Investment Q&A

Q: Hi Peter and team,
I own a reasonable amount of St. Jude medical which is being purchased by Abbott - approx. half cash and half stock.
My other large cap medical holdings includes.
Pfizer, Merck, Medtronic, J&J
I also own GUD & recently bought some Savaria, small portion of EXE
Each has approx. a 1-2% allocation.

Would appreciate your thoughts about when & / or how to get out of St. Judes and what to replace it with.
I don't want more mainly pharma so probably wouldn't add Merck or Pfizer.

I like stocks with a moat such as SJM, MDT, Stryker, Zimmer Biomet and Savaria.

I don't know enough about Abbott to decide if I should simply take the shares. If Abbott is going to be more of a device / equipment company and looks good here I would take the shares.

I am happy to hold these 5-10 years (probably longer) and am close enough to retirement - 3-5 yrs that income and lower risk become more important.

I would appreciate your input as to strategy here and what to do with the cash / shares.
Could you rank the above names taking these factors into account?

Thank you in advance for the great service and your input. ( Please subtract the number of questions you think is fair.)


Tulio

Q: Despite your recent comment that Knight is likely in no hurry to invest it's $600M plus
cash, the share price is on a roll and hitting 52 week highs. Is this excitement over the former Paladin executive joining the team, mitigating any health risk that Mr. Goodman may encounter or just enthusiasm for their big bank account pre-election anticipating the possible emergence of bargains depending on who wins? Thanks.

Q: Peter and Team:
Do you feel a Democratic Presidential win would have short or long term affects on GUD's business model and share price?.
What is their overall exposure to US markets.

Thanks as always

Phil

Q: I would like your Opinions in regard to this mornings news with these 3 companies. I have held NRI for a very long time. CTX was a recent spin-off. No GUD shares at the moment. Thanks, Catherine

Q: I have a small (1%) position in Solium and am up modestly. I was pleasantly surprised at the modest share price bump after the poor Q2/1H earnings. Perhaps the market is looking at the improved topline and giving the company time to convert that to a better bottom line. However, I'm thinking of selling SUM and buying more GUD, which is also a small position. I could also keep SUM and just add to GUD. Could you provide an outlook on SUM for the next 2-3 years and the relative merits of these two? Thank-you.

Q: New President and CFO formerly from Palladin who worked with Goodman and was instrumental in selling Palladin to endo has been hired at Knight. Once acquisitions are announced as she will surely make acquisitions this should kickstart the stock. Am I right in that Knight is sitting on a lot of cash?

Q: A year ago, Knight signed a deal to distribute 3 of Advaxis's products in Canada and bought about 400,000 shares at $13.91, a premium at the time from the Advaxis treasury. The shares tanked to $5, recovered to $8 and have jumped %6 to $14 in the past 3 days on the announcement that Amgen bought worldwide rights to another Advaxis drug and gave them $40 Million. This will help Knight as the shares appreciate but will it hurt their deal on the other 3 drugs they represent as Advaxis may concentrate on the behemoth deal with a super-large pharma co. and neglect their other products.
Knight's share price has help up well during the healthcare decline. Do you think they will one day do a big deal or continue to drip out their $600M in miniscule does? I am sure this company will be a blockbuster some day, but I may not live long enough to see it!
Thanks.

Q: I would like to increase my investment in the Canadian health care sector. I am looking for yield. What are your top recommendations? I already have enough Sienna (SIA) and Chartwell (CSH.UN). Pharmaceuticals and laboratories interest me.

Q: Hello Peter,
I was expecting Fairfax, CRH medical, and Constellation to go up significantly after the earnings announcement. Fairfax dipped, CRH and CSU went up slightl. Any comments please? Do you think it is too late to enter Electrovaya at 3.40 or above? Also, do you think Knight (gud) is a type of stock you can buy and hold it for years given the credibility of the management team? Thanks very much.

Q: Hi, I'm considering PUR,PEO and GUD for my TFSA. What is your current view on these presently. Which two, have the best up side potential in the next year or two? THX

Q: Hi Guys,

Care to comment on Knight Therapeutics increased position today in PDP? Is PDP still quite risky and would you recommend it with the potential approval of 2 of its drugs this year?

Q: What are your comments on Knight acquiring a minor stake in Pediapharm today? Is it a good time to buy PDP? Thank you for a great service. Cole

Q: i read every question and answer everyday and 3 of your favorite companies and 3 companies you continually recommend are shopify, knight and kinaxis.i am overweight all 3. and all 3 are in your model portfolios.
we know knight is protected by its huge cash balance and once it is gone the parameters would change hopefully for the better depending how goodman spends it.
you keep making reference to shopify and kinaxis being expensive, earnings for both aug.3 and aug 4. my question is anything that i should be aware of before earnings. dave

Q: between these two companies, which one would you prefer in terms of safety and return potential? Saveria has had a great run recently. would you still recommend buying in?

Q: I own these 4 stocks in my TFSA account in which SIS is 2% holding overall all accounts and the other 3 are 1% overall. From reading the questions that have been asked on theses 4 stocks , you feel that DRT is a hold as well as GUD? I would like to increase my holdings so do think that it would be best to add to PLI and SIS at this time and not GUD or DRT?

Thanks
Dolores

Q: Is the etf VE okay in my cash savings (taxable) account? There is no more room in my TFSA.
Based on my research, the inception date for FEZ is Oct 15, 2002. The inception date for VE is June 30, 2014. Loblaws became buyable on the stock market January 18, 1956. What is the similar date for GUD? From, Patti.

Q: I own the model portfolio (thx) for the great returns.
I am looking at adding GUD from the growth portfolio. I am very impressed with Jonathon Goodman and what he did with his previous company. I am thinking of a 5% positon or would you leg into this one with 2.5%

Q: I hold these 3 plus XLV in the health care portion of my portfolio. Not adverse to risk but I am wondering whether CXR is worth the grief. Is there a case for focussing on the others, or does the risk/reward of CXR make it worthwhile holding?

Q: I do not have any of the stocks in the growth portfolio but I am considering to do so and was wondering what the top three stocks are that you would recommend. With thanks, Bill

Q: Any reason GUD was up so nicely on some pretty heavy volume Thursday?

Thanks

Sheldon