Investment Q&A

Q: According to BloombergBusinessWeek , Cigna’s offer to buy ESRX.us includes $15 billion in debt, and Cigna will pay $48.75 in cash plus 0.2434 shares per Express Scripts share. That is approximately $96.03 per share , says Bloomberg. Yet in the past 2 days (8 and midday 9 March) ESRX shares have traded in the range US$79 – 85. This is noticeably lower than the offer valued at $96.

Do you see this as an opportunity to buy more ESRX? Or should an ESRX holder just wait and see? OR, do you think it is best to manage risk and sell ---even if price is 10 to 15% below current offer from Cigna. Is deal risk higher than most on this offer, given upheavels seen by pharmacy benefits managers and pharma chains like CVS?

Q: I'm thinking of getting back into TSGI. Should I wait until March 14th for the release of the fourth quarter financial results ? Thanks.

Q: Good morning 5i

I have benefited quite well from the ten year market performance. Not as well as if I had bought the US Market on March 9 2009 and added new capital all the way. In some individual stock positions I have experienced losses during this longest bull market run.

Additionally, over the past couple years, 5i has add positively to net asset value and this investor's awareness level.

The question here is about seeing through an inevitable correction or bear market event.
The minor correction event of 2018 offered a view to how it will feel when prices decline.
In the wake of that event, how does an investor continue to deploy and redeploy capital while staring at the high potential for a market decline.
The difficulty being experienced is, as I cleanup and balance individual weighting, it is now difficult to make a go-forward redeployment decision......add to equity exposure.
Additionally, the amount of time being waisted watching daily price movements has increased.
Some days it feels like going to cash would solve all my concerns. It would not however since asset growth is a necessary target.

From your experience would you please offer some Thoughts and guidance on what is written above?

Thanks
Dave

Q: You have said in the past that New Highs tend to go higher. Is buying New Highs a good strategy ? Recent New Highs are GIB.A, TSGI, ZBK, PBL, TD, CSU, SHOP, CF, all good names and you seem positive towards these Companies. RAK

Q: Where would i put my money to get a more stable return

Q: Som seif recently said he predicts emerging block chain technology will cause the etf industry to go to zero. Do you consider this a feasible scenario and if so how imminent is this likely to occur in your opinion.

Q: Gentlemen,
On my sector staple 7.7% PF, I have ATD.a (5.2% PF, +30%) & PBH (2.5%, +55%)
I wish to reduce the sector to 5%.
What 5IR suggest to reduce the 2.7% on this sector.
Thanks
best Regards

Q: In Nov IRO.v reported TTM EPS of $0.11USD for Q3 & it closed on Friday at $0.485. It appears to be extremely cheap with a P/E of roughly 3x. Fundamentals have been improving each quarter. They have some debt from the transformational acquisition of Papillon in 2016 but have been paying it down rapidly in 2017. With these key points above, I think it deserves some further consideration.

Another subscriber had asked about IRO in January & 5i said “At less than $10M market cap, we would completely avoid IRO.” Yes I agree, it’s a very illiquid microcap but that does not concern me because I’m not buying million of shares. I recently purchased a few thousand shares in my TFSA account. I thought it has potential to be a 4bagger this yr. Do you really think it should be avoid & why?

Q: Hi,
I'm looking for 1 or 2 industrials with a good & growing dividend. I already hold CNR, TRI & XTC. I'm not interested in WSP.
Thanks,
Gord

Q: Can I please get your opinion on CanWel's latest results.

Thanks

Dave

Q: Hi 5i team - I have held Surge Energy for quite a long time and it has been a disappointing stock. Even with the lower oil and gas prices there are others that have at least held their own. Are there two or three similar companies that have had a better performance record and perhaps better upside. I am planning to sell Surge and buy something that has performed better if you think this is a sensible strategy. Thanks.

Q: Hello 5i what are the estimates for doo, dol, pbh. Thanks Kim

Q: We hold ALA - SPB and CGX...we are thinking of selling SPB and CGX to buy ALA...we would be doing this in a cash account so would be o.k. on tax ....the thinking being that when altagas completes its deal for WLG the stock should do very well plus we would increase our dividend yield on this account...can you please give us you take on this trade and thanks again for a great service....gene

Q: I undertand that Irhythm Technologies, a US medical device/technology company, is far beyond the normal scope of your stock analysis. However it appears that the company is combining heart monitoring and analytics through a simple patch. This appears to be a significant development but...
I would appreciate your comments on the company if you venture into this sector of the market.
With gratitude for your assistance to retail investors.
Ed

Q: Hi 5i team, I would like to dabble into ETF. How does MER affect the return ? From the 5-year chart of HQU has a 600% return , will you not consider it a choice of long term investment option ? Thanks for all your advie.

Q: what caused the recent stock price drop?

Q: I would like to have some exposure to the nickel market. Could you make a couple of suggestions as a way to play this commodity.
Thank you.

Q: Purely, on the basis of which company has the best prospects for capital gains going forward, should I buy Enbridge or Fortis at these levels. Or should I take a position in both? Why?
As always, thanks for your valued opinion!

Q: Hello, just want to ckeck with you if my calculations of the debt / cash flow ratio of Enb is exact? I obtain a ratio of 9.2 and here is how I get it using data from Tmx Money: Long term debt of 60.8 B / Net cash from continuing operations of 6.6 B = 9.2 ratio. If that is what you have, are we in dangerous territory? Thanks, Gervais

Q: Hi Peter and gang.
What do you think of ProMetic’s medical application and technology?

Secondly, does ProMetic have the financial strength to survive until they can turn a profit? I see analyst consensus is they won’t be profitable until 2020 / 2021.

Lastly, are there any 2018 red flags or developmental milestones we can be on the lookout for to monitor the viability of ProMetic as an investment?

Thanks.

John