Investment Q&A

Q: Although I am using CRH in the heading this question is really applicable to any number of situations where a share price drops on an analyst's "downgrade", especially when there is no material news on the company e.g. - management malfeasance, loss of a contract etc.

I am not particularly concerned here about the company's future and fully expect the share price to go back to where it was relatively soon, especially in light of the fact that the target price is higher that what it was trading at and that the consensus price is much lower that the new target.


But I am left wondering why this or any other stock would have dropped so much. Is it because it was an RBC analyst and as a matter of course, all RBC brokers are instructed to put in sell orders (their clients are probably all up given the recent share price increases) to show clients the value of their firm's research (and then start buying it back when the price drops) or are there trading programs that always sell on downgrades or is this a particularly "good" analyst with a wide following or am I just being too cynical?

As I said, this isn't just about CRH and RBC. Or is every situation so different that you can't generalize and this is just "noise" that should be taken with a grain of salt?

Appreciate your insight?

Paul F.

Q: Hello Folks:
In reading your answers to previous questions on GILD you recommend the company for it's strong cash position and low valuation, but recommend having the patience of a 2 year outlook. I have owned GILD for several years and not done very well as of late. Being I am 70 yrs. old should I hang in with GILD or move into another health related company? I have a full position with Johnson & Johnson, but am unaware of other very good health care options. I am not a frequent trader, tending to hold mostly American blue-chip companies,and welcome your advice...I greatly appreciate your good service!
brian

Q: Can you shed any light on the huge drop in CRH this morning? Thanks

Q: CRH is down about 10% today, but I can't find any news. Do you know why it is down today? Have any of the brokers dropped their target price or rating?

Thanks

Q: Good afternoon,

Eli Lilly has fallen by nearly 20% in two days after its phase 3 trial Alzheimer's flopped. Do you think there is a good buying opportunity here? Would you step in?

Thx,

KR

Q: Do you think CRH has risen too quickly recently and is a sell candidate? I note that the 3 month return is 75% without a lot of news. I have owned the stock since the $3 level and I am talking myself into selling. I recall the Auto Canada, Badger and Patient Home Monitoring debacles and this feels similar. Too well liked, excessive momentum.

Q: Could you give us your latest opinion of mph and their latest acquisition.

Q: Which of these ETFs would you prefer for a TFSA, XHC or ZUH?

Thanks

Q: I would like to invest in 11 ETFs that track the TSX's 11 sectors. Are there individual ETFs for each of the TSX's 11 sectors. If so what ETFs for each sector would you recommend. Thanks ... Cal

Q: Hi,

I am holding RBC Life Science and Tech mutual fund (RBF1030)which is a nice mix of U.S. technology and health care stocks.
What would be a good ETF to replace it or, alternatively, which stocks combination would replace it advantageously ?

Thanks again for your exceptional service,

Jacques

Q: Hi, What ever happened to MDT? It dropped a lot today. Still a good company?

Q: Could you please provide about 10 fundamental parameters to search out a potential US stock for me to buy in healthcare sector. I am looking at ABC and CVS, but want to be sure I am looking at the right things to judge them. I would purchase these in a non-registered US dollar account so no currency conversion issues. Many thanks always,
Marilyn

Q: For health care stocks I look outside Canada. Is there anything in particular one should look for in these? I view them differently due to the long process to bring a drug to market and potential law suits etc.

Any thoughts on whey a recent downturn in this sector?

I am considering purchasing Cardinal Health.

Many Thanks

Paul

Q: CVS has dropped significantly in recent months, and I'd appreciate it if you could explain what has been going on. What future do you see for CVS?

Q: Do you have an opinion on this company? Is it pure speculation at this point?

Q: I have held Novartis for a few years and still show a profit of ~33%. However it has dropped significantly in the last 18 months. In the pharma space, I also hold Knight Therapeutic (GUD) and Johnson & Johnson (JNJ). I wonder if Novartis is still worth keeping or should I consider switching to something else (or increasing my holding in J&J or GUD). It represents ~1% of my portfolio which is well diversified but light on pharma. Although not your primary field of expertise, I would still appreciate any light you could shed on the company. Thank you for your valuable insights.

Q: How do you interpret the announcement the company made today on one of their products?

Is this just a pop or a longer term effect?

Thanks

Sheldon

Q: I'm considering buying some GILD.My portfolio is all CDN stocks so it should benefit from some diversification and I feel US stocks may gain some strength under Trump.Obviously GILD is very cheap which reminds me a little of Concordia when I bought what I thought was an undervalued health care stock only to watch it nose dive.I also noticed a few reputable investment firms loading up over the last 2 months.My other choice was to buy PBH which is a great company but very expensive.What are your thoughts on a very cheap GILD which adds some diversification vs a fairly expensive PBH which is currently performing much better? I find i'm more of a GARP than a value investor but I appreciate getting a great stock on sale.

Q: Could you please provide an updated opinion on Merus. Stock is up 5% today. Do you consider this a buy or am I best to stick with GUD and SIS and forget about MSL.

Q: Would appreciate your review of 3rd quarter results and the company announcements.
John