Investment Q&A

Q: Hi team, I recently sold MCD (in an RRSP) after the run up, and am looking to redeploy cash into a blue chip healthcare or pharma stock in the US. I'm looking for reliable dividends with capital appreciation, and planning to hold for three plus years. MRK and PFE are looking like good candidates, do you have any favourite blue chip healthcare stocks that you think would be a better fit?
Thanks, Alex

Q: Until recently I had no healthcare exposure. My plan is to add about 4 positions in the US large cap healthcare/bio space. So far I have purchased JNJ and GILD. Can you suggest 2 or 3 other names? Based on the research reports I have read I am leaning toward CELG and AGN, but I'd appreciate your opinion. Thank-you.

Q: I am thinking about investing in 1/3 BIP.UN, 1/3 BPY.UN and 1/3 BEP.UN but I am starting to wonder why I wouldn't just invest in the parent BAM.A if I was to do this. Obviously the dividend of the parent is lower than the three individual spin offs. Do you think that the overall return of BAM.A is the same as the spinoffs generally and is it just an issue of do you want internal share price growth or do you want more as a dividend? Or is the parent somehow inherently slower growing than the spinoffs for some reason? Thx!

Q: I have $1,000,000 I want to invest in VFV & VCE and I am wondering what time frame is best to make the investments. Should it be over a 1 month or several months, tax loss selling etc. Would you have any recommendation? Thanks for your great service. Bill

Q: for those who are looking for bargains and have a horizon of at least 12 months, the sell off of various stocks which appear to be tax related sales by mutual funds because of redemptions or dressing up the fund, offer good entry points. I can think of Keslo as one such stock.

Q: This is a utility and I've heard from some notable investors that this company's management is good at capital allocation. Looking at the past 4 years they are aggressively bought back shares and refinanced their debt. However, at some point earlier this year this company's stock took a nosedive. Can you share with us your opinion on this stock and if this is a good buy?

Q: Hi Peter and team,

What is the business model. What is potential growth of the company. How much insiders own the stock. Do you think long term (3-5 years), the company will be around. Thanks.

Norwood

Q: My thinking around the recent shorting and possible near in the future shorts in the next, say month or so, is "Bring them on!"

I say this because if the companies are sound companies, then they will continue to be good holdings going forward. Nothing has changed regarding the actual companies. So these short term share price drops are Excellent opportunities to buy a new stock from one's watch list or to add some more shares to an existing holding. Or nice opportunities for some shorter term trading, such as over a few weeks are being presented.


As far as VRX is concerned over my years I have noticed that on the TSX when a company grows very rapidly and becomes the biggest on the TSX that it shortly afterwards will get knocked down in price significantly. There will be different reasons for each specific stock but it happens. The reason's may be fact based or not fact based, it does not matter. The important part is that it will happen. Think Nortel.


Stan

Q: Is 8-9 drop in share price due to disappointing earnings warranted or an overreaction? Sell or hold a small position? Thank you.

Q: I found this lengthy article on naked shorting that was written in June this year that describes what could be happening today to the Canadian bio_techs. Publish at your discretion.

http://smithonstocks.com/illegal-naked-short-selling-appears-to-lie-at-the-heart-of-an-extensive-stock-manipulation-scheme/

Q: Can you tell me what the earnings expectations are for this company. thanks.

Q: Bought bto shares at 1.60$ it seems to lag behind other gold stocks on up days and lead the way on down days. What's the deal here?

Q: Your thoughts on CVG please

Q: Hello Peter & 5i team,
These stocks are up by some 80% so far in 2015; I'm very happy but it is hard to figure that this excellent performance is mostly due to the "unlocking of value" theme.
Regards,
Antoine

Q: earnings look strong time to reenter a position???

Q: Hi 5i Research team,
Walgreen’s announced a 100% cash take-over Rite Aid at 9$. The competition Bureau will review the transaction (I am relatively optimistic based on the recent Staples/Office Depot merger; the larger size of CVS; and competition from everywhere else in the US market). The closing is forecasted in the second half of 2016. I am wondering what to do (hold / sell on strength? / sell on strength in 2016).
This investment is outside my RRSP/TFSA: meaning large taxable gain (with only a small capital loss earlier this year to net against). The Federal Liberal may change taxation on capital gains before the closing of the transaction. I am using margin in this account: I pay about 2.75% of interest on the full amount backing RAD shares. RAD.US is currently trading around 8$ early Wednesday morning: therefore there is still about 11% of return to be made by waiting. There is an “opportunity cost” to wait, that could also be an “opportunity profit” of not reinvesting before the Fed make its first interest hike and shake the financial markets. The exchange rate could/will change (difficult to forecast, but my anticipations are: US appreciate versus CAD following a US rate hike in early 2016 => so no hurry here). US funds from this transaction will be immediately converted into CAD cash in my account.
Two US lawyers firm lunched a recourse against the board for accepting an offer that is too low, therefore not in the best interest of the shareholders (is there potential upside here?). Is it possible that Walgreen’s rise its offer without a competing bid? Can you reasonably expect a competing bid? If yes, could you named some potential alternative buyers (Walgreen’s has long been the main potential suspect). And finally, there is always the risk of the transaction not closing.
Am I forgetting something? Based on this picture, what do you recommend? Thank you for your advice, Eric

Q: Can you please comment on ESP's latest results. Which company would you recommend in this sector?

Q: Hi, Can you advise what the estimates are ahead of the Q3 releases this afternoon for MDA and CSU please. I am sure there will be questions regarding your assessemnt of the release tomorrow for follow up. Second, I unfortunately own some IRL (Minera) which is requesting to be delisted from the TSX. Can you advise what typically is the next step for shareholders in these cases outside of using share certificates for kindling?

Thanks,

Eric

Q: Constellation will issue its earnings release tonite. Could you please advise what analysts' expectations are for CSU's results? And thank you for helping us soldier through this very difficult market. Peter

Q: Peter and Team,

My portfolio is largely in line with the balanced equity model portfolio. I currently have 3.9% of the portfolio in IPL. I wondering if I am better off keeping IPL or moving that money (and may be increasing the position to 5%) to Brookfield Renewable Power. It feels like the world is shifting to renewable regardless of economics and I am wondering if BEP will give me a better long term return than IPL. As a piece of side info, I hold stock in TransCanada as well.

Thanks for the input.

Marc