Investment Q&A

Q: Would you please give your opinion on these healthcare equities.

Q: Of these two healthcare companies, which do you prefer? WCG dropped a lot in the recent sell off whereas CNC did not? I do own UNH but I'm looking for another for a long term hold?

Q: I am aware that these companies have high debt levels. However, would you view any one of them investable? Or would there be similar companies with better growth prospects?
Thanks for your input!

Q: Aside from JNJ, my US portfolio has no healthcare/biotech stocks. How would you assess these two companies?
Thank you, Team!

P.S. The BNN presentation was very informative!

Q: Hello Peter,
With the cannabis stocks trading 50% below the legalization date, I would have thought any big companies that wanted to take an equity position in cannabis companies like Canntrust , Aphria, etc would have done it by now. Any thoughts on this? Also, I am starting to wonder if Knight is worth letting go now. This looks like a 30 year timeframe stock the way it is going... Appreciate the comments

Q: What are your thoughts on CRH at this time. It has moved up in the last few days. Is it too rich? What do you think of it's turn around? Do you think it has a chance to reach $6+? Would any of you buy into this or is just "OK"?

Thanks for your help,
Stephen

Q: My biggest position is in Knight and my two biggest concerns are the possibility that Mr. Goodman's health is deteriorating following his accident which could affect his zeal for a large deal and, second, if his reputation as a bargain-hunter is precluding him from having access to good deals as sellers may only view him as a desperate last resort.
Finally, the trading in this stock seems consumed by day traders generating a flurry of orders following the limited buy/sell from real investors. Is someone propping this stock up to generate action while the shareholder base yawns through the daily action waiting with exasperation for the company to put their $800M to WORK!!
Thank you.

Q: I was wondering your opinion about Cypher Pharmaceuticals and Centric Health Care. Would you buy either of these and could you give an explanation, thanks
Mary

Q: ILUVIEN approval for GUD. How big a deal is this. I noticed on the Globe and Mail GUD was proposed as a small cap to watch. I don<t know how important this deal is. But, i see it didn<t affect the stock price much.
thanks for the great service

Q: ..how do you view Antibe's latest results? thanks.

Q: What are your thoughts on AMRN? Would you recommend buying at this time?

Q: Thank you again for this excellent service. I have a question about Savaria. In their most recent quarterly results, for the 9 months ended September 2018, stock-based compensation is $899K on $12.9M income. If I have done my calculation correctly, the stock-based compensation is about 7% of expenses. I do not know how to find the base salaries for the management (which would presumably further increase the management cost for the firm).
Is this not a lot excessive? Should I be concerned about the "cost" of management and how this cost could dilute shares or profits?
Thank-you

Q: Any idea why the big drop in Biosyent this week. Also thoughts on their Q3 results
Thanks
Don

Q: I Have held Knight Therapeutics (GUD.TO) in my Granddaughter's trust account for a number of years, but sold today with the jump in price for a small profit. I'M am now looking for a stock in the Health Care sector to replace it, preferably one that pays a dividend.
Would you be comfortable with Savaria (SIS.TO) for a 3-4 year hold? Could you recommend one or two others? Many thanks

Q: You wonder how many people would actually be up on this name as many got shares from the spin off from PHM which they could be down on as I am.

Q: Just a comment... your system shows a 2019 EPS estimate of $0.72 for Savaria. I think that makes the forward P/E closer to 18 (you said 28 in a q&a today)

Q: Hi 5i,

Looking at pulling the trigger on a handful of Canadian stocks that've gotten beaten up lately to round out the Canadian portion of my portfolio.

I love a number of your recommendations. The one I seem to be struggling with the most is Savaria. P/E seems so high, its like it trades as a growth tech stock. In another question you indicated its forward P/E is 28.5 even with the recent correction.

So I guess my question is whether the confidence is still high for this pick? In a world where other Industrials like Magna and Linamar trade at such low multiples, does SIS really deserve the premium?

Thanks!

Ryan

Q: What are your thoughts on NEO at the current price, having dropped after missing one quarter even though they have been beating estimates in prior quarters?

Q: As a retired person I am always looking for high yield investments.
So I look at something like HHL from Harvest. It holds 20 equal weighted mainly US healthcare stocks. A solid sector with good long term demographics. I see their current yield on what they are paying out is 8.67% - all capital gains - great! But I see the average dividend yield on the stocks held is only 1.96%. How can that be? Seems it’s done using covered calls Not sure how that works but sounds like it creates added risk. What if the covered call $ generated isn’t enough to meet their intended distribution? Where does the extra $ go if covered call exceeds the distribution.

So I investigate the industry a little more and I see words like- total return swap based, inverse, currency hedged, low/ high volatility, fund of funds, proprietary methodology, 2x returns etc., and I start to wonder what’s going on?

Then I remember the term “ flow through shares” of some time ago and say to myself “ it’s déjà vu all over again.

Derek

Q: What do you think about yesterday's high volume decline? I have read the company statment after the halt. I have had some bad luck over the last 2 months and it seems everyday I get crushed with another big hit. I am still following my plan and am still fully invested in a balanced portfolio from your coverage list. Should i switch out vmd for a better name or hold?
Ty!