Investment Q&A

Q: It seems to me that when 5i members seek guidance regarding possible investments in American healthcare companies, Pfizer seems to be a common recommendation by your team. If I'm correct that you consider it to be a good investment at this time, what exactly are the reasons you believe this to be the case. If I'm wrong, what other American Companies do you favour currently. I'm willing to accept some risk but I'm really looking for a company that can balance off some of the Canadian small caps that I have in my portfolio that I'm purchased with your guidance. i.e. Knight, Covalon and Reliq. Again, thank-you for your invaluable guidance.

Q: I have been sitting on some CXR shares I foolishly bought many years ago - I guess I just could not bear to take the loss. This morning the shares have come to life thanks to a press release. I think I should now sell my shares. Do you agree?

Q: Hi, what do you think about today's news release? Is it a good news to the long term perspective? And why the stock price acted so negatively today?

Thanks

Q: I currently have small positions in ABT, CELG, and PHG. Thinking about selling the 3 and buying PFE unless you suggest otherwise. Also have a full position in GUD.
Thanks for the great service.

Q: The Saudi/Canada conflict definitely will have a bearing on the contract with COV. What are your thoughts on this. Is it still a hold or Sell

Q: Hi terrific team,

Earlier last year, in the health maintenance sector, you had mixed views on Molina Healthcare (MOH-N) , Aetna(aet-n), Humana(hum-n).
What would be your views now on the best stocks for growth in this sector and are they any ETFs which would cover them well ?
Thousand thanks,
JD

Q: Hello Team,
Although you do not cover US stocks, please give your recommendation on below healthcare stocks based on current valuation and future growth/dividend income potential for new money investments.
1) AMGN OR ABBV
2) GILD OR BIIB
3) PFE OR MRK
4) MDT OR ABT OR BDX
5) UNH or ANTM
6) ISRG OR SYK

Appreciate your great service.

Thanks
Ninad

Q: Follow up questions:
Thank you for your answer.
Are the expectations of 6 to 10 cents provided by the company or are you doing your own calculation to get this number ?
Also, as a business scale and grow, do you try to estimate future margin and profit (say 3 years out) or is it a futile exercise given that there are so many variables...
I am trying to get better at assessing companies like Reliq. I usually pass on them as they always seem too risky for me and 1-product company most times.
Any advise or general comment would help. Thank you
Pierre

Q: Can you please explain how you value this company in terms of ratios and financial metrics ?

Q: Vmd has been on quite a roll lately. Earnings were decent. Is there anything else to it? What are your thoughts on the company?

Q: could you give me your comment on NVCR

Q: Do you have an estimate of SIS earnings per share for say 2019 with their Swiss acquisition and any observations on issues associated with the integration of the new co; also is your price target of 21 based on the combined earnings and for which year?

Thanks

Q: What is the short interest on Reliq?

Q: I bought RHT at about 1.85 and didn't follow my own rule about limiting downside. With it sitting where it is now should it be kept or replaced? Could you name 3 growth oriented names (in portfolio or otherwise that you would rather hold if selling RHT?

Q: Thoughts on the RBC analyst posting an $11 target? Quite a drop on that. Would you buy on this dip? What price target would you put on the stock in a buyout scenario by a larger company? Is this likely?

Q: SIS has a surprised 5% pop today against a sea of red. Are you aware of any upcoming news? Usually (of course I'm just guessing here) that is a sign of a potential buyout, but I could be reading too much into this unusual one day move. Please enlighten me. Thanks.

Q: Hi, would you have any problems buying more cov to a full position at under $10, or would you wait for it to settle back a bit from it’s big move?
Thanks

Q: Hello 5I Team.
I'm intrigued with the heavy insider purchasing in Acerus Pharm, and, I like the business they are in. I took a very small position but would really appreciate your analysis prior to adding to ASP.
Thank you!
Brian

Q: Hello 5i!!!
Could I have your thoughts on Tandem Diabetes Care ?
Anything else in the sector you might prefer for a higher risk investor?
Thank you
Dave

Q: All things being neutral, what would your expectations be for Covalon's 2018 and 2019 earnings per share? Also, can you give a brief history of their cash levels (maybe for the previous 3 or 4 quarters?)

Secondly, I know you are not fans of averaging down. However, if you WERE to average down, would you take your initial purchase price in trying to determine your percentage weighting, or would you take the current market price? Example, lets say I take a 2% position in Covalon, which theoretically I would want to be my maximum weighting. Shortly afterwards the share price falls 50% (for the sake of easy math). Would I prohibit myself in buying more Covalon because my initial purchase price represented 2% of my portfolio or would I grant myself the option of averaging down because now my weighting in Covalon represents 1% of my portfolio, assuming my portfolio value remained the same.

Thanks and good luck to the staff's kids for their new school year.

John