Investment Q&A

Q: Jean-Coutu has fell 15% since yesterday because the governement will effectively make generic drugs cheaper. This is a huge part of Jean-Coutu's business. Could you discuss the impact on the company? (1) Considering the extent of the impact on their future revenues, how much do you think the stock could contract? Technically, there is some support at 15$. (2) If you were close to retirement, who you buy? I like the nature of the business, 2.5% dividend and the dividend growth history. However I don't want to see the stock fall another 15%. (3) Insiders were buying a lot at 19$ very recently, they must have known about the possibility of this happenning? Thank you team.
http://www.bloomberg.com/news/articles/2015-11-26/jean-coutu-slumps-most-in-7-years-on-proposed-quebec-drug-reform

Q: Peter and team: Currently holding Phm and GUD, (3%) of my portfolio.. I have thought of adding Concordia CXR, but am open to other names. Any suggestions?

Q: Hello Peter & Team, in your response to a recent question about Merck versus BMY, you refer to the Valuation of Merck. What does Valuation mean? How do you define Valuation? You say that MRK valuation is about half the valuation of BMY, and has much more debt than BMY. Still, you prefer Merck. Thanks, Gervais

Q: Good Afternoon Peter, Ryan, and Team,
My question is with regard to insider ownership at Savaria. According to the recent Ink Insider Report on SIS the CEO and CFO own approximately 30 million out of a total of 32.55 million shares outstanding. This means that the total public float is about 2.55 million shares or less. Could you verify if this actually true ??
Thank you. DL

Q: Could you advise when they will release the third quarter results.

Thanks

Q: Nobilis has deferred the issue of their quarterly financial statements again. They have indicated that the delay related to their auditors and that they did not believe that any adjustments would be material. I listened to their conference call several weeks ago and at that time their explanation for potential adjustments and their affect made me think that they were probably immaterial to their results and consequently could be ignored. But this later announcement has me concerned. What do you think. Thanks
Mike

Q: Good afternoon,
I am currently up 60% on Prometic Life and not sure if I will be seeing anymore growth out of them. Should I continue to hold or sell? Thanks

Q: CRH Medical announces they have secured a $33M revolving line of credit with Bank of Nova Scotia at 2.5-3% and are using the funds to repay loans from Knight Therapeutics $22M and Bloom Burton Healthcare $2M that had interest rates of 10-12% with a resulting estimated savings in finance expenses of $2.5M. Good news. The company has said they will use the balance of funds for future acquisitions. Do you expect an acquisition will occur before year end and would the asset to be acquired be in the US? Thanks

Q: I would like to send a thanks to Michael for providing insight into Inspira's reimbursement protocol, following my recent question. I appreciate the information.
Thanks.

Q: Hello 5i Team,

I hold BMY with a very nice dividend/gain, but notice that you seem to favour MRK. May I have your comparison of the two companies? I'm thinking of switching some money from BMY to MRK..... or maybe putting it all on NVO?

Thank you again for all your advice.

Thank you again for the advice.

Q: Hi 5i Team,

This is just a comment about today's market 6% decline. The Wall Street Journal published a scathing article today about drug makers who don't spend any money and on R&D and sky-rocket drug prices. In my opinion Concordia was unfairly criticized in the article as as being one of the worst offenders.

Thanks, Shane

Q: Hello Peter
I own Alergan stock and Pfizer & Alergan announced today 160 billion merger

The deal values Allergan at $363.63 per share, about 30% more than its price when reports of a deal first surfaced last month.

Allergan shareholders will get 11.3 shares of the new company for each of their shares. Pfizer shareholders will get one share of the new company’s stock for each of their shares.

After completion of the deal, which must be approved by U.S. and European regulators, Pfizer shareholders would own 56% of the combined company.
My question is what should I do with my shares, sell or wait for closing of the deal and what is good and what is bad in this deal for me as a shareholder.

Regards Andrew B.

Q: Down on this one. Worthwhile keeping? Or selling and investing in equal amounts in SAVARIA, SENSIO, CONVALO and INSPIRA.
Like so many subscribers, appreciate your service and will renew
my membership for 2 years.
Thanks, Klaus

Q: In response to my inquiry about Inspira's loan payments, Michael indicated they come from the US Government. Does he know if they come directly to Inspira, assigned by the borrowing Doctor, or do they go to the Doctor directly who then remits to Inspira?
Thanks for the info.
Steven

Q: Hello Peter,
Other than positive comments on BNN, what is driving the stock prices higher everyday this week for crh medical, constellation software, and patient home monitoring. Do you think investors are just using BNN as a trading vehicle for stocks as opposed to looking at long term ? Also if you had prioritize your investments between constellation, Eng house and CGI group, how would you rate those? I was thinking 5% weight for constellation, 5% for Eng house , and 2 percent for CGI group. Please provide your view. Thanks again.

Q: TRX took a nose dive today on no reported news that I could find. There is talk of a new inversion law possibly in the US. Pozen the co. TRX is merging with had an up day today. Could you explain to me how this is unfolding. Thanks

Q: Over 9 million shares sold Friday, institutions stepping back in?

You figure institutional selling is all but over?

Cam

Q: It is my understanding that most of the payments to inspira will be from insurance co. or obamacare. So little risk. On bnn yesterday you were talking about savaria and said the you do not officially cover the co. I do not really understand how it can be in the portfolio if it is not properly researched ie covered

Q: I completely understand Inspira is early stages and risky. There are three potential hurdles that I don't completely understand:
1) Do they attach some sort of lien on the payments due to the lending Doctors from the US Government?
2) If not, and they have defaults, would that influence their bankers with regard to amounts loaned and would they have to borrow at higher rates or would the banks eventually cut them off?
3) What are the odds of a policy change by the Government to pay quicker and eliminate the need for Doctors' borrowing?
Finally, how would you value this company proportionate to their loan book?
May I add my vote of confidence for your service which is prompted by some negative comments. Members get 24 questions directly to two seasoned portfolio managers with no conflict with the companies they discuss. That's about $5 per question! No one is perfect but if members listen to the message, which is diversify, remember why you bought the company (hopefully, not because "Peter said so"), don't panic and stick (mostly) to quality, growing companies, you will make money over time. I still can't believe I can ask these questions for $5!! I have paid as much as $900 per year for some sites and they won't even talk to you. 5i is worth multiples of what they charge.
Thanks for letting me say this.
Steven

Q: Hello,
My first question.
Why are these healthcare related stocks, mostly doing business in the U.S., with home offices in California, listed on the Vancouver venture exchange?
thanks, Len