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
ARC RESOURCES $26.49 (Toronto symbol ARX; Shares outstanding: 312.4 million; Market cap: $8.2 billion; TSINetwork Rating: Speculative; Dividend yield: 4.5%; www.arcresources.com) produces oil and natural gas in Western Canada. The company’s average daily output of 93,436 barrels of oil equivalent (including gas) is weighted 61% to gas and 39% to oil.

In the three months ended June 30, 2013, cash flow per share rose 14.0%, to $0.65 from $0.57. Production fell slightly, but a 91.6% rise in gas prices more than offset the lower output.

ARC’s long-term debt is $755.0 million, or a low 9.2% of its market cap. It trades at 10.3 times its forecast 2012 cash flow of $2.56 a share.
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ISHARES AUSTRALIA INDEX FUND $25.47 (New York symbol EWA; buy or sell through brokers) is an ETF that holds the 70 largest Australian stocks. Its MER is 0.50%.

The fund’s top holdings include Commonwealth Bank of Australia, 10.7%; BHP Billiton, 10.6%; Westpac Banking Corp., 9.4%; Australia and New Zealand Banking Group, 7.8%; National Australia Bank, 7.5%; Woolworths, 4.0%; Wesfarmers, 3.8%; CSL Ltd., 2.9%; Rio Tinto, 2.5%; Woodside Petroleum, 2.3%; and Westfield Group, 2.1%.

Australia benefits from its stable banking and political systems. It is also rich in natural resources, and it’s close to key Asian markets with vast potential, including India and China.
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MANITOBA TELECOM $32.55 (Toronto symbol MBT; Shares outstanding: 67.8 million; Market cap: $2.2 billion; TSINetwork Rating: Average; Dividend yield: 5.2%; www.mts.ca) has paid an undisclosed sum for privately held EPIC Information Solutions.

Winnipeg-based EPIC provides computer and networking services to over 700 businesses in Manitoba and Saskatchewan. Its expertise will help Manitoba Telecom offer more communication services to its business clients, particularly in the fast-growing field of cloud computing.

EPIC’s existing management and staff will remain with the company, which will operate as a separate, wholly owned subsidiary of Manitoba Telecom.
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IBM $184.96 (New York symbol IBM; Shares outstanding: 1.1 billion; Market cap: $204.2 billion; TSINetwork Rating: Above Average; Dividend yield: 2.1%; www.ibm.com) recently paid an undisclosed sum for U.K.-based Daeja Image Systems. This company’s products make it easier to view digital images in hundreds of different computer file formats without first installing the program that created the original image.

This is key for businesses that need to manage huge volumes of information, and access data from multiple devices, such as PCs, tablets and smartphones.

Daeja’s products also help businesses mask sensitive information on computer images, and restrict access to certain files.
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ISHARES MSCI BRAZIL INDEX FUND $48.89 (New York Exchange symbol EWZ; buy or sell through brokers) is an exchange traded fund that is designed to track the Brazilian stock market.

Top holdings are Petrobras (oil and gas), 11.8%; Vale do Rio Doce (mining), 9.6%; Cia Itau Unibanco Holding (banking), 7.5%; Banco Brandesco preferred, 6.1%; Cia de Bebidas das Americas (beer and beverages), 5.7%; and BRF SA (food), 4.0%.

The ETF was launched on July 10, 2000. It has an expense ratio of 0.62%.
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ISHARES MSCI CHILE INVESTABLE MARKET INDEX FUND $51.39 (New York Exchange symbol ECH; buy or sell through brokers) is an ETF that aims to track the MSCI Chile Investable Market Index, which consists of stocks that are mainly traded on the Santiago Stock Exchange.

The fund’s top holdings are S.A.C.I. Falabella (retail), 9.2%; Empresas Copec SA (conglomerate), 8.5%; Enersis AS (electricity), 8.3%; Cencosud SA (retailer), 6.7%; Empresa Nacional de Electricidad (electricity), 5.9%; Banco Santander Chile (banking), 5.5%; LATAM Airlines SA, 5.1%; Empresas CMPC (pulp and paper), 4.4%; Banco de Chile, 4.2%; and Quimica y Minera de Chile (mining), 3.7%.

The fund’s industry breakdown is: Utilities, 24.4%; Financials, 17.9%; Consumer Staples, 13.3%; Materials, 11.2%; Consumer Discretionary, 10.9%; Energy, 8.5%; Industrials, 8.2%; Telecommunications, 3.0%; and Information Technology, 2.1%.
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ISHARES MSCI GERMANY FUND $28.10 (New York Exchange symbol EWG; buy or sell through brokers) tracks the stocks in the MSCI Germany Index.

This index aims to replicate 85% of the total market capitalization of the German stock market. The remaining 15% is unavailable for investment, partly due to limitations on foreign ownership.

The ETF’s top holdings are Bayer (diversified chemicals), 8.9%; Siemens (engineering conglomerate), 8.7%; BASF (chemicals), 8.0%; Daimler (autos), 6.8%; Allianz (insurance), 6.6%; SAP (software), 6.2%; Deutsche Bank, 4.3%; Deutsche Telekom, 3.7%; and Linde AG (industrial gases), 3.3%.
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ISHARES MSCI SOUTH KOREA INDEX FUND $62.49 (New York Exchange symbol EWY; buy or sell through brokers) is an exchange traded fund that aims to track the MSCI Korea Index.

The ETF’s top holdings are Samsung Electronics, 21.3%; Hyundai Motor Co., 6.2%; Posco (steel), 3.4%; Hyundai Mobis (auto parts), 3.2%; Shinhan Financial, 3.0%; Kia Motors, 2.8%; SK Hynix Semiconductor, 2.5%; Naver Corp. (Internet content), 2.5%; LG Chemical, 2.1%; and KB Financial, 2.2%.

The fund’s industry breakdown is as follows: Information Technology, 31.4%; Consumer Discretionary, 19.0%; Financials, 14.2%; Industrials, 13.8%; Materials, 10.5%; Consumer Staples, 5.1%; Energy, 2.6%; Utilities, 1.5%; Telecommunication Services, 1.0%; and Health Care, 0.8%.
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