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How To Invest

What is Pat’s commentary for the week of October 25, 2022

Here’s Part Two of the text of the most-recent letter I sent to our Portfolio Management clients in July this year:

“What’s one more busted supply chain?

It’s natural for businesses to lament the breakdown of the world-spanning supply chains, since it’s costing them money....

8 min read

Pat McKeough

How To Invest

Spinoffs & Takeovers Hotline – Friday, October 21, 2022

CONSTELLATION SOFTWARE INC., $1,881.78, symbol CSU on Toronto, sells software tailored to individual businesses and agencies. It has more than 125,000 customers operating in both the public and private sectors of more than 100 countries.

The company is known for acquiring software companies and then successfully integrating them and adding value....

11 min read

Pat McKeough

How To Invest

Power Growth Investor Hotline – Friday, October 21, 2022

BIRCHCLIFF ENERGY LTD., $9.97, is a buy for aggressive investors. The company (symbol BIR on Toronto) develops and produces oil and gas, mainly in the Peace River Arch area of both Alberta and B.C. Its average output of 73,746 barrels of oil equivalent per day is 83% natural gas and 17% oil.

Cash flow in the quarter ended June 30, 2022, jumped sharply, to 1.08 a share from $0.34 a year earlier....

7 min read

Pat McKeough

How To Invest

Dividend Advisor Hotline – Friday, October 21, 2022

J.P. MORGAN CHASE & CO., $122.23, New York symbol JPM, remains a buy.

The stock lets investors tap the largest banking firm in the U.S., with total assets of $3.77 trillion as of September 30, 2022.

Morgan last raised your quarterly dividend with the October 2021 payment by 11.1%, to $1.00 a share from $0.90....

6 min read

Pat McKeough

How To Invest

Wall Street Stock Forecaster Hotline – Friday, October 21, 2022

MCDONALD’S CORP., $254.55, New York symbol MCD, is your #1 Conservative Buy for 2022.

The company is the world’s largest fast-food chain with 40,000 restaurants in 119 countries. It serves a wide variety of food but is best known for its hamburgers and french fries....

6 min read

Pat McKeough

How To Invest

The Successful Investor Hotline – Friday, October 21, 2022

EMERA INC., $51.12, Toronto symbol EMA, is still a buy.

The company owns 100% of Nova Scotia Power, that province’s main electricity supplier. It also owns 100% of Tampa Electric, which provides electricity to more than 765,000 customers. Its other interests include several power plants and natural gas pipelines in the U.S....

4 min read

Pat McKeough

Blue Chip Stocks

Intact Financial still has room to move higher

When choosing stocks for the Finance sector of their portfolio, most investors gravitate toward banks. However, there are many high quality, non-bank financial stocks that you should also consider. For instance, we think Intact Financial offers investors a particularly unique combination of value and growth.

For the 12 months ended October 3, 2022, while the S&P/TSX Composite Index fell 5.6%, Intact shares climbed an impressive 19.9%....

4 min read

Pat McKeough

Growth Stocks

Savvy strategies power their sales gains

During the pandemic, both Domino’s Pizza and Chipotle implemented savvy strategies to support their businesses. Now, as the economy normalizes, we think each is well-positioned to capitalize on its popular offerings to keep attracting dine-in, pick-up and takeout customers....

2 min read

Pat McKeough

Growth Stocks

Amazon.com makes moves to keep and attract workers

Amazon is now making some aggressive moves to ensure that it can successfully compete in the tight market for labour. We think this will pay off for the company, and its shareholders.

AMAZON.COM INC., $115.07, is a buy. The company (Nasdaq symbol AMZN; TSINetwork Rating: Average) (www.amazon.com; Shares o/s: 10.2 billion; Market cap: $1.2 trillion; No divds.) is now raising the average starting pay of its warehouse and transportation workers to more than $19 per hour from $18.

The wage hike is aimed at helping the company attract and retain workers in a tightening U.S....

1 min read

Pat McKeough

Growth Stocks

Here are updates on two of your buys

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

ADOBE INC., $299.83, is a buy. The company’s (Nasdaq symbol ADBE; TSINetwork Rating: Average) (www.adobe.com; Shares outstanding: 464.9 million; Market cap: $136.2 billion; No dividends paid) decision a few years ago to switch to selling its programs as ongoing subscriptions instead of one-time purchases continues to pay off for investors: In the three months ended September 2, 2022, revenue rose 12.7%, to a record $4.43 billion from $3.94 billion.

Earnings climbed 9.3%, to $3.40 a share from $3.11 a year earlier.

Adobe also spends a high 17% of its sales on research to stay ahead of the competition and add to its market share....

2 min read

Pat McKeough

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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.