ; buy or sell through brokers) is an ETF that is designed to track the Brazilian stock market.

Its top holdings are Petrobras (oil and gas), 10.3%; Cia Itau Unibanco Holding (banking), 8.7%; Vale do Rio Doce (mining), 8.1%; Cia de Bebidas das Americas (beer and beverages), 7.6%; Banco Brandesco, 6.4%; and BRF SA (food), 3.5%.

The ETF was launched on July 10, 2000. It has an expense ratio of 0.62%.

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ISHARES MSCI CHILE INVESTABLE MARKET INDEX FUND $46.03 (New York Exchange symbol ECH; buy or sell through brokers) is an ETF that aims to track the MSCI Chile Investable Market Index, which consists of stocks that mainly trade on the Santiago Stock Exchange.

The fund’s top holdings are S.A.C.I. Falabella (retail), 9.0%; Enersis SA (electricity), 8.8%; Empresas Copec SA (conglomerate), 8.5%; LATAM Airlines, 6.9%; Empresa Nacional de Electricidad (electricity), 6.7%; Cencosud SA (retailer), 5.2%; Banco Santander Chile (banking), 4.7%; Quimica y Minera de Chile (mining), 4.5%; Banco de Chile, 4.4%; and Empresas CMPC (pulp and paper), 4.0%.

The fund’s industry breakdown is: Utilities, 25.0%; Financials, 17.3%; Materials, 13.7%; Consumer Discretionary, 10.6%; Industrials, 9.9%; Consumer Staples, 9.9%; Energy, 8.5%; Telecommunications, 2.4%; and Information Technology, 2.0%.

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ISHARES MSCI GERMANY FUND $31.68 (New York Exchange symbol EWG; buy or sell through brokers) tracks the stocks in the MSCI Germany Index.

This index aims to replicate 85% of the total market capitalization of the German stock market. The remaining 15% is unavailable for investment, partly due to limitations on foreign ownership.

The ETF’s top holdings are Bayer (diversified chemicals), 8.8%; Siemens (engineering conglomerate), 8.5%; BASF (chemicals), 8.3%; Daimler (autos), 7.1%; Allianz (insurance), 6.2%; SAP (software), 5.8%; Deutsche Telekom, 3.7%; Deutsche Bank, 3.6%; and BMW, 3.3%.

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ISHARES MSCI SOUTH KOREA INDEX FUND $62.55 (New York Exchange symbol EWY; buy or sell through brokers) aims to track the MSCI Korea Index.

The ETF’s top holdings are Samsung Electronics, 22.1%; Hyundai Motor Co., 5.8%; SK Hynix Semiconductor, 3.5%; Naver (Internet content), 3.4%; Hyundai Mobis (auto parts), 3.3%; Posco (steel), 3.1%; Shinhan Financial, 3.0%; Kia Motors, 2.4%; LG Chemical, 2.0%; and KB Financial, 2.0%.

The fund’s industry breakdown is as follows: Information Technology, 32.9%; Consumer Discretionary, 19.1%; Financials, 14.2%; Industrials, 12.8%; Materials, 9.2%; Consumer Staples, 5.3%; Energy, 2.1%; Utilities, 1.8%; Telecommunication Services, 1.0%; and Health Care, 0.7%.

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ISHARES MSCI EMERGING MARKETS INDEX FUND $41.33 (New York symbol EEM; buy or sell through brokers) aims to track the MSCI Emerging Markets Index.

Its geographic breakdown includes China, 17.6%; South Korea, 16.0%; Taiwan, 11.9%; Brazil, 11.3%; South Africa, 7.8%; India, 6.7%; Russia, 4.7%; Mexico, 4.7%; Malaysia, 3.9%; and Indonesia, 2.7%.

The fund’s top holdings are Samsung Electronics (South Korea), 3.9%; Taiwan Semiconductor (computer chips), 2.5%; Tencent Holdings (China: Internet), 1.8%; China Mobile, 1.4%; China Construction Bank, 1.3%; Industrial & Commercial Bank of China, 1.2%; Itau Unibanco Holding (Brazil: banking), 1.1%; and Gazprom (Russia: gas utility), 1.1%.

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ISHARES MSCI JAPAN INDEX FUND $11.08 (New York Exchange symbol EWJ; buy or sell through brokers; us.ishares.com) is an ETF that tries to match the return of the Morgan Stanley Capital International (MSCI) Japan index.

The fund’s top holdings include Toyota, 5.8%; Softbank Corp., 2.8%; Mitsubishi UFJ Financial, 2.7%; Honda Motor, 2.2%; Sumitomo Mitsui Financial, 1.9%; Mizuho Financial Group, 1.7%; Japan Tobacco, 1.4%; Hitachi, 1.4%; Takeda Pharmaceutical, 1.4%; and Canon, 1.4%.

The fund’s industry breakdown includes: Consumer Discretionary, 20.8%; Industrials, 19.6%; Financials, 19.5%; Information Technology, 10.9%; Consumer Staples, 6.6%; Health Care, 6.4%; Telecommunication Services, 5.7%; Materials, 5.6%; Utilities, 2.5%; and Energy, 1.2%.

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