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

Latest Top Picks

(A Top Pick Aug 23/18, Down 86%) He will continue to hold it for a tax loss opportunity later this year. A plan to bolster the dividend about a year ago did not materialize. He underestimated the amount of supply in this sector as sand is actually easy to find in the Permian region. US drilling has fallen sharply and this has put bearish pressure on sand demand. It is still EBITDA cash positive, but it will still face issues going forward.
(A Top Pick Aug 23/18, Up 2%) A postive gain on any Canadian energy holding is a real winner. They announced they will sell some of their Colombian mature assets to fund growth. They did not receive the bids they wanted and used their cash to buy back almost 10% of the share float. Production per share is up 25%, yet the stock is flat. They don't suffer from Norther American infrastructure constraints. A table pounding buy. Yield 0%
(A Top Pick Aug 23/18, Down 31%) A victim of sentiment and they reported a couple of soft earnings quarters. Still opening new stores. A huge contraction in the PE multiple from 18 down to 11.5 times. It could be bought here. Yield 3.8%
The industrial and business operating portion of the Brookfield portfolio. They have holdings around the world. The bottom line is the stock was trading $60 a year ago and is fundamentally too low. There is no shortage of demand from the pension sector space for what they offer. Their earnings are lumpy as they buy and sell entities. He has now doubts it will be up to $75 per share in the next year or two. Yield 0.77% (Analysts’ price target is $61.27)
Their products include other brands that have great online presence. Trades at 13 times earnings. He believes the multiple will return to historic levels. An iconic brand to buy and hold here. Yield 1.7% (Analysts’ price target is $34.67)