Investment Q&A

Q: Hi guys,

I've been noticing that healthcare stocks are all down big today and part of last week. Names like Concordia, Actavis, Biogen, and smaller names like Nobilis, Patient Home and Convalo are down as well. Is this part of a sector rotation with people rotating out of a hot sector maybe to get exposure to energy with the recent run up in oil?

Thanks,
Jason

Q: I am fully invested and therefore must sell a position in order to buy a new position. I am considering selling LMP, WCP and GUD to raise funds to buy a 5% position in CXR. I am hoping the trade will reduce my risk somewhat and increase momentum. Would you please comment. Thank You

Q: Hey Peter & Team,

One of the news letters I receive had this to say about PHM. To me Fabrice Taylor makes much sense and goes directly to some of your comments on today's answer in our forum.

Post it if you think it worthy of such...


I spent two hours with Michael Dalsin (of PHM, Convalo and Inspira fame) in Los Angeles last week and got a very good update. I also spoke to him today.

PHM stock, we can see, is not immune to the laws of valuation but I took a small piece of the $1.50 financing (despite having sold all my stock at $1.20 after a 2,400% return). I wouldn't call it a value stock here but I note that insiders were net buyers of stock lately and the story is better today, so I think you can put bids in and let the sellers come to you.

Using existing cash (i.e. not including the financing) I believe the company can get to EBITDA (through acquisitions) that would give it a valuation of about 15 times today, which, again, is not a value stock but isn't as crazy as 30 times.

I think part of the selling is from investors who bought the $1.50 financing, so they’re selling their free-trading stock. That suggests that $1.50 should be roughly the floor.

The oil price also hurts PHM and other health stocks when it rallies, as it draws investment money out of health care and back into energy shares (and pushes the Canadian dollar higher, which cuts into PHM’s profits since it earns money in USD.) But I don’t think the Saudi plan was to cut the price of oil in half for six months. It was, and is, to crush the U.S. shale industry, and that still hasn't happened so I don’t expect strength in oil prices.

There were also rumors that PHM would be banned from cross-selling, which is simply not true. Management would have heard of any move in this direction before the public (or any short seller) and they have not as of today.

Much of the same holds true of Convalo. Put in bids and let sellers come to you at as low a price as possible.



as always... thanks for all you do

Gord

Q: What do you think of this company? Present value and future prospects?

Thank you!

Q: Good morning...I am currently a non resident CDN investing in CDN Equities off shore...I mainly stick with CDN stocks out of comfort/routine...I currently hold US dollars and trying to decide if it is better to change to CDN for exchage rate and invest further in CDN stocks...or invest in US...currently have no US exposure...consider my situation financial sound...I have followed your portfolio matching 75% of holdings...in one account and have done well over the past years...I currently have a timeline of 4 to 5 years for my offshore account before liquidating...what would be your top 5 picks for CDN and US...Growth and Income...no tax concerns..

Thanks

Q: With the increased limits for the TFSA I was thinking of either increasing my holding in CXI,currently 1.8% of my total portfolio OR using the $9000 (my TFSA and my wive's) and buying EFN.However if I did this it would mean EFN would only be about .5% of my total portfolio and in a recent portfolio review you felt that anything less than 1% wasn't worth while.Other holdings in our TFSA's include DSG/ESL/SYZ/CGX/ENB.All are over 1% with ESL the highest at 2.9% of my total portfolio.Any advice is greatly appreciated.Thanks Paul

Q: Good morning, do you have enough confidence in the management team at Avigilon that buying now and forgetting about it for three to five years would be a good idea, thanks?

Q: Good Morning. I would like to know if there is a time limit to declaring profits and losses on my income tax return. Thank you.

Q: Why are these U.S. chip stocks so weak lately. Are they buys, holds or sells?
Thank you

Q: Would appreciate your thoughts on Surge asset sale today. They indicate intent to reduce their debt to $135 million from over $500 million with maintenance of their production. Seems to have dramatically reduced their risk profile.

Q: Please comment on the todays news and the revised outlook for Surge. It would appear they are making progress and reducing risk/debt? Thanks, Gord

Q: Patient home monitoring and NHC hit new highs on Monday and by Wednesday they had pulled back approximately 25%. ITrade indicated that companies like such as those that grow by acquisition - there are pros and cons of companies that grow by acquisition. A recent BNN guest indicated there are smart money people like people who appear on BNN and have newsletters. Then there are dumb money people -- (me) -- who watch BNN for advice and subscribe to the newsletters. Bruce Campbell BNN regular from Alberta has recommended these practically every time he has been on. Would the smart money people have been getting out of these positions when they hit new highs a couple of days ago and the dumb money people like me still have them?

Q: Can you please comment on its recent earnings. Thx

Q: Hello Team, I only have a small position in Gold Corp, and I would like to increase my exposure in the mining sector. I was thinking of purchasing FM, and I would like to hear if you feel that now is a good time to jump in. Also I would like to hear your opinion on any other candidates for the sector that you feel are worth holding. As with all my stocks, my intention is to hold onto them for a couple years.
Have a good weekend!
Patrick

Q: What are your thoughts on Dundee Acquisition Ltd. and INFOR Acquisition Corp? Are these types of vehicles worthwhile investments?

Thanks

Q: BLX RNW BEP.UN which one do you like better.


Thank you

Q: Hi Peter and team. For the most part, I am a buy and hold investor with a very long time horizon especially for dividend-paying stocks. However, I also use a buy-write strategy where I write covered calls on stocks. For example, I am considering doing this with AAPL $135 calls expiring in July (07/17/15) that last traded at $4.46. So, if buy 100 shares stock and write 1 call, three month upside (after transaction fees) about $900 for a $13000 investment (7%) Any thoughts or advice on this? (E.g. what time frame for calls would you suggest? Any "art" of selecting the best delta?) Thanks for great service!

Q: Good Afternoon,
Do you guys know anything about Paymobile? I believe it is still privately held? Any thoughts or info on this one? thanks.

Q: About a year ago your position on FAP was negative for several reasons (high management fee plus currency risk) and you suggested BCE, WCP, ENF, or COS would be suitable to replacements in one's portfolio. I do own the company and must admit the dividend is what's kept me invested. Do you still feel negatively towards FAP and it so, would you maintain your list of replacements or change/add to them in any way. As always, thanks for your guidance.

Q: After reading your column in Saturday's National Post my eyes wandered to
the right, a beginner's guide to Alternative Investing. What do you think of the article
and what funds would you recommend? Would you recommend any ETF exchange
Traded alternative funds by Purpose Investments Inc.? I like most investors have avoided this this type of investing because we really do not understand it.
Thanks to all.