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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: I'd like to start a long term position in at least one or two healthcare stocks or ETFs, but the sector looks treacherous and I can't quite decide. I'm considering a wide range of names, including companies like JNJ, PFE, AMGN, NVO, NVS, RHHBY, MDT and ETFs like XLV, IBB and especially IHI (medical devices). I've read many of your prior comments, including one where you recommended AMGN. In light of the latest news about AMGN and its issues with Enbrel, I'm curious to know if your opinion has changed, and how you might compare it to NVS which has a competing drug. Mainly I'm wondering if any of the investments I listed sound promising, and how you might rank them. Thanks very much for your thoughts.
Read Answer Asked by Brian on November 01, 2016
Q: Even after incorporating political risks, many health care stocks seem to have been punished more than seems justifiable. On Friday; minutes after the FBI said it is re-opening that email investigation , the health care sector sank even lower. The sudden stock price drop was in near-perfect correlation (McKesson, Novo Nordisk, Gild, CVS, Allergan and others were already down significantly year to date, yet all dropped sharply on the FBI news).

Granted, the damage to bio tech and pharma companies was self-inflicted. No one with a moral compass can dispute the fact that drug pricing abuses did happen (and perhaps still do). At current depressed stock prices, however, does it not now seem that many health care companies are being water-boarded indiscriminately? Is available info so nebulous that even traders or investing professionals don't feel confident. Are the unknown factors significant enough to depress stocks this much, though? Even after the already steep drops year to date? ( Sorry, I don't mean this preamble to turn this into a leading question).

QUESTION: Would you buy any Health Care stocks at current valuations (many show low PEG, high ROE)? This sector has been sliding down since 2015. Specifically, would you add to a position in Amgen or Merck , OR in the alternate, would you rather initiate a new position in a medical equipment maker? If the latter, which one please and why? Thank you.
Read Answer Asked by Adam on October 31, 2016
Q: Is WYN.us a good company to invest in for someone who is interested in growth (operations) and dividend growth ? Will the strong US$ hamper revenue or does WYN have operations outside the US that balance or dilute Forex risk? Is WYN excessively vulnerable to competition? Is it responsibly run and is it shareholder friendly ? Is WYN’s snr. management compensation reasonably aligned with shareholder interests? (Latter includes reasonable compensation and FAIR stock options and paid only if EARNED . Abuses by management in many companies is insufferable. Too many Boards allow c-suite ‘occupiers’ to hold investors hostage by demanding illogical bonuses often unrelated to performance; plus obscene payout upon dismissal for cause.

Please give your insight into WYN’s prospects,its current valuation (PEG and ROE), and prospects for growth. If you prefer a different company , I’d be thankful if you are able to suggest that alt. name)
Read Answer Asked by Adam on October 31, 2016
Q: Hi Peter and Team! I know that Us stocks are not something you specialize in, but I was thinking that I might like to invest in a Us bank with good stability and growth potential ,or an ETF that holds a basket of US banks. Any suggestions? Kind Regards, Tamara
Read Answer Asked by Tamara on October 31, 2016
Q: I play the market such that if stocks are not doing well for a couple of months I get rid of them. I can always buy them back later. Here are three Canadian stocks that fit that criteria. ADW.A, KXS and CZO. Do you see them continuing the same pattern for the next month or so? U.S wise I know you do not deal with that market, but OCLR dropped about 10% a month ago. I got in 3 or 4 days ago, and it dropped another 8%. I have read through Seeking Alpha that the conductor space that they are in could be the reason. What is your opinion on this. Dennis
Read Answer Asked by Dennis on October 31, 2016
Q: Hello, Apologies, my last question was about Viad Corp US (VVI) not Seven gen. Thanks.
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Question:
VVI has gone up by almost 30% since summer, I am thinking after the election if there is a little bit of a lull..might be a good time to take a half position on this company. What are your thoughts on this company. Thanks. Shyam

Answer:
Seven Gen looks quite good following its recent acquisitions. It is showing excellent momentum, good growth is expected and cash flow looks good. It has checked back a bit from its high, and looks good today. It reports Wednesday. Its last quarter was well ahead of estimates.

Read Answer Asked by Shyam on October 31, 2016
Q: I'm currently 50% in cash (although understandably I shouldn't be). I am contemplating allocating 70% of my entire portfolio to the Balanced equity model to represent Canada and the remainder (30%) to Vanguard's total market US market ETF - VUN.TO. In the past I have tried to stock pick myself using some suggestions from this site and have not come anywhere close to the performance you have achieved with the Balanced Equity model. What is your opinion on the 70% CAD market and 30% US market allocation? Thanks!
Read Answer Asked by Patrick on October 28, 2016
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