skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I am wondering what you think would have happened to the share price of Concordia had they NOT made the large acquisition of AMCo in September 2015. Do you think CXR would have been better off?

The acquisition of AMCo cost them US$3.5B, and the market liked it initially. They issued 8 million shares at US$65 to help pay for the acquisition. Yet the market cap of CXR is now only US$1.2B, much less than half of what they paid for AMCo, and the share price is now under US$24. Now they put themselves up for sale. Why would they do that?

I know they have been tainted by the problems in the healthcare sector like at VRX, and Hillary’s tweet, but still wasn’t it supposed to be a great acquisition for them, yet the stock has lost almost 75% of its value since then. Yes they have large debt, and that was known when they made the acquisition, and it didn’t seem to matter then. Now everyone cares about it, and the stock is under a short attack.

I want to be a believer in CXR, however, I like to understand what is going on, and at the moment I don’t get it. What lessons can a retail investor learn from this fiasco?

Paul
Read Answer Asked by Paul on June 23, 2016
Q: The share price continues to languish, although it is up substantially from its earlier lows (but still down from its highs). Despite this malaise, the stock continues to draw widespread support from several BNN analysts and others. Why is the proposed restructuring not better reflected in share price? Does it suggest there is a greater deal of risk in this happening than first thought or that restructuring will not prove to be that beneficial?

Appreciate your insight?

Paul F.
Read Answer Asked by Paul on June 23, 2016
Q: Hello Peter
I am wanting to replace some bonds with these 4 stocks. (EIF,PKI, SIA, AD ) Could I have your opinion and any concerns.
Thanks for your great service.
Gary
Read Answer Asked by Gary on June 23, 2016
Q: Hi Ryan and Peter,
My question is of a general nature and concerns a problem many seniors are having with portfolio construction. I'm 70 years old, have a defined benefit pension which, along with my wife's defined plan, covers our monthly commitments. We are underinvested in the fixed income part of our portfolio but because of the lack of returns on bonds and GIC'S, are hesitant to commit a large portion of our savings to this sector.
As with many seniors who have their monthly expenses covered by pensions, we need guidance as to what percentage of our funds should be in fixed income. What percentage do you think is appropriate and could you suggest a few specific investments.
If you believe, as I do, we would be better off investing in Canadian Blue Chip companies that offer relatively safe growing dividends, could you suggest several such companies.

Thank you in advance for your much appreciated guidance.

Read Answer Asked by Les on June 22, 2016
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!