Don Lato
Member since: Nov '07
President at
Padlock Investment Management

Latest Top Picks

(A Top Pick Dec 21/18, Up 17%) A company in the automotive industry. Tariffs and a slowing sector were headwinds, but they have gained market share. Earnings have grown modestly, but it trades at only 9 times earnings and offers a dividend yield just under 2%.
(A Top Pick Dec 21/18, Up 22%) A Colombian energy play. It had announced they had bought back 10% of their shares. It does not have any infrastructure constraints like its Canadian peers. It receives Brent pricing for its oil. They have lots of cash which allows them to another share buyback, likely in December. If you want to be in energy, you can't go wrong. It trades at 3 times cash flow.
(A Top Pick Dec 21/18, Up 63%) In the midst of trade war concerns, the timing to buy was great. It has rebounded every since early 2019, trading to new highs. iPhone 11 first orders are reportedly quite strong. The stock trades at 18 times earnings, but inline with the last 10 year valuations. His biggest holding.
A very innovative company. They announced a new component for electric cars that will allow hybrids to go to only one engine. The contract begins 2022. Trades at only 9 times earnings. They have disposed of an asbestos related company that cost them $180 million. Yield 1.75% (Analysts’ price target is $45.27)
They are involved in in-vitro fertilization. The industry is about $1 billion and they are the top 10 companies. As more women wait to have their first pregnancy, he thinks it will benefit by future demand. It trades at 10 times EBITDA, compared to the industry leader that trades at 30 times. It can grow through acquisition or organically or could also be a take out target. Yield 0% (Analysts’ price target is $1.55)