Investment Q&A

Q: Hi, Valeant's share price took huge hit over past two weeks, after Hilary Clinton comments and Democrats' request for a subpoena for drug pricing. There are two drugs in question, where price increases were 225% and 550% appx. As per analysts covering the stock, even if price of these two drugs is reversed, it should impact the share price by about $8-$9. Except one major brokerage, no one has changed rating of the stock (Most have Buys). Although a few have adjusted price targets between $10-$15 but average is still about CAD$325. Last week stock traded as low as $204.50 and has now stabilized in $230-$240 range. Only a few weeks ago it traded as high as $347. Despite the near term headline risk (although it is not known if house committee will even accept the democrats request for a subpoena and US history of very limited success with drugs price control), is it reasonable to accumulate shares at these levels, in your view? Valeant still appears to be the only choice in large cap pharma sector in Canada (of course Concordia being the other)and I am wondering if there is an opportunity here. Thanks, as always for your valued comments.

Q: I am recently retired, 58 years of age and my investments are 100% in equities and should be looking to diversify into some assets with less risk. I am currently receiving company pension that is sufficient for monthly expenses. What are your suggestions to diversify my portfolio? I am looking at some bond ETF and/or CIBC Income Plus Portfolio. Robert L

Q: Hi Team, Question on oil in the future. What is your opinion on where the price of oil will be in about a yr. I have heard some analyst say it may fall to 20.00/barrel. if Obama strikes a deal with Iran, then they would be able to start selling their oil on the market. And they have huge reserves. That would certainly flood the market. Then I heard that Russia was going to start selling more oil as well due to deals with Syria. If this happens then would the price of oil should drop drastically. what is your take on these events.

Q: I was planning to purchase this etf but I see the daily volume is very low. Is there another etf with similar attributes and yield but with more market activity?

Thanks

Q: Which Canadian bank is your favorite, being the one that will offer the most growth and capital appreciation over the next 5 years? TD, RY, BNS, BMO, or CM?

Q: Could you update on Bonavista, (BNP), especially info on the dividend and why they haven't cut (again) or eliminated it. Any chance of this one going to 0.
Thanks
Doug

Q: In the FP dated Sep 25,a Joe Chidley wrote about the Black Ducks i.e.Fear trades in reaction to mini-events.2 good examples this week.1)H Clinton's pledge to control drug price gouging.This resulted in the Nasdaq biotech index drop of 7%,& VRX declined more than 10% on Tuesday.2)Volkswagen's cheating on emissions control tests,& the impact was Ford & Gm decline of 2.8% & 2% respectively on tuesday. Neither events change the fundamentals in the subject 2 sectors.The arrival of a black duck can herald opportunity. You are correct in your prediction that the recovery from the Aug 24 decline will be a W,& not a V.Note that on Sep 28,the S&P 500 successfully retested the Aug 24 low.On Oct 2 a retest again, & the biggest reversal to the upside in 4 months on volume which is higher than the average volume for the previous 20 sessions. Please advise the situation now;It is on a uptrend now?Is it time to take advantage of egregious pricing?Please provide some names. As always apperciate Your usual great services & opinions.Looking forward to seeing You on BNN on Oct 13

Q: Thoughts on the public bickering between mr glassman and mr boland? With the large decline in cbl since it's ipo, is it something you would invest in?

Thanks

Robert

Q: With these choppy markets, what do you think of Corbys as a place to wait it out. Also, do you think the dividend at 7.6% is sustainable?
GUY

Q: Hello, is it worth keeping inter pipeline after the decline or better to get out
thanks

Q: could you please give me a read on veresen.I have this one in my non registered account and am considering selling before a possible dividend cut.the pay out percentage seems very high.
Thank you

Q: Your opinion of Oracle please, and would you buy this company at this price.
Matter of fact would you be buying any U.S. stocks with our dollar being so low.
Thanks

Q: Been thinking about making an investment in the pipeline sector. Do you have a preference between Transcanada and Pembina Pipelines?

Q: Hi Peter, please comment on Pure, its back to 2013 levels and has had a rough week. We're looking to enter it if you still like it and can't see any news on the decline except for market weakness. Thank you, Paul

Q: I know that in the context of the broader market being horrendous that many equities are down. But pur has been putting in new lows and insider selling is very high. My instinct is to take a loss and move on yet you still hold this in your growth portfolio. How has your confidence level on this one changed in the last month?

Q: Do you think it is wise to reduce exposure to National bank given the recent news? Thank you.

Q: I follow the balanced equity portfolio. I would like to understand when you make the changes indicated for the month's theoretical portfolio, and when that information is available on the Website.

For example, the July portfolio indicates the following changes: "July 2 shares of CSU and bought 30 shares of BIN, sold FM". When where they done in July, and when is the information available to 5i members?

Thanks,
IF

Q: How long before CERF cuts it's dividend? Or do you think it has made it through the toughest part of this downturn and will be okay moving into 2016?

Q: It's my expectation BXE will be announcing some asset sales in the near future to help lower their debt. Generally speaking, do you think this will bump the share price up a bit? Thanks.

Q: HI Folks: I know you like Goldcorp. What are your second and third favourite gold miners and would you consider a gold royalty company (other than Franco N) at this time?