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.

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Learn the metrics that define “safe” stocks, including cash flow, payout ratios, debt, and moats, plus TFSA/RRSP tips for Canadian dividend investors.
NISSAN MOTOR (ADR) $20.55 (Nasdaq symbol NSANY; TSINetwork Rating: Above Average) (310-771-3111; www.nissan-global.com; Shares outstanding: 2.3 billion; Market cap: $45.2 billion; No dividends paid) plans to make multiple models of self-driving vehicles by 2020.

The technology will include laser scanners, cameras and advanced artificial intelligence. The system is an extension of Nissan’s current Safety Shield technology, which monitors a 360-degree area around the vehicle, warns the driver of risks and takes action if necessary. The technology can also be integrated with a standard in-car navigation system, so the vehicle knows which turns to take to reach its destination.

The company believes it will only cost $1,000 to add self-driving technology to a luxury sedan. It hopes the system will cut the number of accidents and free up the driver’s time for more productive uses.
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ADOBE SYSTEMS $52.58 (Nasdaq symbol ADBE; TSINetwork Rating: Average) (408-536-6000; www.adobe.com; Shares outstanding: 502.3 million; Market cap: $24.2 billion; No dividends paid) makes software that lets computer users create, edit and share documents in the popular PDF format. As well, graphic designers use its software to create print publications and web pages.

In the three months ended August 30, 2013, Adobe’s revenue fell 7.9%, to $995.1 million from $1.1 billion. That missed the consensus estimate of $1.01 billion.

Excluding one-time items, Adobe’s earnings fell 43.5% in the latest quarter, to $164.4 million, or $0.32 a share, from $291.2 million, or $0.58 a share, a year earlier. That’s because the company’s costs rose sharply as it transitions to selling its software as a subscription service instead of a one-time purchase. The latest earnings missed the consensus estimate of $0.34 a share.
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FAIR ISAAC CORP. $54.42 (New York symbol FICO; TSINetwork Rating: Average) (415-472-2211; www.fairisaac.com; Shares outstanding: 35.2 million; Market cap: $1.9 billion; Dividend yield: 0.2%) makes FICO Scores, the computer program that dominates the market for software that businesses use to evaluate customer creditworthiness. The company is also profiting by selling software that helps credit card issuers control fraud and analyze cardholders’ spending patterns.

In its fiscal 2013 third quarter, which ended June 30, 2013, Fair Isaac’s earnings per share before onetime items rose 9.6% from a year ago, to $0.80 from $0.73. Revenue gained 14.5%, to $183.8 million from $160.5 million.

Fair Isaac continues to spend around 9% of its revenue on research. That lets it keep producing innovative new products that help it stay ahead of its competitors.
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DOREL INDUSTRIES $39.39 (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: 3.2%) has agreed to buy 70% of Caloi, Brazil’s largest bicycle company, for an undisclosed sum.

Established in 1898, Caloi is one of the world’s oldest bicycle makers. It is also Latin America’s top-selling bicycle brand and the leader in the Brazilian market.

Caloi’s plant in the Brazilian city of Manaus is the largest bicycle manufacturing facility outside Southeast Asia.

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SYMANTEC CORP. $25.36 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (1-408-517-8000; www.symantec.com; Shares outstanding: 698.6 million; Market cap: $17.7 billion; Dividend yield: 2.4%) sells computer security technology, including anti-virus and email-filtering software, to businesses and consumers. It also offers data-archiving software.

In Symantec’s fiscal 2014 first quarter, which ended June 28, 2013, its revenue rose 2.5%, to $1.75 billion from $1.68 billion a year earlier. The company is doing a good job of selling its products as ongoing subscriptions instead of one-time purchases. Subscriptions now account for 45% of its revenue, up from 44% a year ago.

Earnings per share rose 7.3%, to $0.44 from $0.41. That easily beat the consensus estimate of $0.36.
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Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a beginning or experienced investor, these weekly updates are designed to give you specific investment tips and stock market advice. Each Investor Toolkit update gives you a fundamental piece of investment advice, and shows you how you can put it into practice right away. Today’s tip: “Dividend Reinvestment Plans have attractive features, but they shouldn’t be the sole reason you invest in a stock—or limit yourself to a portfolio of DRIPs.”...
Nordstrom aims to combat discount chains with clearance outlets and innovative sales strategies
NORDSTROM INC. (New York symbol JWN; www.nordstrom.com) mainly sells clothing, accessories and footwear. The company owns and operates 248 stores in 33 states. In the second quarter of its 2014 fiscal year, which ended August 3, 2013, Nordstrom’s sales rose 6.3%, to $3.2 billion from $3.0 billion a year earlier. Same-store sales rose 4.2% on strong demand for men’s apparel, men’s shoes and children’s clothing. Online sales jumped 37%....
market analysis - stock image
“Calling the market” is a seductive but potentially destructive activity for those who make a living by advising people about where and how to invest their money. A few good calls on where the stock market is going can establish an advisor’s reputation for a decade or longer—if those calls happen to catch the attention of investors. But the funny thing is that among people who make a habit of calling the market, everybody has had at least a few good calls. The ones you never hear of just didn’t have the good fortune to get noticed by investors while making a good call....
Underground construction projects have this stock on the rise
Pat McKeough responds to many requests from members of his Inner Circle for specific advice on Canadian 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....