Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
October 29, 2018

This is a tremendous growth \opportunity as they expand internationally more. He watches it. They can raise their rates by $1 per month and easily raise revenues, yetd nobody will unsubscribe. But their multiple is way too high at 108x forward earnings.

Netflix Inc. (NFLX-Q)
October 29, 2018

This is a tremendous growth \opportunity as they expand internationally more. He watches it. They can raise their rates by $1 per month and easily raise revenues, yetd nobody will unsubscribe. But their multiple is way too high at 108x forward earnings.

Don Lato
President, Padlock Investment Management
Price
$284.840
Owned
Unknown
TOP PICK
TOP PICK
October 29, 2018

The best-performing energy stock a year ago, but in July they announced they'd sell their Colombian developmen properties and distributing the cash to shareholders. It's a successful exploration company. They had been generating so much cash flow from their Colombian success that they felt they were being penalized for it, because they couldn't reinvest that cash fast enough. The market took it very negatively. Plus, their August earnings announced a dry well, and triggered more selling. Now, it's one of the worst energy performers. That said, since August they've had two successful well announcements that nobody noticed. Sometimes the market acts irrationally on a stock like this one. Trading at 3.2x cash flow. (Analysts' price target $31.08)

The best-performing energy stock a year ago, but in July they announced they'd sell their Colombian developmen properties and distributing the cash to shareholders. It's a successful exploration company. They had been generating so much cash flow from their Colombian success that they felt they were being penalized for it, because they couldn't reinvest that cash fast enough. The market took it very negatively. Plus, their August earnings announced a dry well, and triggered more selling. Now, it's one of the worst energy performers. That said, since August they've had two successful well announcements that nobody noticed. Sometimes the market acts irrationally on a stock like this one. Trading at 3.2x cash flow. (Analysts' price target $31.08)

Don Lato
President, Padlock Investment Management
Price
$18.420
Owned
Yes
TOP PICK
TOP PICK
October 29, 2018

This is a security blanket in times of volatility. A big, long-time holding for him. Big product and earnings announcements this week. There could be another positive surprise coming. The analysts underestimate the new phones--they could have a good impact on the bottom line. (1.4% dividend, $237.59 price target)

Apple (AAPL-Q)
October 29, 2018

This is a security blanket in times of volatility. A big, long-time holding for him. Big product and earnings announcements this week. There could be another positive surprise coming. The analysts underestimate the new phones--they could have a good impact on the bottom line. (1.4% dividend, $237.59 price target)

Don Lato
President, Padlock Investment Management
Price
$212.240
Owned
Yes
TOP PICK
TOP PICK
October 29, 2018

Has come down with all the auto stocks. BWA has outperformed the industry by a lot in the last quarter. Sales growth of 3% vs. -3%. They're making good advances in hybrids and e-cars. Pays 8x 2019 earnings and has a growing market share while the auto market will recover. (1.7% yield, $49.91 price target)

Borg Warner (BWA-N)
October 29, 2018

Has come down with all the auto stocks. BWA has outperformed the industry by a lot in the last quarter. Sales growth of 3% vs. -3%. They're making good advances in hybrids and e-cars. Pays 8x 2019 earnings and has a growing market share while the auto market will recover. (1.7% yield, $49.91 price target)

Don Lato
President, Padlock Investment Management
Price
$39.560
Owned
Yes
WATCH
WATCH
October 29, 2018

Canadian retailing has been one of the weakest sectors on the TSX. Rising wages is one factor. CTC pays 12x 2019 earnings, so it's still reasiably valued. He's worried about the major acquisition of the skiwear company, Helly Hansen. This is different from Sportchek or Mark's Work Wearhouse. He wants to see how CTC absorbs the skiwear company first. Skiing is a different business for CTC, so he doesn't see the fit.

Canadian retailing has been one of the weakest sectors on the TSX. Rising wages is one factor. CTC pays 12x 2019 earnings, so it's still reasiably valued. He's worried about the major acquisition of the skiwear company, Helly Hansen. This is different from Sportchek or Mark's Work Wearhouse. He wants to see how CTC absorbs the skiwear company first. Skiing is a different business for CTC, so he doesn't see the fit.

Don Lato
President, Padlock Investment Management
Price
$149.710
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
October 29, 2018

(Past Top Pick Nov. 30, 2017, Down 18%) It just hit 52-week lows, but its earnings from fallen from 18x to 13x. ZZZ had a few weak same-store sales in recent quarters, but not disastrous. The retail story isn't sexy compared to, say, cannabis where investors have poured in. They still dominate mattress sales in Canada. Their new ad campaign is pushing accessories which sees revenue growth. There are fears that the mattress-in- a-box companies will compete, but ZZZ also sells a box beds. It's a mystery to him why Sleep has been hammered. A few good quarters will turn it around. You can buy it now.

(Past Top Pick Nov. 30, 2017, Down 18%) It just hit 52-week lows, but its earnings from fallen from 18x to 13x. ZZZ had a few weak same-store sales in recent quarters, but not disastrous. The retail story isn't sexy compared to, say, cannabis where investors have poured in. They still dominate mattress sales in Canada. Their new ad campaign is pushing accessories which sees revenue growth. There are fears that the mattress-in- a-box companies will compete, but ZZZ also sells a box beds. It's a mystery to him why Sleep has been hammered. A few good quarters will turn it around. You can buy it now.

Don Lato
President, Padlock Investment Management
Price
$26.280
Owned
Yes
PAST TOP PICK
PAST TOP PICK
October 29, 2018

(Past Top Pick Nov. 30, 2017,Up 8%) The Amazon fear of taking over this space was unfounded. WBA sales are a little weak, but beat on earnings. Trades at 11x earnings and pays a 2.5% dividend which they've increased 42 years in a row and he expects another in January. A defensive play.

(Past Top Pick Nov. 30, 2017,Up 8%) The Amazon fear of taking over this space was unfounded. WBA sales are a little weak, but beat on earnings. Trades at 11x earnings and pays a 2.5% dividend which they've increased 42 years in a row and he expects another in January. A defensive play.

Don Lato
President, Padlock Investment Management
Price
$76.820
Owned
Yes