Opinions by Don Lato | StockChase
1202
Don Lato

President

ON STOCKCHASE SINCE Nov 2007

Padlock Investment Management

1202
Don Lato

President

ON STOCKCHASE SINCE Nov 2007

Padlock Investment Management


Opinions by Don Lato


Signal Opinion Expert Chart
N/A
General Market Comment 

November 30, 2017

Market.  The Dow just keeps on going.  A lot has to do with the 1 - 2 punch of tax reform.  Wall street reform is right behind it.  Some stocks may have gotten a little ahead of themselves.  He remains constructive long term through growth in earnings on the market.  He is more constructive on US vs. Canadian equities.  It is a growth story in a global expansion that is not kicking in on the commodity story.  There are a lot of global stocks that are not commodity related that will do well.  You have to be very selective on energy stocks.  You should look for energy companies that price their oil in Brent rather than WTI.

Market.  The Dow just keeps on going.  A lot has to do with the 1 - 2 punch of tax reform.  Wall street reform is right behind it.  Some stocks may have gotten a little ahead of themselves.  He remains constructive long term through growth in earnings on the market.  He is more constructive on US vs. Canadian equities.  It is a growth story in a global expansion that is not kicking in on the commodity story.  There are a lot of global stocks that are not commodity related that will do well.  You have to be very selective on energy stocks.  You should look for energy companies that price their oil in Brent rather than WTI.

Unknown
Don Lato

President, Padlock Investment M...

PricePrice
$0.020
Owned Owned
_N/A

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DON'T BUY
General Market Comment 

November 30, 2017

Pot Stocks in Canada.  Caller was a client who wanted to buy weed last year and the guest ‘wisely’ talked him out of it but the caller put it into his portfolio a couple of weeks ago.  The legislative hurtles wall be kicked off over the next years but he will not recommend it to his clients as a whole.  There will be money made but a lot of money lost in the sector.  He does not believe Constellation (STZ-N) will take over a pot stock.

Pot Stocks in Canada.  Caller was a client who wanted to buy weed last year and the guest ‘wisely’ talked him out of it but the caller put it into his portfolio a couple of weeks ago.  The legislative hurtles wall be kicked off over the next years but he will not recommend it to his clients as a whole.  There will be money made but a lot of money lost in the sector.  He does not believe Constellation (STZ-N) will take over a pot stock.

Unknown
Don Lato

President, Padlock Investment M...

PricePrice
$0.020
Owned Owned
Unknown

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BUY
General Market Comment 

November 30, 2017

Canadian banks.  You should have a minimum of 20 stocks for diversification’s sake.  Put at most 2% into any one bank.  You would not go wrong buying the top five.  The tops are TD-T and CM-T.

Canadian banks.  You should have a minimum of 20 stocks for diversification’s sake.  Put at most 2% into any one bank.  You would not go wrong buying the top five.  The tops are TD-T and CM-T.

Unknown
Don Lato

President, Padlock Investment M...

PricePrice
$0.020
Owned Owned
Unknown

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PAST TOP PICK
Borg Warner(BWA-N) 

November 30, 2017

(A Top Pick Jan 24/17, Up 29%)  It had come out of a disappointing quarter so the stock had sold off a bit.  They are in the Auto business in Propulsion.  There were concerns about being left behind as combustion engines were phased out.  But hybrids are the fastest growing sector of this company.  He thinks it is still quite cheap here.  12 times earnings.

Automotive

(A Top Pick Jan 24/17, Up 29%)  It had come out of a disappointing quarter so the stock had sold off a bit.  They are in the Auto business in Propulsion.  There were concerns about being left behind as combustion engines were phased out.  But hybrids are the fastest growing sector of this company.  He thinks it is still quite cheap here.  12 times earnings.

Automotive
Don Lato

President, Padlock Investment M...

