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
IAMGOLD $3.55 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464-9999; www.iamgold.com; Shares outstanding: 376.6 million; Market cap: $1.4 billion; No dividends paid) is suspending its dividend payments to conserve cash while it waits for gold prices to rebound. The move follows similar cuts by other gold miners.

Gold has dropped over 30%, from its high near $1,800 U.S. an ounce in September 2012 to $1,232 today.

IAMGold is still a buy for exposure to a rebound in gold prices....
CHEMTRADE LOGISTICS INCOME FUND $18.94 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics.com; Units outstanding: 41.7 million; Market cap: $777.2 million; Dividend yield: 6.3%) has confirmed that it has agreed to buy specialty chemicals maker General Chemical Corp. for $860 million.

This is a huge acquisition for Chemtrade: it will more than double its $777.2-million market cap. A major purchase like this can always backfire, but it will likely be a good fit, offering Chemtrade both growth prospects and diversification.

As well, Chemtrade estimates that General will add 17% to its cash flow per unit. That will let the fund maintain its dividend, which gives its units a high 6.3% yield.
...
AMAZON.COM $395.96 (Nasdaq symbol AMZN; TSINetwork Rating: Extra Risk) (206-266-1000; www.amazon.com; Shares outstanding: 457.7 million; Market cap: $177.4 billion; No dividends paid) has expanded its AmazonFresh same-day grocery delivery service to San Francisco. The move follows the launch of the service in Los Angeles in June 2013. AmazonFresh has also been available in the company’s hometown of Seattle for some time.

AmazonFresh promises same-day or early morning delivery of over 500,000 items, including groceries and food from specialty shops. Delivery is free on all orders over $35 if the customer pays a yearly $299 subscription fee. The fee also includes the benefits of Amazon’s Prime service, such as free two-day shipping on most of the other products sold on Amazon.com.

AmazonFresh may help the company achieve its goal of same-day delivery of all its products. In addition to groceries, AmazonFresh trucks will deliver a range of toys, electronics and household goods. Eventually, these trucks could let the company ship to customers directly and do away with the services of UPS or FedEx in many markets. The trucks could also let Amazon pick up returns from customers, again cutting out the courier companies and speeding up service.
...
MAJOR DRILLING $7.02 (Toronto symbol MDI; TSINetwork Rating: Speculative) (1-866- 264-3986; www.majordrilling.com; Shares outstanding: 79.2 million; Market cap: $557.3 million; Dividend yield: 2.9%) is a large contract-drilling firm that mainly serves the mining industry.

In the three months ended October 31, 2013, Major’s revenue fell 53.8%, to $92.3 million from $199.6 million a year earlier. Earnings also declined sharply, to a loss of $19.1 million, or $0.24 a share, from a profit of $22.3 million, or $0.28.

The latest earnings included $18.3 million of one-time charges, including a $12.1- million writedown of the company’s Chilean operations. Major has cut its staff by 45%, or 2,300 workers, in the past year.
...
GOODYEAR TIRE & RUBBER CO. $22.59 (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (330-796-2122; www.goodyear.com; Shares outstanding: 246.9 million; Market cap: $5.6 billion; Dividend yield: 0.9%) is the world’s largest tire maker, with 52 plants in 22 countries.

In the quarter ended September 30, 2013, the weak global economy lowered Goodyear’s sales by 5.0%, to $5.0 billion from $5.3 billion a year earlier.

North American sales fell 9.1%, to $2.2 billion from $2.4 billion. As well, sales declined by 9.2% in Asia. That offset a slight increase in Europe, the Middle East and Africa, and a 1.3% rise in Latin America. Earnings per share climbed sharply, to $0.68 from $0.45. That was higher than the consensus estimate of $0.67. The higher profits came from the company’s North American operations, which sold more replacement tires (they’re more profitable than new car tires) and successfully cut its costs.
...
ATLANTIC TELE-NETWORK $54.99 (Nasdaq symbol ATNI; TSINetwork Rating: Speculative) (340- 777-8000; www.atni.com; Shares outstanding: 15.8 million; Market cap: $867.3 million; Yield: 2.0%) has closed the sale of its Alltel wireless business to AT&T (symbol T on New York). Atlantic now holds cash of $594.3 million, or $37.61 a share. It has also paid off all of its debt.

Atlantic bought Alltel from Verizon Wireless for just $223 million in April 2010.

In the three months ended September 30, 2013, Atlantic’s revenue rose 8.2%, to $79.4 million from $73.2 million a year earlier. Excluding the gain on the Alltel sale, earnings fell sharply, to $1.6 million, or $0.10 a share, from $7.4 million, or $0.47.
...
CHIPOTLE MEXICAN GRILL $516.89 (New York symbol CMG; TSINetwork Rating: Speculative) (303-595-4000; www.chipotle.com; Shares outstanding: 30.9 million; Market cap: $15.9 billion; No dividends paid) is launching its new catering service across the U.S. The move follows successful test marketing in certain markets, including Colorado.

Chipotle’s catering includes four different meal options to feed between six and 200 people. The meals offer its trademark highquality food, including naturally raised meat.

Customers will pick up the catering orders themselves, which means the company won’t have to hire delivery personnel.
...
TIM HORTONS $62.68 (Toronto symbol THI; TSINetwork Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 147.1 million; Market cap: $9.1 billion; Dividend yield: 1.7%) operates 3,500 coffeeand- donut shops in Canada, 817 in the U.S. and 33 in the Persian Gulf.

In the three months ended September 30, 2013, Tim Hortons’ sales rose 2.9%, to $825.4 million from $802.0 million a year earlier. Same-store sales gained 1.7% at its Canadian outlets and 3.0% in the U.S. Earnings per share rose 6.9%, to $0.77 from $0.72.

The company continues to benefit from recently introduced menu items, such as panini sandwiches. It also raised its prices to cover higher ingredient costs. At the same time, it’s working on simplifying its menu displays and speeding up service, both in-store and at the drive-through.
...
DOMINO’S PIZZA $69.96 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3030; www.dominos.com; Shares outstanding: 55.7 million; Market cap: $3.9 billion; Dividend yield: 1.1%) is the world’s largest chain of pizza stores that offer takeout and delivery. It operates 10,500 outlets in the U.S. and over 70 other countries. Franchisees run most of these stores.

The company’s earnings per share rose 18.6% in the quarter ended September 8, 2013, to $0.51 from $0.43 a year earlier. The latest figure fell just short of the consensus estimate of $0.52. Sales gained 6.9%, to $404.1 million from $378.1 million. That beat the consensus estimate of $403.0 million. Same-store sales rose 5.0% internationally and 5.4% in the U.S.

Domino’s continues to boost its sales by aggressively promoting its new pizza recipes. It’s also profiting by moving into ordering online and through software applications, or apps, on smartphones. In addition, it still has lots of growth potential overseas.
...