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
PHILIPS ELECTRONICS N.V. ADRs $35 (New York symbol PHG; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 913.3 million; Market cap: $32.0 billion; Priceto- sales ratio: 1.0; Dividend yield: 2.8%; TSINetwork Rating: Average; www.philips.com) gets 41% of its revenue by making health care products, such as X-ray and magnetic resonance imaging (MRI) scanners.

The company also makes lighting (36% of revenue) and consumer electronics, such as appliances and electric shavers (20%). Licensing revenue and other services supply the remaining 3%.

Philips continues to benefit from a major restructuring plan that includes efficiency improvements and cutting 4% of its workforce. The company has also sold its less profitable video and audio products business, which makes TV sets and CD players.
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CANON INC. ADRs $31 (New York symbol CAJ; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.1 billion; Market cap: $34.1 billion; Price-to-sales ratio: 1.0; Dividend yield: 4.5%; TSINetwork Rating: Above Average; www.canon.com) gets 52% of its revenue by making office equipment, mainly printers and copiers.

It also makes consumer products, such as cameras and inkjet printers (38% of revenue), and industrial components, including chips and other parts for TV sets, medical gear and mobile devices (10%).

Demand for printers and other business products is slowly improving with the overall economy. The low Japanese yen also makes Canon’s products cheaper in other countries.
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DIAGEO PLC ADRs $125 (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs outstanding: 627.8 million; Market cap: $78.5 billion; Price-to-sales ratio: 4.2; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.diageo.com) is the world’s largest maker of spirits. Its major brands include Guinness stout, Smirnoff vodka and Captain Morgan rum.

In the first six months of its 2014 fiscal year, which ended December 31, 2013, Diageo’s sales fell 0.7%, to 5.9 billion British pounds from 6.0 billion a year earlier (1 pound = $1.86 Canadian).

Gains in Latin America (up 8%), North America (up 5%) and Africa (up 2%) offset weakness in Asia (down 6%) and Western Europe (down 1%).
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YUM! BRANDS INC. $73 (New York symbol YUM; Aggressive Growth Portfolio; Consumer sector; Shares outstanding: 442.9 million; Market cap: $32.3 billion; Price-to-sales ratio: 2.6; Dividend yield: 2.0%; TSINetwork Rating: Above Average; www.yum .com) will soon start selling breakfast foods and coffee through 5,500 of its Taco Bell outlets in the U.S.

The new breakfast menu features the Waffle Taco, a warm waffle wrapped around either bacon or sausage, with scrambled eggs, cheese and maple syrup. The A.M. Crunchwrap sandwich holds sausage, eggs and cheese inside a soft tortilla shell.

These foods are sure to draw a lot of criticism from health advocates. But that may be part of Yum’s plan to attract media attention and spur sales.
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Canadian junior aims for big diamond strike in Northwest Territories
Black Coffee, Pen and Newspaper
Jieyu Lai
Pat McKeough responds to many requests from members of his Inner Circle for specific investing advice as well as questions on investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week, we offer you one of the highlights from these Q&A sessions. While we reserve our buy-hold-sell advice for Inner Circle members, these excerpts provide a great deal of information and analysis on stocks we’ve covered for members of Pat’s Inner Circle....
Two Canadian energy stocks tackle big growth projects
Oil and gas industry. Work of refinery petrochemical plant. Oil reservoir and storage tank of mineral oil. Blue sky above factory
Spade
BELLATRIX EXPLORATION (Toronto symbol BXE; www.bellatrixexploration.com) produces natural gas (70% of output) and oil (30%) in Alberta, B.C. and Saskatchewan....
compass on money
Compass and canadian dollar close up shot
Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific advice on stock market trading and other investment topics that will help you develop a successful approach to investing. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put it into practice right away. Today’s tip: “The stock market climbs a ‘wall of worry’ and well-informed investors can help their stock portfolios climb with it.”...
Two leading Canadian REITs combine to launch joint venture
RIOCAN REAL ESTATE INVESTMENT TRUST (Toronto symbol REI.UN; www.riocan.com) is Canada’s largest real estate investment trust (REIT), with interests in 346 shopping malls containing over 83 million square feet of leasable area. That total includes 51 U.S. malls with over 14 million square feet....
Improved mobile and cloud growth are priorities for new Microsoft CEO
Technology stocks tend to be riskier than our other recommendations in the Manufacturing & Industry sector. That’s mainly because innovations can quickly make today’s products obsolete....