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
This REIT banks on strong development in Canada’s north
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....
Holding company ATCO has potential to unlock hidden value
Holding companies give you an easy way to buy a variety of businesses at a discount. As well, their structure makes it possible for them to unlock hidden value by selling undervalued subsidiaries....
Growing Money


Every Wednesday, we publish our “Investor Toolkit” series on TSI Network....
Selling flavors and fragrances to big consumer firms has this stock rising
INTERNATIONAL FLAVORS & FRAGRANCES INC. (New York symbol IFF; www.iff.com) makes over 36,000 unique compounds that improve the taste of foods and the smell of a wide variety of consumer products. Major clients include Procter & Gamble, Nestle, Kraft, Unilever and General Mills....
Two Canadian juniors bank on rising gold and copper production
AURICO GOLD (Toronto symbol AUQ; www.auricogold.com) operates the El Chanate gold mine in Mexico, which produced 71,864 ounces in 2013....
ALARMFORCE INDUSTRIES $10.75 (Toronto symbol AF; TSINetwork Rating: Speculative) (1-800- 267-2001; www.alarmforce.com; Shares outstanding: 12.0 million; Market cap: $128.6 million; Dividend yield: 0.9%) sells twoway voice-alarm systems and monitoring services in Canada and increasingly in the U.S.

In the quarter ended October 31, 2013, the company’s sales rose 10.8%, to $12.6 million from $11.4 million a year earlier. It earned $2.6 million, or $0.21 a share, up sharply from $708,539, or $0.06.

AlarmForce’s revenue rose along with its subscriber base. Earnings were sharply higher because it spent a lot less on marketing than a year ago, in the wake of the launch of its VideoRelay system. This service lets subscribers watch their homes through computers and smartphones. AlarmForce now has 6,600 VideoRelay subscribers, with 3,800 in Canada and 2,800 in the U.S.
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FIRSTSERVICE CORP. $49.52 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 34.3 million; Market cap: $1.8 billion; Dividend yield: 0.9%) serves the following areas of the real estate market: commercial real estate, residential property management and property improvement. FirstService has more than 24,000 employees worldwide.

In the quarter ended December 31, 2013, the company’s revenue rose 14.5%, to $691.7 million from $604.1 million a year earlier (all figures except share prices in U.S. dollars). Excluding one-time items, earnings per share rose 26.0%, to $0.97 from $0.77.

Revenue rose at all three of FirstService’s divisions: Colliers International (commercial real estate), up 21%; FirstService Residential (residential property management), up 9%; and FirstService Brands (property services), up 8%.
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WESTJET $26.11 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493- 7853; www.westjet.com; Shares outstanding: 129.4 million; Market cap: $3.3 billion; Dividend yield: 1.8%) reports that its earnings rose 11.3% in the three months ended December 31, 2013, to $67.8 million from $60.9 million a year earlier. Earnings per share gained 13.0%, to $0.52 from $0.46, on fewer shares outstanding.

Revenue increased 7.6%, to $926.4 million from $860.6 million.

Demand for the company’s flights remains high, and it continues to enter into new partnerships with other airlines.
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CIMAREX ENERGY $111.84 (New York symbol XEC; TSINetwork Rating: Extra Risk) (303-295-3995; www.cimarex.com; Shares outstanding: 86.8 million; Market cap: $9.7 billion; Dividend yield: 0.5%) plans to spend $1.8 billion on exploration and development in 2014, up 12.5% from $1.6 billion in 2013.

The company expects to spend 78% of that on projects in the Delaware Basin, which is part of the larger Permian Basin area of western Texas and southeastern New Mexico.

Cimarex operated 12 horizontal drilling rigs in the Permian Basin last year; it raised that to 16 at the end of January 2014.
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