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The Successful Investor Hotline – Friday, February 21, 2025

LOBLAW COMPANIES LTD., $175.89, Toronto symbol L, is a buy.

The company operates 1,131 supermarkets under several banners, including Loblaws, Zehrs, Provigo, Real Canadian Superstore and No Frills.

In March 2014, it purchased the Shoppers Drug Mart chain for $12.3 billion in cash and shares....

7 min read

Pat McKeough

Growth Stocks

Here’s our Power Recommendation Portfolio for March 2025

You Can See Our Current Power Recommendations For March 2025 Here.

Understanding our recommendations: Power Buy—These stocks are our top choices for new buying now....

1 min read

Pat McKeough

Growth Stocks

Outlook keeps brightening for these leaders

The coronavirus pandemic forced the cancellation of most vacation plans. However, the reopening of the economy has spurred strong demand for travel, and both Wyndham and Travel + Leisure should benefit from that continued strength. We see each as a buy.

WYNDHAM HOTELS & RESORTS, $111.77, is a buy. The company (New York symbol WH; TSINetwork Rating: Extra Risk) (www.wyndhamhotels.com; Shares outstanding: 77.7 million; Market cap: $8.7 billion; Dividend yield: 1.4%) is the world’s largest hotel franchiser, with 893,000 rooms spread across 9,200 hotels, with 25 brands in 95 countries.

Wyndham Hotels’ revenue in the three months ended December 31, 2024, rose 6.2%, to $341 million from $321 million a year earlier....

2 min read

Pat McKeough

Growth Stocks

MP Materials achieves a key rare-earths milestone

China currently dominates rare-earth production due in part to higher labour costs and tighter environmental restrictions in the U.S. However, politicians and government officials in the U.S. (as well as Canada) are now trying to promote domestic production, and MP Materials continues to benefit from that effort.

MP MATERIALS, $22.99, is still a buy. The company (New York symbol MP; TSINetwork Rating: Extra Risk) (www.mpmaterials.com; Shares o/s: 163.2 million; Market cap: $3.8 billion; No divids.) has commenced commercial production of neodymium-praseodymium (NdPr) metal and trial production of automotive-grade, sintered neodymium-iron-boron (NdFeB) magnets at its flagship Independence facility in Texas.

NdFeB magnets—the world’s most powerful and efficient permanent magnets—are essential components in vehicles, drones, robotics, electronics, and aerospace and defence systems.

Independence is now poised to produce 1,000 metric tons of finished NdFeB magnets per year, with a gradual production ramp-up beginning in late 2025....

1 min read

Pat McKeough

Growth Stocks

Here are updates on two of your buys: AbbVie and Amazon

Long-time readers know that we aim to keep you informed of important news about the stocks we cover. That means highlighting developments and plans that promise to bolster investor gains. Here are two buys that stand out this month:

ABBVIE INC., $197.35, is a buy. The company (New York symbol ABBV; TSINetwork Rating: Above Average) (www.abbvie.com; Shares outstanding: 1.8 billion; Market cap: $348.4 billion; Dividend yield: 3.3%) claimed the leading spot last year for TV drug ad spending; specifically, for commercials promoting its immunology blockbusters.

AbbVie’s Skyrizi claimed first place with nearly $377 million spent on 20 separate ads for the drug....

2 min read

Pat McKeough

Energy Stocks

Coterra starts automated fracking

COTERRA ENERGY, $28.69, is a buy. The company (New York symbol CTRA; TSINetwork Rating: Extra Risk) (www.coterra.com; Shares outstanding: 736.4 million; Market cap: $21.1 billion; Dividend yield: 2.9%) and Halliburton Energy Services (symbol HAL on New York) have announced the launch of autonomous hydraulic fracturing technology in North America.

Before this service, fracture decisions were managed manually while pumping....

1 min read

Pat McKeough

Growth Stocks

Two medical device makers with gains ahead

The pandemic presented both of these firms with unique challenges. However, each remained profitable and is well positioned to keep prospering as the economy continues to rebound. Trends now underway—as well as the strong position of these firms in key markets—will power their gains....

2 min read

Pat McKeough

Growth Stocks

This stock offers limited prospects

You should remain wary of stocks that attract broker/media attention because of high-profile products or services, and their business models. Here’s a closer look at one stock with risks that prospective investors should take into consideration:

BROWN-FORMAN CORP., $31.00, (New York symbol BF.B; TSINetwork Rating: Average) (www.brown-forman.com; Shares o/s: 427.7 million; Market cap: $14.7 billion; Dividend yield: 2.9%) makes and sells alcoholic beverages....

1 min read

Pat McKeough

Growth Stocks

Use these stocks to power your AI returns

Artificial intelligence (AI) is an example of an investment idea that could boost your investment returns, or, more likely, end up costing you money. All in all, we think that the biggest, surest gains from AI will come from investing in established businesses that are already profitable and growing, and that can gain all the more by applying AI to their operations.

Here are two companies that are already profitably taking advantage of AI, and they should be among the leaders in the push to extend AI’s use:

FAIR ISAAC CORP., $1,755.26, is a buy. The company (New York symbol FICO; TSINetwork Rating: Average) (www.fairisaac.com; Shares outstanding: 24.4 million; Market cap: $42.9 billion; No divd.) is best known for its FICO Scores software....

2 min read

Pat McKeough

Mining Stocks

Rising output adds appeal to Alamos

ALAMOS GOLD, $32.28, is a buy. The company (Toronto symbol AGI; TSINetwork Rating: Extra Risk) (www.alamosgold.com; Shares o/s: 420.1 million; Market cap: $13.6 billion; Dividend yield: 0.4%) reported gold production of 140,200 ounces in the 2024 fourth quarter, up 8.3% from the third quarter of 2024....

1 min read

Pat McKeough

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Investors Association of Canada
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Cannabis

Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.