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
CANADIAN UTILITIES LTD. (Toronto symbols CU [class A non-voting] $41 and CU.X [class B voting] $41; Income Portfolio, Utilities sector; Shares outstanding: 261.0 million; Market cap: $10.7 billion; Price-to-sales ratio: 3.2; Dividend yield: 2.6%; TSINetwork Rating: Above Average; www. canadianutilities.com) distributes electricity and natural gas in Alberta and Australia. It also operates 18 power plants in Canada, Australia and the U.K. ATCO Ltd. (see right) owns 53.1% of the company.

Canadian Utilities continues to invest in projects that will make Alberta’s electricity grid more reliable. For example, it recently spent $650 million to build 355 kilometres of new transmission lines and substations in the province’s southeast.

Thanks to these new assets, Canadian Utilities earned $587 million in 2013, up 6.1% from $553 million in 2012. Earnings per share rose 3.5%, to $2.09 from $2.02, on more shares outstanding. Without unusual items, mainly deferred payments from or refunds paid to customers, earnings would have risen 11.1%. Revenue gained 11.3%, to $3.4 billion from $3.0 billion.
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strong>CAE INC. $15 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 263.2 million; Market cap: $3.9 billion; Price-to-sales ratio: 1.8; Dividend yield: 1.6%; TSINetwork Rating: Average; www.cae.com) recently sold five flight simulators to Southwest Airlines, Lufthansa and other customers.

In all, these orders are worth $75 million. That’s equal to 3% of CAE’s annual revenue of $2.2 billion.

Including these deals, CAE has sold 48 simulators in its 2014 fiscal year, which ended March 31, 2014. That’s up 37.1% from the 35 it sold in 2013. It also beats the company’s previous all-time high of 38 simulator sales in fiscal 1998.
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RIOCAN REAL ESTATE INVESTMENT TRUST $27

(Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 303.2 million; Market cap: $8.2 billion; Price-to-sales ratio: 5.8; Dividend yield: 5.2%; TSINetwork Rating: Average; www.riocan.com) started up in 1993 and is now Canada’s largest REIT. In Canada, it owns all or part of 293 shopping centres, including 16 under development. These holdings account for 85% of its rental revenue. The remaining 15% comes from 47 malls in the U.S. In the wake of the recession, RioCan took advantage of lower property values and interest rates to expand its portfolio. As a result, its revenue jumped 52.0%, from $758 million in 2009 to $1.15 billion in 2013....
TRANSCANADA CORP. $55 (Toronto symbol TRP; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 708.9 million; Market cap: $39.0 billion; Price-to-sales ratio: 4.7; Dividend yield: 3.8%; TSINetwork Rating: Above Average; www.transcanada.com) has decided not to build an oil-export terminal at Cacouna, Quebec, due to concerns that it could endanger beluga whales in the St. Lawrence River.

This terminal was one of two (the other is near Saint John, New Brunswick) that are part of TransCanada’s proposed Energy East pipeline project, which would pump crude oil from Alberta to refineries in Eastern Canada.

TransCanada is now looking for an alternative site. That will delay Energy East for at least two years, to 2020, and add to its $12-billion cost. However, cancelling the Cacouna terminal makes it more likely that regulators will approve the project.

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IGM FINANCIAL INC. $45 (Toronto symbol IGM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 251.4 million; Market cap: $11.3 billion; Price-to-sales ratio: 4.8; Dividend yield: 5.0%; TSINetwork Rating: Above Average; www.igmfinancial.com) had $148.4 billion worth of assets under management as of March 31, 2015, up 8.1% from $137.3 billion a year earlier....
IMPERIAL OIL $51.60 (Toronto symbol IMO; Shares outstanding: 847.6 million; Market cap: $44.0 billion; TSINetwork Rating: Average; Div. yield: 1.0%; www.imperialoil.ca) is selling some of its conventional oil and natural gas properties in Alberta and B.C. to Whitecap Resources. These assets produce 15,000 barrels a day, which is equal to 5.1% of the 295,000 barrels a day that Imperial produced in 2013.

The company will receive $855 million when the sale closes in May 2014. That will help it pay for its plan to spend $5.5 billion on its main properties this year, including expanding its Cold Lake and Kearl oil sands developments. These investments should increase Imperial’s daily output by 150,000 barrels in 2015.

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PENN WEST $9.35 (Toronto symbol PWT; Shares outstanding: 490.7 million; Market cap: $4.5 billion; TSINetwork Rating: Average; Dividend yield: 6.0%; www.pennwest.com) is one of Canada’s largest oil and gas producers.

Penn West continues to shore up its finances and take steps to boost its value since appointing Rick George as chairman and Allan Markin as vicechairman. These moves include cutting staff, selling assets and lowering its dividend.

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CRESCENT POINT ENERGY CORP. $40.44 (Toronto symbol CPG; Shares outstanding: 395.7 million; Market cap: $16.1 billion; TSINetwork Rating: Extra Risk; Dividend yield: 6.8%; www.crescentpointenergy.com) produces oil and natural gas in Western Canada. Its output is weighted 91% toward oil and 9% to gas.

The company continues to focus on its Bakken light oil development in southeastern Saskatchewan.

In the three months ended December 31, 2013, Crescent Point’s cash flow rose 23.9%, to $533.3 million from $430.4 million a year earlier.
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CANADIAN REIT $44.60 (Toronto symbol REF.UN; Units outstanding: 69.0 million; Market cap: $3.1 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.9%; www.creit.ca) owns 198 properties, including retail, industrial and office buildings, across Canada and in Chicago. These holdings contain over 24.0 million square feet of leasable area. The trust’s occupancy rate is 95.5%.

In the three months ended December 31, 2013, Canadian REIT’s revenue rose 8.6%, to $106.7 million from $98.2 million a year earlier. Cash flow per unit gained 7.5%, to $0.72 from $0.67.

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