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
Asia a big growth area for two Canadian insurance giants
Elena Elisseeva
SUN LIFE FINANCIAL (Toronto symbol SLF; www.sunlife.ca) sells savings, retirement, pension and life insurance products to individuals and corporations....
< strong>MCCOY CORP. $6.37 (Toronto symbol MCB; TSINetwork Rating: Speculative) (780-453-8451; www.mccoyglobal.com; Shares outstanding: 26.9 million; Market cap: $171.0 million; Dividend yield: 3.1%) operates through two divisions: Mobile Solutions and Energy Products and Services.
< br /> Energy Products and Services sells hydraulic equipment, including power tongs, for drilling rigs. Power tongs are large wrench-like tools that tighten and loosen the pipe in the drill hole.
< br /> Mobile Solutions builds heavy-duty trailers for U.S. and Canadian clients in the oil and gas, wind energy, infrastructure and construction industries.
...
WAJAX CORP. $35.72 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax.ca; Shares outstanding:16.7 million; Market cap: $601.2 million; Dividend yield: 6.7%) sells and services cranes, forklifts and other heavy equipment. It also provides related parts (such as bearings, motors, hoses and fittings) and power systems (including diesel engines and transmissions).
< br /> The company’s customers are in the resource, construction, manufacturing and transportation industries.
< br /> In the three months ended September 30, 2013, Wajax’s revenue declined 5.0%, to $338.5 million from $356.4 million a year earlier. Earnings fell 28.6%, to $11.5 million, or $0.69 a share, from $16.2 million, or $0.97.
...
CHEMTRADE LOGISTICS INCOME FUND $17.09 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics.com; Units outstanding: 41.7 million; Market cap: $709.7 million; Dividend yield: 7.0%) is in talks to buy specialty chemicals maker General Chemical Corp. from private equity firm American Securities LLC for as much as $1 billion. American Securities took General Chemical private for $673 million in 2009.
< br /> General Chemical makes a wide range of chemicals. In addition to water treatment and pharmaceuticals, its main markets include oil refining, pulp and paper, agriculture and food and beverage.
< br /> This would be a huge acquisition for Chemtrade, more than doubling its $706.4- million market cap. A major purchase like this can always backfire, but it would likely be a good fit, offering Chemtrade both growth prospects and diversification.
...
< strong>TOROMONT INDUSTRIES LTD. $25.47 (Toronto symbol TIH; TSINetwork Rating: Extra Risk) (416-667- 5511; www.toromont.com; Shares outstanding: 76.6 million; Market cap: $2.0 billion; Dividend yield: 2.0%) distributes a wide range of industrial equipment, including machinery made by Caterpillar Inc. It also makes refrigeration systems through its CIMCO division.

In the three months ended September 30, 2013, higher equipment sales and rentals, particularly to mining, construction and agriculture customers, pushed up Toromont’s revenue by 20.0%, to $498.3 million from $415.0 million a year earlier.

Earnings per share rose 32.6%, to $0.57 from $0.43, on the higher sales and improved profit margins.
...
< strong>TIM HORTONS $61.81 (Toronto symbol THI; TSINetwork Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 151.0 million; Market cap: $9.1 billion; Dividend yield: 1.7%) is testing a new dark roast blend of its coffee in London, Ontario, and Columbus, Ohio.
< br /> For the past 49 years, the company has had huge success with its medium-roast coffee. However, many of its competitors now offer a variety. For example, Starbucks recently launched a lighter blend that is similar to Tim Hortons’ regular blend.
< br /> If this test is successful, Tim Hortons could start selling the dark roast in all of its 4,300 stores in 2014.
...
TEMPUR SEALY $47.05 (New York symbol TPX; TSINetwork Rating: Speculative) (800-878-8889; www.tempursealy.com; Shares outstanding: 60.4 million; Market cap: $2.8 billion; No dividends paid) is the new name of Tempur-Pedic after its March 2013 purchase of rival Sealy Corp. for $1.3 billion.
< br /> In the quarter ended September 30, 2013, Tempur Sealy’s revenue rose 1.5%, to $390.1 million from $384.4 million a year earlier. Sealy’s contribution was the main reason for the rise. Excluding one-time items, earnings per share gained 4.3%, to $0.73 from $0.70. That beat the consensus estimate of $0.69.
< br /> The company’s long-term prospects are sound, and the Sealy purchase is a positive. However, the stock now trades at a somewhat high 20.9 times Tempur Sealy’s forecast 2013 earnings of $2.25 a share. In addition, while the Sealy acquisition should pay off, a major acquisition like this can always come with hidden problems.
...
BROADRIDGE FINANCIAL $37.09 (New York symbol BR; TSINetwork Rating: Extra Risk) (201-714-3000; www.broadridge.com; Shares outstanding: 119.0 million; Market cap: $4.4 billion; Dividend yield: 2.3%) earned $48.0 million, or $0.39 a share, in its fiscal 2014 first quarter, which ended September 30, 2013. That’s up 116.0% from $22.0 million, or $0.18 a share, a year earlier.
< br /> Revenue rose 11.0%, to $545.2 million from $495.8 million. Broadridge continues to do a good job of attracting new clients. It also held on to 99% of its existing customers.
< br /> Excluding unusual items, the company expects to earn $2.00 to $2.10 a share in fiscal 2014. The stock trades at a reasonable 18.1 times the midpoint of this range.
...
DOREL INDUSTRIES $36.46 (Toronto symbol DII.B; TSINetwork Rating: Extra Risk) (514-731-0000; www.dorel.com; Shares outstanding: 31.5 million; Market cap: $1.2 billion; Dividend yield: 3.4%) makes a range of products, including ready-to-assemble home and office furniture; juvenile products, such as car seats, strollers, high chairs, toddler beds and cribs; and recreational products, mainly bicycles.
< br /> In the three months ended September 30, 2013, Dorel’s sales fell 1.0%, to $607.3 million from $613.3 million a year earlier (all figures except share price and market cap in U.S. dollars). Slower sales in the juvenile products segment offset gains at the home furnishing division and the recreational and leisure business.
< br /> Excluding one-time items, earnings per share were unchanged at $0.64.
...