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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: Hi, I have a 1/3 position in Allergan (AGN), down about 40%. Michael Waterhouse, a Morningstar analyst, makes a strong case that Allergan is considerably undervalued. I’m thinking of adding to my position and would appreciate your opinion. I also hold full positons in GILD, CSH.UN and GUD, as part of a well-diversified portfolio.
Thanks, Kevin
Read Answer Asked by Kevin on April 23, 2018
Q: My local newspaper had an enlightening article on opioid prescriptions to treat chronic pain. The article stated that over 9 million prescriptions were filled "in Ontario alone" during 2015-2016. I found this number astounding considering the population is about 14 million which means one in every three people had this prescribed during that time which was an increase of 500,000 from three years previous to those dates.
Does this not mean Knight's announcement of Health Canada's approval of Probuphine for opioid treatment is a huge event? Why would they announce this after the close on a Friday - it seems like a big deal. What do you think?
Read Answer Asked by Steven on April 23, 2018
Q: Just received report and the board would like to list on Nasdaq exchange.They want to reduce share holdings for a price to stay listed on exchange.Good or bad and should I buy more or wait for more results.I could buy 1000 shares and wait also.Very small % of portfolio
Read Answer Asked by Guy on April 20, 2018
Q: News reports say Takeda is offering $66.20 in cash and stock for SHPG but stock currently trades at $160.16. Am I missing something? Aside from the takeover interest, is SHPG a good buy at this time
Read Answer Asked by hal on April 20, 2018
Q: I hate it when companies do “bought deals” at prices lower that market price. I understand why they do it but it feels like a blindside. Companies do not care for the shareholders.

The little guy always feels the pain and then the stock is dead money for several months until the deal is closed or longer.

5I is just guessing they will buy another company, no one knows for sure.

My questions are:

1. Why would SIS-t have to “clean up the balance sheet” prior to buying another company? It’s such a small deal. Is there something wrong with the balance sheet?
They did not do this for previous purchases. (H.E.S. Elevator or was it Visilift) or did they, I may have missed it? Is there another reason for this deal? Isn’t the issue for more funds normally done at the same time or after a purchase instead of before?

2. SIS-t will be “dead money now”. Do you not believe that when a stock becomes “dead money” it would it not be better to place capital elsewhere until the stock moves up?

3. For bought deals, the little guy can’t participate in these types of issues if managing a self-directed account. How unfair is this?

4. I don’t usually look at financial reports for companies but this looks suspect.

The Annual Balance Sheet for Dec 31, 2017 shows:
“ Intangibles” = $100.49C$Mil. versus less than 12.05 mil in previous years

Why is it much higher than the preceding 3 years? Can you explain what this is? And should we be worried?
Read Answer Asked by Robert on April 18, 2018
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