Investment Q&A

Q: Canadian Regulators are concerned about bans that cxr has imposed on the resale of their shares 14% stake to private-equity firm Cinven, who inturn resold to 60 activist firms.
Going forward will this effect the future stock performance
Thanks as usual.

Q: Between CXR or GUD for a full new position, what would you recommend? Thanks

Q: Can I please have your candid and honest opinion on the following which I came across recently

"Concordia Healthcare Corp. has essentially been forced to turn its entire business model on its head, according to a Bay Street analyst.
Up until September, the Oakville, Ont.-based pharmaceuticals company built its business by making a series of acquisitions that bumped up profit and revenue – in much the same way Valeant Pharmaceuticals International Inc. did. That formerly successful strategy is now in serious doubt.
“The re-valuing of the sector, coupled with Concordia’s substantial debt load, probably means the end of its financial arbitrage as a means to continue its non-organic [growth] for the foreseeable future” Doug Cooper, an analyst with Beacon Securities, wrote in a recent note to clients.
Concordia’s heavy debt burden stems from its recently completed $2.1-billion (U.S.) acquisition of Amdipharm Mercury Co. Ltd. (AMCo). Concordia was forced to fund a higher portion of the acquisition than planned with debt as opposed to equity. Only $520-million came from an equity increase. The firm had the rotten luck of conducting an equity financing smack in the middle of a stock market storm in the pharma sector. In an interview with The Globe and Mail last month, Mark Thompson, chief executive officer of Concordia, confirmed that the firm didn’t raise as much equity as it had hoped and was forced to make up the shortfall with debt.
“This [heavy debt load] has forced the company to change its strategy from a ‘growth-through-acquisition’ story to purely an internal growth story, driven by the new product launches at AMCo. ... With no imminent acquisition catalysts, we believe the shares will be range bound.”
Mr. Thompson told The Globe that the only acquisitions the firm will consider for the foreseeable future will be small, so called “tuck-in” acquisitions."

I have a current 6% position and considering some tax loss strategy. I reviewed you blog posting
Thanks

Q: Could you please provide an update on CTH and comment whether an early stage investment would be more appropriate in CTH verses GUD.
Many thanks, Nancy

Q: Pfizer is planning to merge with Allergen & move head office to Dublin ---Inversion Tax laws in US --come into play . Question ---How likely this will occur & do you think it will affect the deal & stk $
Thanks ---don

Q: Could you please comment on Prometic's earnings release?
Thank you, Peter

Q: Tst had a great run last week. Do u think it will go further?
Thank u very much

Q: Is CRH cheap relative to its peers? Do you think now is a good time to buy? What is the forward P/E?

Q: Hello,

I am a relatively new member. Love the service. I own a small amount of QHR Corp. I am down about 20%. Your thoughts on this as a long term hold please.

Q: Hello 5i,

Could you please shed some light on PHM's next earnings release and what are the estimates for revenue & EBITDA? Back in August, there were some talks about 3 or 4 outstanding LOIs, do you have any update on the status of these LOIs?

Thank you

Q: Any thoughts on the delay in reporting. Seems like incredibly bad timing.

Slainte, Irishyork

Q: Hello,

We would like to buy a healthcare stock and are considering ENL , CXR and GUD.
Which one would you prefer at this time for a 5 year hold period.

Thank you

Q: Hey Peter & Team,

Trying to get a handle on Merus. I bought a full position @ $1.94 in Jan 2015. Sold 50% at $3.26 in July. Today it is trading @ $1.55.

The street sentiments appear to be fluctuating quite a bit... Early Oct it carried a Strong Buy recommendation from multiple sources with target prices ranging between $3.25 & $4.25. 3 weeks later Mackie & Scotia reduced their targets from $4.25 - $2.70.

Are you able to shed any light on MSL and what we could expect moving forward?

Thanks for all you do

Gord

Q: PHM continues to hit new lows. Is it time to double down, stay the course or to cut losses? I took a position earlier this year for the speculative part of my portfolio.

Q: Thoughts on CXR's Q3 and guidance?

http://finance.yahoo.com/news/concordia-healthcare-announces-third-quarter-220000345.html

Q: Hi Peter & team,
I have nothing in healthcare and would like to initiate a 5% position in my RRIF. Is XCR too risky for the moment? How about GUD? Maybe 2.5% in each? Thanks

Q: Please comment what do you think the market reaction would be to their announcement of delay in financials and preliminary results. Thanks

Q: Hey Peter & Team,

Caveat... It's a US company so I appreciate if you are not prepared to answer but considering the Canadian market right now, the US is where we need to be until O&G starts to return to it's old self.

In Feb 2014 I inquired about MCK and you replied with;

"solid blue chip company in the health care space. At 20 times' earnings it is not cheap (after a 70% one year gain) but we note a strong balance sheet, good revenue growth and solid earnings growth."

At the time it was at $176.50. May of this year it peaked at $240.61. As of today with the healthcare sector getting hit in the last 6 months it's around $182.00 which is the lowest it has been since May 2014.

It has a reasonable and very sustainable dividend. Guidance continues to be excellent on both the top and bottom, and they just announced a $2BB share buy-back program.

It appears to me this equity is considerably cheaper than it was back in Feb 2014 when it was $170/sh, and I am having a tough time finding reasons why we shouldn't expect this stock to bounce back over the $200 mark in the very near future.

Am I missing anything? Not aware of something? What is your opinion of its recent report and do you still consider it as expensive as it was in Feb 2014? Finally, do you think I should buy or hold?

Yours Truly

Gun Shy Gord

ps... thanks for all you do

Q: In my RRSP Account, my Patient Home Monitoring position is down 60%, I'm considering selling it and adding to my 2.5 weighting in Concordia which I purchased this week. If I proceed, I'd have a 4% weight in CXR. I'd appreciate 5i's opinion to make the switch or hold PHM or a few more quarters?

Q: Can you comment on the recent earnings release? Also what do you think of the company going forward?