The Lato Letter

The Lato Letter

Volume 1, Issue 1

What better day than today to post the first blog entry on the Padlock Investment Management website.

After trading higher in the pre-market, Apple closed the day at $446.66 or up 6.24%. Take what you like from the fact that the last three digits of today’s closing price were “666”, which also happened to be the market-bottom March 2009 low on the S&P 500 index, and the market-bottom November 2011 low on the Russell 2000 index, the results reported yesterday were wickedly outstanding results.  As good as I thought the results could be, I never dreamed that the results would be that good.  For a review of the results click on today’s Wall Street Journal story.

In spite of the 6.24% increase today, Apple remains a cheap stock and the largest holding in the portfolios.  Notwithstanding that I believe that there is further upside in Apple beyond today’s levels, I did trim portfolios today simply because the weight of Apple in most portfolios had simply risen too high.

The proceeds were used to establish a position in a Canadian oil and gas company called Parex Resources (PXT on the TSX).  Parex is a fast-growing international exploration and development company with land holdings and production in Colombia and Trinidad.  Parex boasts a strong management and significant development potential over the next few years.

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