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
Learn the metrics that define “safe” stocks, including cash flow, payout ratios, debt, and moats, plus TFSA/RRSP tips for Canadian dividend investors.
Our outlook on gold and silver and two precious metals ETFs
Most precious metals stocks dropped when gold fell to $1,200 U.S. an ounce and silver declined to $18.50 U.S. an ounce in June 2013. Both metals have rebounded somewhat lately, with gold now at $1,371 and silver at $22.92. Here are two low-fee exchange traded funds that offer global gold and silver miners....
Maple Leaf Foods aims to add value with restructuring plan
MAPLE LEAF FOODS INC. (Toronto symbol MFI; www.mapleleaf.ca) is Canada’s largest food processing company. It mainly sells its products, which include fresh and prepared meats and poultry, under the Maple Leaf and Schneider brands. Though 90.0%-owned Canada Bread the company also makes fresh and frozen bread, pastries and pasta....
Two high-yielding energy juniors with aggressive expansion strategies
Pat McKeough responds to many requests from members of his Inner Circle for specific advice on specific stocks and other investments 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....
Oil sands project helps Pengrowth diversify away from gas
PENGROWTH ENERGY CORP. (Toronto symbol PGF; www.pengrowth.com) produces oil and natural gas in Western Canada and off the Nova Scotia coast. Gas accounts for about 60% of its production; the other 40% is oil....
ENERFLEX LTD. $14.07 (Toronto symbol EFX; TSINetwork Rating: Extra Risk) (403-387-6377; www.enerflex.com; Shares outstanding: 78.0 million; Market cap: $1.1 billion; Dividend yield: 2.0%) rents and sells equipment and services for natural gas production, including compression and processing plants, refrigeration equipment and power generators.

The company has a strong position in three expanding markets: U.S. and Canadian shale gas; Australian natural gas from coal beds; and conventional Middle Eastern natural gas, most of which gets converted to liquefied natural gas (LNG) for shipping worldwide.

In the quarter ended June 30, 2013, Enerflex’s revenue fell 12.3%, to $311.0 million from $354.6 million a year ago. That’s because the company saw lower sales across all of its markets. Earnings per share fell 4.0%, to $0.24 from $0.25.
...
TOROMONT INDUSTRIES LTD. $22.86 (Toronto symbol TIH; TSINetwork Rating: Extra Risk) (416-667- 5511; www.toromont.com; Shares outstanding: 76.6 million; Market cap: $1.8 billion; Dividend yield: 2.3%) distributes a broad range of industrial equipment, including machinery made by Caterpillar Inc. It also makes refrigeration systems through its CIMCO division.

The company completed the spinoff of Enerflex Ltd. (see right) in July 2011. Shareholders received shares of the new Toromont and shares of Enerflex.

In the three months ended June 30, 2013, Toromont’s revenue fell 1.3%, to $374.7 million from $379.6 million a year earlier. Record sales at the CIMCO division failed to offset lower equipment sales and rentals, particularly to mining customers.
...
ALIMENTATION COUCHE-TARD $63.74 (Toronto symbol ATD.B; TSINetwork Rating: Extra Risk) (1-800-361-2612; www.couche-tard.com; Shares outstanding: 179.4 million; Market cap: $11.8 billion; Dividend yield: 0.6%) reports that its sales jumped 48.0% in the three months ended July 21, 2013, to $8.9 billion from $6.0 billion a year earlier.

The gain mostly came from Norway’s Statoil Fuel & Retail ASA, which Couche-Tard bought for $2.7 billion in June 2012 (all figures except share price and market cap in U.S. dollars). It also benefited from higher fuel volumes and merchandise sales.

Excluding one-time items, earnings rose 20.9%, to $220.0 million from $182.0 million. Earnings per share rose 16.0%, to $1.16 from $1.00, on more shares outstanding. The latest earnings beat the consensus estimate of $0.95 a share.
...
TIM HORTONS $59.06 (Toronto symbol THI; TSINetwork Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 151.0 million; Market cap: $9.0 billion; Dividend yield: 1.8%) has opened its first coffee-and-donut store in Kuwait under its franchise deal with Dubai-based Apparel Group. This is the company’s 32nd store in the Persian Gulf.

In February 2011, Tim Hortons signed a master license agreement with the Apparel Group to open 120 outlets in the United Arab Emirates (UAE), Qatar, Bahrain, Kuwait and Oman over a five-year period.

So far, the company has focused on growing in the key UAE cities of Dubai and Abu Dhabi. But it also entered Oman with two locations in 2012.
...
GOODYEAR TIRE & RUBBER CO. $22.17 (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (330-796-2122; www.goodyear.com; Shares outstanding: 245.5 million; Market cap: $5.4 billion; No dividends paid) has signed an important new labour contract with the United Steelworkers. The four-year deal covers about 8,000 workers at its six U.S. plants.

The agreement provides Goodyear with flexibility to reduce staffing and continues medical-benefit cost sharing.

Wages and benefits remain in line with the prior agreement. The contract protects Goodyear against strikes over its four-year term, but it also protects workers against closures at the six plants.
...