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Investment Q&A

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

Q: When responding to a recent question you said that CVS was a low growth /high risk investment. I own the shares , having purchased them not too long ago around $61 a share, and did not consider the company this way . Yes there is debt. However my thought is that the recent acquisition of Aetna made the company better with modest EPS improvements in 2021 and higher the following year. As the market recognizes that the company is better positioned with Aetna , my expectation is that shares will continue to trend higher over the next 12 to 18 months. Shares currently trade at a very low PE multiple. Can you please provide you rationale for your assessment
Read Answer Asked by John on November 01, 2019
Q: If the federal government implements a national pharma care program, are there any Canadian Stocks that would benefit?
Read Answer Asked by Thomas on October 25, 2019
Q: Hello 5i Research team,
Would you say the acquisition of Biotoscana reduces the probability of GUD acquiring ENDO in the short term? Would GUD buy all ENDO, or exclusively the equivalent of the former Paladin? What premium or what price would you expect GUD to pay for ENDO if buying the whole company? What would be signs ENDO would be ripe to be saved?
Do you think the acquisition of Biotoscana will shut down Medison for a while? At least until after the next annual meeting, so that a second proxy fight would be avoided in the short term?
Based on the evolution of its stock price since its IPO, Biotoscana seemed not that successful as a stand alone company. What GUD can do to help turn things around / improve operations with such a small GUD team?
Thank you for your collaboration, Eric
Read Answer Asked by Eric on October 24, 2019
Q: Hi team

I seldom invest in healthcare stocks as they are a political football in the U.S. and often have binary outcomes with drug trials. It seems you either hit a home run or strike out. I saw a question earlier on BIIB. It is on my pharma/healthcare watch list. I am not sure why I even keep this list as I never buy anything off it. BIIB is now taking a 2nd look at trial data on an Alzheimer drug it dismissed as not promising six months ago. Now they view it as promising. It makes no sense to me. Did they hire a new scientist or sharpen the font on their computer screen? Others that I put on my list include AMRN and GH that to me also depend on binary outcomes on drug trials. My question is a general one. How does one develop a strategy for investing in health care stocks when it seems like they can jump or drop 30-50% overnight with the success or failure of a drug trial or the boss saying let’s take another look at this old data we dismissed earlier? Risk management seems very difficult in this sector.

Thanks again for the insight.
Dave
Read Answer Asked by Dave on October 24, 2019
Q: Would you update Knight;s share count following their buyback announced this summer? How many shares and floating shares are now outstanding?
Once they complete the purchase, do you think they will do a financing if they can get the share price back above ten dollars to finance possible future deals with their new company or possibly continue to pursue other deals.
Finally, how much cash will they be left with once they spend the $369M?
Thank you - very excited to see this deal!
Read Answer Asked by Steven on October 21, 2019
Q: I understand that Softbank's WeWork troubles might require it to unload some of its Guardant Health stake, but: shouldn't this be priced-in (to Guardant's share price) by now? Or are the details of Softbank's response to WeWork so all-over-the-place that nobody can guesstimate the collateral damage? Or has Guardant's decline put it in an end-of-year tax-loss vortext, such that it doesn't matter, now, what Softbank does?
Read Answer Asked by John on October 21, 2019
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