Don Lato Aflac Inc AFL-N BUY Sep 22, 2011

Provides supplemental health/life insurance in Japan and US. Valuations are quite good. About 80% of their business is from Japan. However, the 20% they have in the US is a real opportunity because corporations are downloading the benefits packages. Anything you want extra and above a very basic benefits package of a large corporation, you are going to have to go to something like this to get it. Yield of 2.55%.

(A Top Pick May 1/13. Up 15.54%.) His first attraction was its heavy exposure into Japan. However, when he looked at the earnings again in the fall, every line was in the US and Japan was growing at single digits. They also announced a stock buyback which only amounted to 2%-3% of their float, little bit less than what people expected. Switched from this into Hartford, which is more domestic.

(A Top Pick May 1/13. Up 18.69%.) About 77% of this company’s profits originate from Japan and around November, the Japanese market started turning around a little bit. He got stopped out. You probably revisit this one in May-June.

(A Top Pick May 1/13. Up 16.75%.) It reached his target, but the other issue he was having was its huge exposure to Japan. Sold his holdings. Still an attractive name.

80% of revenue comes from Japan. Not the greatest chart. It is below its 200 day moving average. You will have some real resistance at about $62. Met Life (MET-N) would be a better one to look at.

An American insurance company, whose major business has been in Japan for decades. Incredibly well-run. It amazes him that a US company has been able to succeed in a different culture for so long. A weaker yen hurts this company, but doesn't think this will have a huge impact on the stock price. Not a cheap stock and they could be running into some short-term earnings issues, which could cause earnings to decline, probably due to currency.

Likes consumer stables in the US better. Model price shows 15% upside. He would buy it.