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On last night’s appearance on BNN’s Headline and the Top One segment, I featured Tourmaline Oil Corp. (TOU-TSX, $54.60) as my Top One in the Canadian market. Here’s a link to the segment in case you missed it. Tourmaline Oil is a bit of a misnomer since 85% of its production is natural gas. The company was created in the fall of 2008 with equity capital of $300 million, went public in the fall of 2010 at an equity value of around $3.0B and is now valued at just over $11.0B; but the growth is far from over. Tourmaline has a tremendous management team led by Mike Rose, an incredible land base with the largest land position in the Deep Basin, thousands of drilling locations in its future and cash flow and free cash flow that is ready to explode. The chart below shows a company estimate of 120,000 boe/day of production this...

Normally April 30th (this year actually May 5th) marks the deadline for filing the necessary documents to complete your personal income tax return. Things are a little different this year and there has been a great degree of confusion regarding the form that makes it different. The form I am referring to is called a T1135, a Foreign Income Verification Statement, and it must be completed by anyone holding greater than $100,000 of foreign investments. Before I discuss this form, let me be perfectly clear that I am NOT giving tax advice and that you should contact your tax advisor or the Canada Revenue Agency (CRA) with any questions or decisions regarding this form. Back in January, I wrote to my clients that those clients owning more than the $100,000 limit of foreign investments must complete the T1135 by April 30th and the T1135 information requested at that time was extremely cumbersome...

The following is an expanded version of my post-Market Call Tonight appearance write-up that will appear in the online version of the Report on Business on April 11, 2014. Market Overview In spite of the recent volatility in the equity markets, Padlock remains constructive for the balance of the year. After a very strong year last year for equities, investors should expect more muted but positive returns for the balance of the year. Valuations remain favourable, as do monetary conditions. It may be five years from the market bottom but overall equity market conditions do not suggest a market top but rather the continuation of a long term secular bull market. These views will be expanded in the Spring Quarterly issue of The Lato Letter that will be sent out next week. Apple Inc. (AAPL-NASDAQ, $523.48) Apple’s valuation continues to be compelling as the stock is held back by the market’s desire for new...

I have mentioned my wife Virginia’s fashion business in previous issues of The Lato Letter and so I thought I would share a little press that she received today in the fashion section of The Toronto Star. Enjoy reading. Stealth Shopper: Yes Virginia majors in luxurious leathers By-appointment-only shop owner Virgina Lato offers chic, elegant merchandise to the over-35 set from her homey location in Rosedale. Yes Virginia, an appointment-only retailer in the lower level of a Rosedale house, is both comfy and discreet, Rita Zekas writes. By: Rita Zekas Special to the Star, Published on Wed Mar 05 2014 Yes Virginia, 44 Gibson St. Intimidation factor: Minimal. The shop is chic but homey, only fitting considering it is in the lower level of a Rosedale house. Number of salespeople on floor: Three, owner Virginia Lato and two associates. Response time: Immediate. Lato offers me a cappuccino, water, tea...

We investors may have been a bit spoiled after an outstanding year in 2013. January greeted us with some volatility and weakness. Discussions about the fabled January Indicator began to ensue. The common perception is that the price action in January sets the tone for the remainder of the year. Statistically, that is indeed the case when considering all years from 1901 to 2013, with up Januarys leading to a 9% return and down Januarys leading to a 1% return for the next 11 months. An excellent report from JP Morgan’s strategist Thomas Lee last week dug deeper into the numbers and the highlights are shown in the text and charts shown below. Lee’s work shows that the January effect is muted when the market is already in a bull market as we are in early 2014. January’s price action does have an impact but historically up Januarys in bull markets have...

It has been a rough couple of days in the markets with one of the sighted culprits being the rapid decline of the Argentine peso. Ironically, I will be spending the next three weeks in Argentina and hope to provide some insight while I am there. In the interim, if the weather and the markets are giving you a bit of a chill, I thought I would try to warm things up a bit by sharing Carl Icahn’s letter to Apple shareholders. Apple’s keenly anticipated results are scheduled to be released after the market close on Monday and I have many reasons to believe that they will be great. Here’s the letter and watch for those results: NEW YORK, Jan. 23, 2014 /PRNewswire/ VOTE “FOR” PROPOSAL NO. 10 CARL C. ICAHN 767 Fifth Avenue, 47th Floor New York, New York 10153 January 23, 2014 Dear Fellow Apple Shareholders, Over the course of my long career as an investor...

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