Don Lato
President at Padlock Investment Management
Member since: Nov '07 · 1434 Opinions
Rating Card
Premium content| All | 
Rating
| 
Big Win
| 
Win
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Neutral
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Loss
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Big Loss
|  |
|---|---|---|---|---|---|---|---|
| 3.61 | 64 28.07% | 51 22.37% | 31 13.60% | 43 18.86% | 39 17.11% | ||
| 1 Month | 3.79 | 5 10.87% | 17 36.96% | 16 34.78% | 8 17.39% | 0 0.00% | |
| 6 Months | 3.55 | 11 23.91% | 12 26.09% | 5 10.87% | 12 26.09% | 6 13.04% | |
| 12 Months | 3.56 | 15 33.33% | 6 13.33% | 6 13.33% | 8 17.78% | 10 22.22% | |
| 2 Years | 3.57 | 15 32.61% | 9 19.57% | 2 4.35% | 9 19.57% | 11 23.91% | |
| 5 Years | 3.59 | 18 40.00% | 7 15.56% | 2 4.44% | 6 13.33% | 12 26.67% |
Stock Opinions by Don Lato
COMMENT
Market Outlook The Bank of Canada has left some room for further interest rate increases, despite keeping rates flat today. Western resources are hurting and they will have to deal with that eventually. If the US cuts rates, Canada will have higher rates than the US -- helping the Canadian dollar. This will hurt some Canadian company earnings, but we have come to live with currency in these ranges. Q3 earnings were pessimistic, but revenues have surprised along with earnings. 70% of reporting companies have beat their estimates thus far.
COMMENT
Canadian banks? It is not a bad time to buy. They have lagged, especially in Q3, but seem to be finding their stride. They have stable profits and good earnings trading at cheap PE ratios. TD has lagged, because of their Ameritrade share trade, when brokerages in the US went to zero commissions. He would still favour buying TD.
COMMENT
Canadian banks? It is not a bad time to buy. They have lagged, especially in Q3, but seem to be finding their stride. They have stable profits and good earnings trading at cheap PE ratios. TD has lagged, because of their Ameritrade share trade, when brokerages in the US went to zero commissions. He would still favour buying TD.
banks
COMMENT
LULU vs GOOS? He would favour LULU as it has a more diversified product line. Both trade at high multiples. He does not own either.
clothing
COMMENT
LULU vs GOOS? He would favour LULU as it has a more diversified product line. Both trade at high multiples. He does not own either.
household goods
BUY
Antitrust? It hit all time highs a few days ago before earnings were released. They built in some provisions to protect against adverse regulatory outcomes and that was a drag on earnings, so the share price fell after the announcement. The antitrust issues have heated up again, but if they get fined they have over $100 per share in cash to pay fines. At the end of the day, he thinks they will argue that they give away their services for free so how are consumers being financially harmed? A good entry price right here.
Technology
HOLD
He has liked this stock for some time. They disappointed analysts last year and that is now behind them. You should start to see very good year over year comparisons. The multiple got traded down into 12 times earnings. As the comparisons improve he expects the multiple to improve taking the stock back to the mid-$30s share price. It may be by the end of next year. Yield 3.6%
household goods
PAST TOP PICK
(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.
oil
gas