PricePrice
$55.680
Owned Owned
Yes

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HOLD
CCL Industries (B)(CCL.B-T) 

November 30, 2017

It stumbled a bit in the last 6 months since their last acquisition.  They have a tremendous track record with acquisitions and adding to cash flow.  He does not see much multiple expansion in their future.

packaging/containers

It stumbled a bit in the last 6 months since their last acquisition.  They have a tremendous track record with acquisitions and adding to cash flow.  He does not see much multiple expansion in their future.

packaging/containers
Don Lato

President, Padlock Investment M...

PricePrice
$59.790
Owned Owned
Yes

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DON'T BUY
Canadian Natural Rsrcs(CNQ-T) 

November 30, 2017

SU-T vs. CNQ-T.  SU-T is a great company.  With CNQ-T they are the two big guys in the field.  He owns neither one but he would lean a little more to CNQ-T because of better valuation.  The yield is not as great but they have more potential to bump the dividend up.  Unit we get a better energy environment in Canada the growth will be limited.

oil/gas

SU-T vs. CNQ-T.  SU-T is a great company.  With CNQ-T they are the two big guys in the field.  He owns neither one but he would lean a little more to CNQ-T because of better valuation.  The yield is not as great but they have more potential to bump the dividend up.  Unit we get a better energy environment in Canada the growth will be limited.

oil/gas
Don Lato

President, Padlock Investment M...

PricePrice
$43.760
Owned Owned
No

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DON'T BUY
Cenovus Energy(CVE-T) 

November 30, 2017

He wishes he was as positive on the long term prospects as with TOU-T.  They sold some assets but he would stay on the sidelines with CVE-T.

oil/gas

He wishes he was as positive on the long term prospects as with TOU-T.  They sold some assets but he would stay on the sidelines with CVE-T.

oil/gas
Don Lato

President, Padlock Investment M...

PricePrice
$12.300
Owned Owned
Unknown

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HOLD
Enbridge(ENB-T) 

November 30, 2017

If you hold it, then continue.  You will be paid to hold it and they are bumping up the dividend next year but there will not be capital appreciation so don’t buy it.

oil/gas pipelines

If you hold it, then continue.  You will be paid to hold it and they are bumping up the dividend next year but there will not be capital appreciation so don’t buy it.

oil/gas pipelines
Don Lato

President, Padlock Investment M...

PricePrice
$48.650
Owned Owned
Unknown

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WATCH
Gilead Sciences Inc.(GILD-Q) 

November 30, 2017

He bought it at this level 3 or 4 year ago.  The growth has stopped.  The HEP C drugs caused it to run as well but they cured people so it was not going to lend itself to a lot of recurring revenue.  The worst is behind them.  They have other drugs in HIV and Oncology that could get the growth back up.

biotechnology/pharmaceutical

He bought it at this level 3 or 4 year ago.  The growth has stopped.  The HEP C drugs caused it to run as well but they cured people so it was not going to lend itself to a lot of recurring revenue.  The worst is behind them.  They have other drugs in HIV and Oncology that could get the growth back up.

biotechnology/pharmaceutical
Don Lato

President, Padlock Investment M...

PricePrice
$74.780
Owned Owned
Yes

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PARTIAL BUY
Home Depot(HD-N) 

November 30, 2017

At these levels it is a great company for the long term.  He owned it at one time.  There is still room here.  You end up kicking yourself for always thinking they are  bit expensive.  With housing coming back in the US, they are going to put some money back into their house.  He would establish a half position and then see how it goes.

specialty stores

At these levels it is a great company for the long term.  He owned it at one time.  There is still room here.  You end up kicking yourself for always thinking they are  bit expensive.  With housing coming back in the US, they are going to put some money back into their house.  He would establish a half position and then see how it goes.

specialty stores
Don Lato

President, Padlock Investment M...

