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Value Stocks

GENERAL MILLS INC. $69 is a hold. This consumer staples giant (New York symbol GIS; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 564.5 million; Market cap: $40.0 billion; Price-to-sales ratio: 2.0; Dividend yield: 3.4%; www.generalmills.com) is one of the world’s largest foodmakers....

1 min read

Pat McKeough

Value Stocks

Customers opt for cheaper equipment

SNAP-ON INC. $292 is a hold. The company (New York symbol SNA; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 52.9 million; Market cap: $15.4 billion; Price-to-sales ratio: 3.1; Dividend yield: 2.5%; TSINetwork Rating: Average; www.snapon.com) makes tools for auto mechanics and industrial customers.

In the fourth quarter of 2023, Snap-On’s revenue (excluding financial services) rose 3.4%, to $1.20 billion from $1.16 billion a year earlier....

1 min read

Pat McKeough

Value Stocks

Japanese carmakers have an EV edge

Governments in the U.S. and other countries are now mandating that automakers phase out production of gasoline-powered cars and trucks and shift to electric-powered vehicles (EVs). However, consumer demand for EVs remains weak due to their higher costs and concerns over their range of use between chargings and the availability of charging stations, themselves.

We continue to prefer Japanese automakers Toyota and Honda for your new buying instead of U.S.-based Ford....

4 min read

Pat McKeough

Value Stocks

Cisco completes big buy

CISCO SYSTEMS INC. $50 is a buy. The company (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.05 billion; Market cap: $202.5 billion; Price-to-sales ratio: 3.5; Dividend yield: 3.2%; TSINetwork Rating: Average; www.cisco.com) has now completed its acquisition of Splunk Inc....

1 min read

Pat McKeough

Energy Stocks

Cut your oil risk with Chevron

We recommend that most investors maintain some exposure to the oil and gas industry as part of a balanced portfolio. That’s mainly because it offers a hedge (some protection) against inflation.

To further cut your risk, you should focus mainly on high-quality producers, like Chevron, with large reserves in politically stable countries....

4 min read

Pat McKeough

How To Invest

Q: Pat, can you give me your advice on Capstone Copper, and the outlook for copper. Thank you.

A: Capstone Copper Corp., $7.72, symbol CS on Toronto (Shares outstanding: 759.6 million; Market cap: $6.2 billion; www.capstonecopper.com), is an Americas-focused copper mining company headquartered in Vancouver, Canada.

Capstone owns and operates the Pinto Valley copper mine in Arizona, the Cozamin copper-silver mine in Zacatecas, Mexico, the Mantos Blancos copper-silver mine in the Antofagasta region of Chile, and 70% of the Mantoverde copper-gold mine in Chile’s Atacama region.

In 2023, the mining firm completed its flagship Mantoverde mine....

2 min read

Pat McKeough

How To Invest

Q: Thanks for all the sound advice for my portfolio! Can I get your recommendation on Henry Schein? Thanks.

A: Henry Schein Inc., $74.67, symbol HSIC on New York (Shares outstanding: 128.5 million; Market cap: $9.5 billion; www.henryschein.com), is the world’s largest provider of health-care products and services to doctors and dentists.

The company has more than one million customers worldwide and operations in 33 countries, including the U.S., Canada, and the U.K.

Schein manages a centralized and automated distribution network, with a selection of more than 120,000 branded products, and an additional 180,000 products available as special-order items.

The company conducts its business through two segments: (i) health-care distribution and (ii) technology and value-added services....

7 min read

Pat McKeough

How To Invest

Q: What do you think about the Hamilton Enhanced Canadian Bank ETF? It seems to have an interesting approach. Thank you.

A: Hamilton Enhanced Canadian Bank ETF, $21.04, symbol HCAL on Toronto (Units outstanding: 25.3 million; Market cap: $532.3 million; hamiltonetfs.com), aims to track the Solactive Canadian Bank Mean Reversion Index.

This index invests in the biggest six Canadian banks—Bank of Nova Scotia, Bank of Montreal, CIBC, Royal Bank, TD and National Bank....

2 min read

Pat McKeough

How To Invest

What is Pat’s commentary for the week of March 20, 2024

As long-time readers know, we welcomed the arrival of ETFs (Exchange Traded Funds) when they came on the market as “the most benign stock market innovation we’ve seen since stock commissions became negotiable.”

However, the financial industry often figures out a way to offer investors attractive terms on a newly minted version of an innovation, just to get their interest....

1 min read

Pat McKeough

How To Invest

Spinoffs & Takeovers Hotline – Friday, March 15, 2024

BUILDERS FIRSTSOURCE INC., $195.49, symbol BLDR on NYSE, is the largest U.S. supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction and repair and remodeling.

The company makes products such as roof and floor trusses, wall panels, stairs, vinyl windows, custom millwork, and pre-hung doors....

8 min read

Pat McKeough

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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.