Don Lato
Member since: Nov '07
President at
Padlock Investment Management
Padlock Investment Management
1406 Opinions
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)
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COMMENT
COMMENT
August 27, 2019
Market Outlook An extremely volatile month with an average 1% intraday move during the month. Sentiment Trader reported the average is only 10 occurrences a month for this type of volatility. The Trade War is not likely to be settled soon and it is exacerbated by comments from the US President, he feels. Market sentiment is so poor presently. We should not head for the hills. Don't make any drastic moves in your portfolio, especially if you hold good quality companies. Bonds are up 20% this year. If interest rates go up when things stabilize, this could become very volatile as well.
Market Outlook An extremely volatile month with an average 1% intraday move during the month. Sentiment Trader reported the average is only 10 occurrences a month for this type of volatility. The Trade War is not likely to be settled soon and it is exacerbated by comments from the US President, he feels. Market sentiment is so poor presently. We should not head for the hills. Don't make any drastic moves in your portfolio, especially if you hold good quality companies. Bonds are up 20% this year. If interest rates go up when things stabilize, this could become very volatile as well.
Don Lato
President, Padlock Investment Management
BUY
BUY
August 27, 2019
5G Top Pick They are a measurement company that ensures 5G technology infrastructure is working properly. It trades at a decent multiple -- 22 times earnings. This is a recommendation from his analyst son-in-law.
5G Top Pick They are a measurement company that ensures 5G technology infrastructure is working properly. It trades at a decent multiple -- 22 times earnings. This is a recommendation from his analyst son-in-law.
BUY
BUY
August 27, 2019
Stay in this one. A company you want to hold in a volatile market. Lower interest rates would make this company suffer and this is the fundamental problem for them right now. They need higher rates to fund their actuarial exposure. Buy it here and hold long term. Yield 4.9%
Stay in this one. A company you want to hold in a volatile market. Lower interest rates would make this company suffer and this is the fundamental problem for them right now. They need higher rates to fund their actuarial exposure. Buy it here and hold long term. Yield 4.9%
insurance
COMMENT
COMMENT
August 27, 2019
Dividend sustainable? Normally a high yield like this is a red flag. The company has cut back on capex recognizing that replacing production is the goal. He feels the dividend should be sustainable. Eventually these holdings will thrive again. The caveat being the need to avoid a major global recession. Yield 10%
Dividend sustainable? Normally a high yield like this is a red flag. The company has cut back on capex recognizing that replacing production is the goal. He feels the dividend should be sustainable. Eventually these holdings will thrive again. The caveat being the need to avoid a major global recession. Yield 10%
Oil and Gas (Integrated Oils)
BUY
BUY
August 27, 2019
He has owned this for a long time. Pays a nice distribution that grows 2% per year. The stock has not been rising for years likely because of an occupancy issue that is slowing working itself out. It could be bought here as you are getting paid to wait. The demographics are in its favour.
Yield 4.1%
He has owned this for a long time. Pays a nice distribution that grows 2% per year. The stock has not been rising for years likely because of an occupancy issue that is slowing working itself out. It could be bought here as you are getting paid to wait. The demographics are in its favour.
Yield 4.1%
property mngmnt/investment
DON'T BUY
DON'T BUY
August 27, 2019
The talcum power and opioid issues are being worked out. If you extrapolate what could come from other states, it could become a real issue. There was knowledge on the talcum issue for years. He would stay away from this.
The talcum power and opioid issues are being worked out. If you extrapolate what could come from other states, it could become a real issue. There was knowledge on the talcum issue for years. He would stay away from this.
biotechnology/pharmaceutical
HOLD
HOLD
August 27, 2019
A definite hold. They reported earnings and it was good news -- including an increase in the dividend. It trades at 10 times next year's earnings. Now is not the time to sell. He is not as worried about the potential sell off in the Canadian banking sector due to increased credit exposures -- he believes this is already factored into the current share prices. The Canadian housing sector is far less vulnerable than the US banking sector.
A definite hold. They reported earnings and it was good news -- including an increase in the dividend. It trades at 10 times next year's earnings. Now is not the time to sell. He is not as worried about the potential sell off in the Canadian banking sector due to increased credit exposures -- he believes this is already factored into the current share prices. The Canadian housing sector is far less vulnerable than the US banking sector.
banks
PAST TOP PICK
PAST TOP PICK
August 27, 2019
(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, 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.
PAST TOP PICK
PAST TOP PICK
August 27, 2019
(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, 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%
oil/gas
PAST TOP PICK
PAST TOP PICK
August 27, 2019
(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%
(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%
household goods
COMMENT
COMMENT
August 27, 2019
Lack of stock splits? Stock splits are really non-consequential. They really were seen as a way to bring back investors and to allow some into the Indices. You will see fewer and fewer, especially now that trading commissions are so low.
Lack of stock splits? Stock splits are really non-consequential. They really were seen as a way to bring back investors and to allow some into the Indices. You will see fewer and fewer, especially now that trading commissions are so low.
Don Lato
President, Padlock Investment Management
COMMENT
COMMENT
August 27, 2019
Some of the big pharma concerns are real as President Trump is against drug pricing. Ultimately he does not think it will be devastating. He likes the industry, but prefers others like Walgreens.
Some of the big pharma concerns are real as President Trump is against drug pricing. Ultimately he does not think it will be devastating. He likes the industry, but prefers others like Walgreens.
specialty stores
COMMENT
COMMENT
August 27, 2019
Some of the big pharma concerns are real as President Trump is against drug pricing. Ultimately he does not think it will be devastating. He likes the industry, but prefers others like Walgreens.
Some of the big pharma concerns are real as President Trump is against drug pricing. Ultimately he does not think it will be devastating. He likes the industry, but prefers others like Walgreens.
specialty stores
COMMENT
COMMENT
August 27, 2019
American Tower is participating in the 5G evolution in the US. Their problem is being a REIT, it creates all sorts of tax issues for Canadian investors. In the build out of 5G, a lot of smaller towers are required -- not exactly their forte. Crown Castle is probably better in this space.
American Tower is participating in the 5G evolution in the US. Their problem is being a REIT, it creates all sorts of tax issues for Canadian investors. In the build out of 5G, a lot of smaller towers are required -- not exactly their forte. Crown Castle is probably better in this space.
Telecommunications
COMMENT
COMMENT
August 27, 2019
American Tower is participating in the 5G evolution in the US. Their problem is being a REIT, it creates all sorts of tax issues for Canadian investors. In the build out of 5G, a lot of smaller towers are required -- not exactly their forte. Crown Castle is probably better in this space.
American Tower is participating in the 5G evolution in the US. Their problem is being a REIT, it creates all sorts of tax issues for Canadian investors. In the build out of 5G, a lot of smaller towers are required -- not exactly their forte. Crown Castle is probably better in this space.
Business Services
Comments
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