PricePrice
$179.820
Owned Owned
No

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DON'T BUY
Kinross Gold(K-T) 

November 30, 2017

He never takes gold stock questions and does not own them.  In 1980 gold was at $800 and the Dow was at 800 points.  The Dow crossed $24k today while gold is hoping to get past $1300.  He does not see the justification.  He has ever owned any gold stocks.

precious metals

He never takes gold stock questions and does not own them.  In 1980 gold was at $800 and the Dow was at 800 points.  The Dow crossed $24k today while gold is hoping to get past $1300.  He does not see the justification.  He has ever owned any gold stocks.

precious metals
Don Lato

President, Padlock Investment M...

PricePrice
$5.390
Owned Owned
No

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WEAK BUY
Mastercard Inc.(MA-N) 

November 30, 2017

V-N vs. MA-N.  They keep going up.  V-N is slightly better valuation than M-N and he prefers to by M-N when it is two or three multiple points between the two.  Generally speaking they are both great and have a huge runway ahead of them.  A lot of countries are still just scratching the surface.  He just owns V-N right now.

other services

V-N vs. MA-N.  They keep going up.  V-N is slightly better valuation than M-N and he prefers to by M-N when it is two or three multiple points between the two.  Generally speaking they are both great and have a huge runway ahead of them.  A lot of countries are still just scratching the surface.  He just owns V-N right now.

other services
Don Lato

President, Padlock Investment M...

PricePrice
$150.470
Owned Owned
No

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HOLD

They have had a couple of disappointing quarters, where the growth has not been there in the aftermarket side.  They delivered a lot of busses and they are simply a lot better than in the past and so the repairs are down.  Still a great company with a huge 3 to 4 year backlog.  They announced a record backlog recently.  There is some disappointment that they are not ramping up production.  He would definitely hold it.  They are a cash generating machine.  Until they come out with another acquisition they will spin out a lot of cash that will end up in shareholder’s pockets.

income trust

They have had a couple of disappointing quarters, where the growth has not been there in the aftermarket side.  They delivered a lot of busses and they are simply a lot better than in the past and so the repairs are down.  Still a great company with a huge 3 to 4 year backlog.  They announced a record backlog recently.  There is some disappointment that they are not ramping up production.  He would definitely hold it.  They are a cash generating machine.  Until they come out with another acquisition they will spin out a lot of cash that will end up in shareholder’s pockets.

income trust
Don Lato

President, Padlock Investment M...

PricePrice
$49.070
Owned Owned
Yes

Must be logged in to use chart
DON'T BUY
Netflix Inc.(NFLX-Q) 

November 30, 2017

It is a great company.  He just does not see how they can grow into their valuation and make money for shareholders.  He would have said the same thing last year.  Yet their subscriber numbers continue to grow.  It is not growth at a reasonable price.  AAPL-Q is at 15 times earnings and 12 if you take the cash off the balance sheet.  AAPL-Q is still his number one holding in his portfolios.

It is a great company.  He just does not see how they can grow into their valuation and make money for shareholders.  He would have said the same thing last year.  Yet their subscriber numbers continue to grow.  It is not growth at a reasonable price.  AAPL-Q is at 15 times earnings and 12 if you take the cash off the balance sheet.  AAPL-Q is still his number one holding in his portfolios.

Unknown
Don Lato

President, Padlock Investment M...

PricePrice
$187.580
Owned Owned
Unknown

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WATCH
Precision Drilling(PD-T) 

November 30, 2017

You see companies cutting back on exploration budgets.  This stock may have bottomed out here.  It is building a base for the future when the environment gets better.  He would not buy it but it might have trading potential over the next year.  Conditions can’t get much worse.  Watching it before getting back in.

oil/gas field services

You see companies cutting back on exploration budgets.  This stock may have bottomed out here.  It is building a base for the future when the environment gets better.  He would not buy it but it might have trading potential over the next year.  Conditions can’t get much worse.  Watching it before getting back in.

oil/gas field services
Don Lato

President, Padlock Investment M...

PricePrice
$3.620
Owned Owned
Unknown

Must be logged in to use chart
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