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
These ETFs profit from two of Asia’s dominant economies
We think conservative investors could hold up to 10% of their portfolios in foreign stocks. One way to do that is to buy carefully chosen exchange traded funds (ETFs) that have an overseas focus....
Increasingly sophisticated manufacturers a growing market for MTS testing systems
Robots Working In Car Industry
josemoraes/josemoraes
MTS SYSTEMS CORP. (Nasdaq symbol MTSC; www.mts.com) makes equipment and software that manufacturers use to test the behaviour of materials, machines and structures. This helps its clients reduce errors and costs....
TEMPUR SEALY $39.81 (New York symbol TPX; TSINetwork Rating: Speculative) (800-878-8889; www.tempursealy.com; Shares outstanding: 60.4 million; Market cap: $2.4 billion; No dividends paid) completed its $1.3- billion purchase of rival Sealy in March 2013. This was a major acquisition for Tempur Sealy (formerly Tempur-Pedic), but it has let the company diversify into the market for traditional spring-coil beds.

The purchase should help Tempur Sealy offset rising competition in its current business; the company makes and distributes mattresses and neck pillows made of its Tempur material, which conforms to the body to provide support and alleviate pressure points.

Competitors Simmons Bedding and Serta have both successfully launched memory-foam mattresses that directly compete with Tempur Sealy’s products.
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WYNDHAM WORLDWIDE $62.75 (New York symbol WYN; TSINetwork Rating: Extra Risk) (973- 753-6000; www.wyndhamworldwide.com; Shares outstanding: 133.0 million; Market cap: $8.3 billion; Dividend yield: 1.9%) is one of the world’s largest hospitality companies, with 7,410 franchised hotels worldwide.

In addition to hotels, Wyndham manages vacation resorts, rental properties, luxury clubs and time-shares. The company now has over 106,000 vacation rental properties in 100 countries.

In the three months ended June 30, 2013, Wyndham’s revenue rose 10.0%, to $1.25 billion from $1.14 billion a year earlier. The company gets most of its revenue from vacation rather than business travel, and vacation bookings rose in the latest quarter. That helped push up its occupancy rate by 1.5%.
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SASOL LTD. (ADR) $50.56 (New York symbol SSL; TSINetwork Rating: Extra Risk) (082- 883-9697; www.sasol.com; ADRs outstanding: 649.2 million; Market cap: $34.4 billion; Dividend yield: 5.3%) has developed a technology to convert coal and natural gas into motor fuels and is now the world’s largest producer of fuel from coal at its facility in Secunda, South Africa.

In the year ended June 30, 2013, Sasol’s revenue rose 9.7%, to 146.8 billion South African rand (1 rand = $0.10 U.S.) from 133.8 billion rand the previous year. Earnings per ADR rose 24.5%, to 52.62 rand from 42.28 rand. The U.S. dollar rose against the rand, which pushed up the value of Sasol’s sales outside South Africa.

Sasol is considering spending up to $21 billion U.S. to build a complex in Louisiana that would turn natural gas into chemicals, diesel and other fuels.
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GOODYEAR TIRE & RUBBER CO. $22.44 (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (330-796-2122; www.goodyear.com; Shares outstanding: 246.0 million; Market cap: $5.5 billion; Dividend yield: 0.9%) will resume paying dividends with a quarterly payment of $0.05 a share in December 2013. That gives the stock a 0.9% yield, based on today’s price. The company last paid a dividend in December 2002.

The tire maker has also announced a $100-million share buyback plan, which it will mainly use to offset any potential share dilution caused by equity compensation programs for its employees.

The company is selling more tires in emerging markets in Latin America and Asia, while cost cuts and falling rubber prices are helping boost its profits.
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FIRSTSERVICE CORP. $41.59 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 31.9 million; Market cap: $1.4 billion; Dividend yield: 1.0%) is selling its 300- employee Field Asset Services subsidiary to Assurant Inc. for $55 million. This business specializes in preserving the value of foreclosed and abandoned homes by performing ongoing services, such as inspections, interior and exterior maintenance, trash removal, lawn maintenance and winterization.

FirstService bought Field Asset Services in 2007, and the business benefited from the housing crisis in the U.S., which saw many properties foreclosed and abandoned.

The sale is timely for FirstService, because increased U.S. government regulations are slowing the rate at which banks and other mortgage providers can foreclose on homeowners who are behind on their payments. Housing markets are also slowly recovering. As a result, there have been fewer newly foreclosed houses for Field Asset Services to manage.
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THE CHURCHILL CORP. $8.87 (Toronto symbol CUQ; TSINetwork Rating: Speculative) (780-454-3667; www.churchillcorporation.com; Shares outstanding: 24.7 million; Market cap: $218.7 million; Dividend yield: 5.4%) provides building construction, commercial and industrial electrical contracting, earthmoving and industrial insulation services to government and private sector clients, mainly in Western Canada.

Churchill’s Stuart Olson Dominion Construction division has just won $400 million worth of contracts. These projects involve building municipal, commercial and industrial buildings, as well as arenas, schools and hospitals.

To put these agreements in perspective, Churchill’s total backlog stood at a near record $1.8 billion on June 30, 2013.
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NISSAN MOTOR (ADR) $20.51 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111; www.nissan-global.com; Shares outstanding: 2.3 billion; Market cap: $45.7 billion; No dividends paid) has reported lower U.S. sales for the month of September, along with most other automakers. However, this September was unique because it had fewer selling days than the prior year.

Overall, Nissan sold 86,868 cars and trucks in the U.S. during the month. That’s down 5.5% from 91,907 in September 2012. The Nissan division’s sales fell 5.6%, to 77,828 vehicles. Infiniti sales dropped 4.3%, to 9,040 vehicles.

Like all automakers, Nissan needs a renewed global economic recovery to boost its sales. Meanwhile, its outlook is positive.
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