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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: Gentlemen:
Sorry for another in the string of CXR questions. Early last June, Blackstone and Carlyle dropped their bid for CXR when the shares were selling in the $36.00 range. Considering that the shares have crashed since the acquisition of Amdipharm, can you see a company such as Knight GUD making a bid? They have a strong seasoned management team and have had some financial involvement with the firm. Debt apparently does not come due for another 4 or 5 years.
Thank you
Read Answer Asked by Martin on August 18, 2016
Q: Hi 5i - even with all the problems at Valeant, it looks like it has a higher PE than CXR? For an investor willing to accept risk, is staying in CXR a decent decision? Im looking at the revised guidance and earnings and even with the lower expectations, it is expected to make big earnings and seems to be a very cheap stock. Thanks, Neil
Read Answer Asked by Neil on August 17, 2016
Q: from p hodson moments ago.......

"Unfortunately we think too many investors are playing individual stocks and not following a portfolio approach"

bingo!

if you have a balanced portfolio, you hold 25 individual stocks averaging 2 - 5% each

on a 500k portfolio, if you had 5% in CXR and bought at the peak ($117) and sold today at $12.17 you would have lost $22,500 (ish)

on an absolute basis $22,500 hurts, yet a portfolio loss of 4.5% is nothing

even with this loss, chances are some of the other 24 issues were up and you clipped a few divvies and likely your portfolio is flat to + 3 - 4% ytd

yet people are greedy and contrary to accepted wisdom want to
over buy the most risky of assets

and then 'double down' to 'get back my money'.....

5I is not a baby sitting service; sometimes you must put on your big boy panties and learn to read a chart or at a minimum institute a system which will allow you to cut your losses

history repeats again and again and yet again

don't look now but the north American equity markets are at all time highs and sitting on deflating earnings and increasingly lower breadth......

maybe 4.5% was a gift; a wake up call as it were

cheers
Read Answer Asked by Robert on August 16, 2016
Q: I should have dumped CXR immediately after receiving your email on Friday, but incorrectly assumed that the 20% drop at the time was as bad as it would get and that I would just wait until I made some other portfolio tweaks next quarter.

I've decided that I am going to replace CXR with BIIB. Would I be best to do this immediately or wait another quarter? Can CXR really go any lower? Perhaps it will get a bounce and outperform BIIB in the short term as value investors move in?
Read Answer Asked by Andrew on August 16, 2016
Q: I am still invested in CXR.
1) Is CXR going to be bankrupt, or what is the probability of it happening.
2) The current prices are too cheap for a company that has a decent revenues. Missing a quarter earnings and a lower forecast for 2016 is not something that hasn't happened before. I see a reason to be invested in it for say another 2 yrs. Is that reasonable.
3) Is there a thesis to hold rather than selling off now.
Read Answer Asked by Vinod on August 15, 2016
Q: Please help me to understand that if 5I doesn t have any more intel on company management than that of the avg investor,what is the benifit of membership?
I, like so many others in this forum have been ambushed with the recent developments and incurred losses leaving me disillusioned
with 5 I research.
I really thought that with 5 i"s connections to the market they had more insight,(cxr hasn't been the only surprise)
Please understand I am not blaming 5i for this,it was my decision at the end of the day. I just don't see the benifits of renewing my membership.

Thank you for the education.
Read Answer Asked by ron on August 15, 2016
Q: With the devastating losses I’ve suffered on CXR (-85%) and PHM (-80%) my holdings in the healthcare sector are down to 5%. I was considering purchasing some IBB to bring it up a bit. After my experience with CXR and PHM I’ve become a bit worried about owning individual healthcare names and am now feeling more inclined to want the safety and diversification of an ETF. How do you feel about IBB or do you have any other suggestions? I already own GUD, SIS, and XLV.
Read Answer Asked by Steven on August 15, 2016
Q: It is easy to fault advisors when things go south but they are only making decisions based on the information given to them and trusting the source of that information. I got burnt on PHM and many very honest and reputable advisors such as Peter and Jason Donneville were believers also. CXR is EXACTLY the same. The events which unfolded at these two companies should prove to us that above all else the number one metric in evaluating a public traded company must be the Quality And Integrity Of Management. When any critic corners that one, let me know, please
Read Answer Asked by Clarence on August 15, 2016