Investment Q&A

Q: can you give an up date. can they turn the corner? debt is high, would anybody buy this company ?

Q: I mean this looks far more serious than just the stock going lower for no apparent reason. Seems to me there's trouble in the henhouse. Should we be concerned?

"Mar. 10, 2023, The Capitol Forum reported that prior to Feb. 2023 InMode had not been submitting mandatory reports to the FDA regarding injuries and malfunctions stemming from the use of its devices. The report also observed "a search of personal injury lawsuits filed against InMode over the last several years indicates the company has been aware of dozens more alleged serious injuries that it never reported to the FDA."
Then, on Oct. 12, 2024 The Capitol Forum published another investigative report finding that "far from charging full price for its products, InMode heavily discounts almost every device it sells and expects sales representatives to discount devices anywhere from 16% and 40% off the 'list price[]'" and "[a]ccording to one former salesperson at InMode 'the price is basically whatever the customer can get financing for.'"
These events sent the price of InMode shares sharply lower."

Q: Further to Peter's column in the Financial Post [always good, plain ,common sense advice] I'm wondering what US companies in the health care sector might be considered?
Thanks

Q: As a follow-up to my question last week about this company and based on the news this morning, has the answer changed in terms of it being fine to sell now versus still holding for a little while?

Q: Hello 5i,
We now have a number of shares of Solventum Corp. (as a "reorganization" from 3M) in a Spousal RRSP, soon to be RRIF.
Normally, we are dividend-oriented (retirees looking for income) and as a result I don't know what to make of this little "windfall".
What can you tell us, or what should we know about this equity? What do you think its prospects are for the medium term, 3 - 5 years? Should we keep or sell?
If I understand correctly, it has been placed in the Healthcare sector. I have just asked a previous question (not yet answered) about needing something else in Healthcare beyond our primary holding of HHL. Can you see this as a viable option for us?
Many thanks for any light you can shed on this!!
Cheers,
Mike

Q: Hi Peter and 5i,
Who would you favor for growth over the next 5 years between TCS and Well?
Thanks you for your always awesome feedback.

Q: Please give me your analysis of this company: Roivant (ROIV) and compare it with its peers.

Thank you as always

Q: Hello 5i,
So, retired, dividend-oriented investor looking to add to Healthcare in Canada for a RRIF. Our primary healthcare holding is a full position in HHL, for the yield. P.A. indicates that we are overweight U.S. and need to increase our Canadian holding while healthcare is underweight.
We were considering CSH.UN, but it seems to be classed as a REIT (real estate is also overweight), so that doesn't seem to be an option. The 2 remaining choices seem to be either SIA or EXE, both seeming somewhat problematic.
Since the latest questions I could find on either SIA or EXE date back to last fall, could you update your analysis on these two equities with a view to whether either would be a suitable investment for us and whether the dividends appear safe for the foreseeable future?
And, finally, are there any other suitable Canadian healthcare options that pay a dividend?
Where there is nothing suitable in Canada, my thought was to return to ABBV and suck up the geographical imbalance. Thoughts?

As always, many thanks for your awesome service!!! It is very much appreciated!
Thanks,
Cheers,
Mike

Q: I am thinking of selling my WELL stock for Tax Loss and repurchase after the 30 days. I don't know of a good proxy for WELL so just wondering if you believe this health stock with flat line for a while?

Q: Are these two in the same space and direct competitors?
Also, I'm trying to understand why VHI stock is performing well, while WELL seems to be flat.
Thanks
John

Q: Hi 5i,
I've owned WELL since the fall of 2020, have bought and sold along the way and I'm now left with a few thousand shares and a net loss of 24% in the name. To some extent due to optimistic forecasts from 5i I've thought that enough of a turnaround might be just around the corner to at least get back to even, and perhaps even make some money - but the longer nothing changes the more my optimism wanes. So, a few questions:
A fella on BNN the other day had VHI as a top pick. Are it and WELL competitors and do their respective addressable markets portend growth?,
If you had to choose one over the other now for a 3 year TFSA hold, which would you go with for some CDN healthcare exposure, and why?
Is there another name that you would choose over both of them?
Thanks 5i, I look forward to your thoughts.
Peter

Q: I know it's tricky to evaluate a potential pharma cancer treatment equity but what do you think about this one? It looks like they'll need to dilute massively soon which likely explains my current ~80% paper loss. It's in my TFSA (stupid move on my part as it turns out). Time to take my hit and move on or hope for a miracle?

Q: Your thoughts on this company. At what price would you consider it a speculative buy. Thanks

Q: Hi 5i Team - Could you provide an update on Intellia, its balance sheet including cash on hand for R&D and day-to-day expenses, as well as insider holdings. Could you also comment on its potential over the next couple of years including info on its third stage trials for new technology which targets mutated genes. It was a top pick on today's (Monday's) Market Call. Thanks.

Q: I own Shockwave, which popped following the news that they’re in talks with Johnson & Johnson to be acquired. I know Boston Scientific showed interest last year. There’s no offer yet and I’m not sure of the best course of action at this point. Is it realistic for the stock price to keep climbing? Any general guidance?

Q: what 3 metrics do you use to value ZTS? . please give the forward metric for each criteria versus the 3 year average metric thanks Richard

Q: Could you please compare and contrast CPH and VHI? Looking for key differences or attributes. Is one better than the other, or if starting a new position, would you just allocate funds 50/50?

Q: I own WELL and like its potential. One comment over the past few quarters that I've heard by analysts is that stock based compensation (SBC) keeps increasing and is concerning. For its growth profile, is WELL's SBC a concern to you guys? Obviously getting heavily diluted impacts us shareholders. Just wondering at what level this becomes a red flag. Thx

Q: Opinion Please? Might this be a way to play the weight loss drug trend? Do you have other healthcare suggestions?

Q: Hi 5i, thx again for prompt feedback on my WELL Q's.

Here are a few comments from TD and RBC analysts, both positive, followed by my new Q.

RBC: WELL Health Technologies is well-set to create value, but RBC analyst Douglas Miehm says the market doesn't appreciate it. After a strong 4Q that largely beat expectations, the stock fell about 10% following an unexpected 8% rise on Wednesday in anticipation of 4Q results. In a report, Miehm says that "the market is currently underappreciating the long-term value creation opportunity in "transforming Canadian primary/Dx care, as underscored by our strong forecasted return on invested capital and internal rate metrics for recent acquisitions." He says that there are multiple
tailwinds in Canadian patient services and in diagnostics services to carry it in the longer-term.


TD: WELL Health Technologies shares were down sharply despite reporting better-than-expected earnings in the fourth quarter, but TD Cowen analyst David Kwan says this could be chalked up simply to algorithm trading patterns after the previous day's gains. Shares were down nearly 13% on Thursday to C$3.71 after reporting higher 4Q profit, a revenue beat and upgraded its outlook for the year. On Wednesday, shares rose 8%, and Kwan said Thursday's swing could be trading patterns playing out. "This could be a case of more algo-driven trading patterns," he said.

My Q: please expand on how impactful these "algo-driven" trading patterns are on stocks, especially small caps. Thx.