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
Two high-yielding producers poised to profit from natural gas rebound
Natural gas prices are now at $3.58 U.S. per thousand cubic feet. That’s down from their high of almost $4.40 in April 2013 but well above the low of $1.82 in April 2012. Here are two high-yielding producers that we follow on behalf of the readers of Canadian Wealth Advisor....
Sealy acquisition gives Tempur a new name and a wider product line
TEMPUR SEALY (New York symbol TPX; www.tempursealy.com) is the world’s largest bedding provider. The company completed its $1.3-billion purchase of rival Sealy in March 2013. In May the company announced that shareholders had approved a change in its name, from Tempur-Pedic to Tempur Sealy....
Home Capital turns risky mortgage loans into big profits
HOME CAPITAL GROUP INC. (Toronto symbol HCG; www.homecapital.com) gets 90% of its revenue by making residential mortgage loans to borrowers who don’t meet the stricter standards of larger, traditional lenders, like banks. These clients include recent immigrants with limited credit histories, and self-employed individuals....
Norbord needs a U.S. housing recovery to keep shares rising, dividend high
Pat McKeough responds to many requests from members of his Inner Circle for specific advice on stocks 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....
Allied Properties REIT aims to boost revenues in joint venture with RioCan
ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST (Toronto symbol AP.UN; www.alliedpropertiesreit.com) owns 134 office buildings, mostly in major Canadian cities. These mainly Class I properties contain over 9.5 million square feet of leasable area....
PHILIPS ELECTRONICS N.V. ADRs $33 (New York symbol PHG; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 913.9 million; Market cap: $30.2 billion; Price-to-sales ratio: 0.9; Dividend yield: 3.0%; TSINetwork Rating: Average; www.philips.com) gets 43% of its revenue by making health care products, such as X-ray and magnetic resonance imaging (MRI) scanners. It also makes lighting (37% of revenue) and consumer electronics, such as appliances (20%).

In the quarter ended June 30, 2013, revenue rose 1.5%, to 5.65 billion euros from 5.57 billion euros a year earlier (1 euro = $1.40 Canadian). Philips earned 317 million euros, or 0.35 euros per ADR (each American Depositary Receipt represents one Philips common share). That’s up sharply from 102 million euros, or 0.11 euros per ADR, a year ago.

If you exclude restructuring costs and other unusual items, gross profits as a percentage of revenue improved to 9.4% from 7.3%.
...
KRAFT FOODS GROUP INC. $54 (Nasdaq symbol KRFT; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 595.6 million; Market cap: $32.2 billion; Price-to-sales ratio: 1.8; Dividend yield: 3.9%; TSINetwork Rating: Above Average; www.kraftfoodsgroup.com) makes a variety of grocery products, including Kraft macaroni and cheese, Oscar Mayer meats, Philadelphia cream cheese, Maxwell House coffee, Jell-O desserts and Miracle Whip salad dressing.




...
WELLS FARGO & CO. $43 (New York symbol WFC; Conservative Growth Portfolio, Finance sector; Shares outstanding: 5.3 billion; Market cap: $227.9 billion; Price-to-sales ratio: 2.7; Dividend yield: 2.8%; TSINetwork Rating: Average; www.wellsfargo.com) earned $5.3 billion, or $0.99 a share, in the quarter ended September 30, 2013. That’s up 12.7% from $4.7 billion, or $0.88 a share, a year ago.

These gains are largely the result of more borrowers repaying their loans on time. Loan-loss provisions fell 95.3%, to $75 million from $1.6 billion.

Revenue declined 3.5%, to $20.5 billion from $21.2 billion. Higher interest rates have hurt demand for new mortgages and refinancing of existing loans. Mortgage applications dropped 40.4%, to $87 billion from $146 billion a year earlier.
...
APACHE CORP. $89 (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 389.4 million; Market cap: $34.7 billion; Price-to-sales ratio: 2.1; Dividend yield: 0.9%; TSINetwork Rating: Average; www.apachecorp.com) has stopped looking for oil and gas off the coast of Kenya, because it has been unable to find enough to justify developing these fields.

The company now plans to focus on its onshore projects in North America, which should account for 55% of its production in 2013, up from 31% in 2009. That should cut Apache’s risk.

Apache is still a hold....