Investment Q&A

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?

Q: No questions on this one since Feb 2014. I note your concerns expressed at that time. While still not much in the way of financial results, I cannot help but wonder why Clive Beddoe would assume the role of chairman of the board (April 2015). I also note Wilmot Mathews, also on the board of WestJet, is a board member. You wouldn't think that these guys would get involved with a 25m market cap company unless they saw something in it. Your thoughts would be appreciated.

Q: Greetings: I still hold ENL from back in the Paladin days. It and Knight (GUD) make up about 3% each of my portfolio. Endo's quarterly statement seemed fairly positive to me, but the stock dropped significantly. Is it in the same boat as Concordia and Valeant. In other words, should I continue to hold it, or is there some problem. If you say it is similar to Concordia, I will probably just keep it. Thanks, as always, for valued opinion.

Q: PLI has had some positive news lately and stock seems to be responding well. Do you think the news supports the current value and would you recommend it as a buy at current levels.
Thanks
John

Q: Before I logged into my account I was reading an article by Ryan about Concordia and half way through it, it said to read the rest or to read articles like this join 5i Research. I am a member so where would I find the rest of this article? I have a 200 shares at higher prices and I was thinking of averaging down to buy at between $38 and $40. Is that a good idea and where would I find the rest of this article on CXR? Thanks for keeping us posted on this situation. Dennis

Q: Just a comment as it appears some folks are still buying. How does this Enron style Co. justify financial statements listing
over 17B in Goodwill & Net Intangibles over 22B! Why, this puts them in the same value class as Johnson & Johnson. REALLY!

Q: who is right the long or shorts on valeant
is it a buy under todays price drop

Q: I am still holding PHM . Is there any hope in the near future for this stock or should I sell it?
Margita

Q: I have had a very steep roller coaster ride (mostly down) with NHC and am currently out of it. Having just watched the interview on BNN with the CEO Chris Llyod and the announcement of the $300 M lawsuit, I am considering taking a position in NHC yet again. Do you see any merit in the lawsuit; and if you watched the interview or read reports of the NHC response: would any of this provide you with sufficient reason to buy the stock. Thanks.

Q: I am a retired, mostly conservative dividend-income investor with a pension, CPP and annuities. My asset mix is 65% equities and 35% fixed income. My holdings include AD, ALA, AQN, BNS, BCE, CGX, CPG, PBH, RY, SLF, WCP, WEF, WSP, ZLB, XIT and Sentry Cdn Income, Sentry REIT, TD Health, RBC Cdn Equity Income.

Within my equity portfolio, my tech exposure is 8% with 3/4 of that being XIT. Seasonality is in its favor right now.

Within my equity portfolio, my healthcare exposure is 4%, with 3/4 of that being TD Health. Bad current news environment and bad seasonality, but beaten down.

I am interested in topping up either XIT or TDB976. Which one is more conservative, could use the topping up and has the most upside?

Thanks,
Steve

Q: Would appreciate your take on earnings announced today. Would you continue to hold for projected recovery?
Thanks

Q: I would like to increase my Health Care section - right now I only hold GUD. Looking for help in finding something fairly solid with a moderate growth record and reasonable divi and not subject to being affected by stuff like the recent Valeant thingy. Thx guys.

Q: Hi Peter, At first I want to say that I did not listen to your advice on portfolio diversification and allocated 25% of my portfolio to Concordia by averaging down when it was going down. My average cost is CAD$44. I am now down 18% as CXR is down 8% today. I am very uncomfortable with this, I have other 46 stocks having 75% of my portfolio(most of them from your growth and balance portfolio) and then I have CXR which is 25% of my portfolio. Question to you is this: 1. Do you know why it is down today(could not find any news or downgrade)? 2. Is there any catalyst coming(except quarterly result on 10th November) 3. I see its volume is below average last couple of days, do you think professional money manager will buy this name again? Or how and why the price going to go up? 4. How do you want me unwind the position, I don't want to sell now as I am 18% down, should I sell when the price comes back up to my average cost? 5. I read the report by Ryan and all other analyst reports on CXR and it convinced me that there is significant upside to this name, so should I hold it? This is in my taxable margin account.

Q: Do you think these small cap health care can bounce back in a 3-6 month period or do you think there is a possibility they could drift sideways and down for a longer period of time,is part of their problems the headwinds of valiant and Concordia thank you.They make up about 15% of my portfolio.

Q: I appreciate your response to this question
Nobles health in Canada is NHC-T and in US HLTH-N
Is it better to buy in US account or CAN account?-The pro and con.Thank you.ebrahim

Q: Hello Peter & 5i team,
In my Health Care exposure (6% of portfolio), I hold CRH,CXR,GUD,PLI that I plan to keep. I also own PHM and RX. RX is profitable and has a whopping ROE of 48% and its forward PE of 20 is amply covered by the ROE with a ratio of 2.4 whereas PHM is not profitable (ROE of -20%); I don't have any info on their debt level and presume RX's is higher.
Given this cursory comparison + your insight, which would you keep if you had to chose one?
Thanks,
Antoine

Q: Crh showing more weakness today would you consider this a buying opportunity I have 5% weighting of this in my portfolio and am down 25 %.What kind of timeframe do you think this might take to recover

Q: This stock is getting pounded again today. Any reason for this other than the sector and the "shorts" running rampant? I didn't think the financials were really out of line.
thx for any and all info