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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi
I own a 2% position in teva pharmaceuticals. It is down nearly 60%. You have recommended selling the stock in a response to a somular question yesterday. My problem is I am holding this in an RRSP and cannot take advantage of a tax loss. I am comfortable holding for a few years in the hopes of a rebound, collecting the dividend meanwhile. Do you think this is wishful thinking?

Do I cut my losses, or do I wait patiently for a possible recovery?

Thank you
Karim
Read Answer Asked by Karim on August 10, 2017
Q: The recent hand wringing (and rightly) over CRH (haven't owned for years) has made me question what rationale retail investors use to buy and sell. I understand why advisors suggest a buy and hold strategy. But can't understand why retail investors need to be tied to that philosophy. I'm making a leap and will assume most members of this site use a discount brokerage. Given the almost insignificant cost to buy and sell (assuming buys and sells of more than $10,000), isn't a more active approach to trading a reasonable proposition? I use technicals to take the emotion out of the equation and would love to know what buy and sell discipline you would suggest. Having personal buy/sell rules might help investors feel better about making these decisions.
Thanks for all your support and advice over the years.
Read Answer Asked by Kyle on August 08, 2017
Q: Hi,

I think the payor mix and reimbursement changes are the largest risk to this company. Assuming much more margin pressure, using very conservative estimates, my DCF model points to a higher value then current share price. Their products and services are essential and I can’t foresee a substitute. Am I missing something? Do you guys see any major long-term trends that could threaten their business model?
I have a long-term outlook (5 years out) and can handle volatility. Would you say the probabilities of a double from today's share price in 5 years is high?

Thanks,
R
Read Answer Asked by Ramin on August 04, 2017