Investment Q&A

Q: Good day

I will like your assistance on guiding my investment decision. I have read your report on Knight Therapeutics. After Knight has deployed its war chest($736,000,000), you are forecasting earnings per share of $0.59, plus the EPS for the last quarterly report of 0.06$. If earnings grow at 15% per year for the next 5 years, then in 2022, EPS will be :

2017 2018 2019 2020 2021 2022

$0.65 $0.75 $0.86 $0.99 $1.14 $1.31

I am assuming cash is deployed this year, the share count remains constant and investors in 2022 are willing to pay 15 times EPS. If this scenario holds, then in 2022, the share price should trade at around $20 (1.31 X 15). At current price ($10.60), this scenario would result in an annual rate of return for the next five years of 13.1%. Are you comfortable with my scenario or would you change some of my parameters ?

Gilles

Q: Is there any disadvantage to CRH's ability to make acquisitions caused by their negative share price momentum?

Q: Do you think that the dust has settled with CRH yet ?

Would you say that it is still over-valued ? under-valued ?
or priced appropriately ?

Q: Looking for reassurance and Not a question per se, I am seeing many small amounts of shares being traded. No big blocks more than a few thousand which indicates that my fellow retail investors are leaving. Reminds me of when PHM was going to the dogs. I hope CRH isn't another medical shell game. Down 18 plus %.

Q: This is basically just an opinion but I think that last week the action with CRH was an example of what you really mean by volatility. The the 5 to 10% that happens some days for no good, obvious reason are to be expected in a growth portfolio and are just a healthy fluctuation in a share price. Such fluctuations actually strengthen the stock. Comment ?
Thanks for your support
Clarence

Q: What is your view of their recent year end results? Thanks, Gerry

Q: Can you please comment on Medicure financial Quarter and Year-end results released last night. Thanks.

Q: What about Zimmer Biomet's results today did the market not like? ZBH is down 7% today.
Regards,
John M.

Q: Hi Peter and Team,
Is it CRH overvalued now? It seems that investors do not like the financial result and outlook. Your opinion please.
Thanks

Q: GUD. The stock seems stuck at 10.50$.

Would you advise simply resilience, and awaiting the outcome ?

Q: Hi 5i - Bruce Campbell has had PHM as a top pick a few times in a row on BNN (could be just pumping the stock that his clients own?). What would you need to see with PHM for an investor to continue to hold it (or would you simply sell and move on)? Thanks, Neil

Q: In your last answer on crh do you take into account the correction issued by the company regarding its first press release ?

Q: CRH down another ten percent today. Can you please comment on this after the CC. Do you still recommend holding this.

Q: Sorry, another CRH question. The stock is down after what looked like a solid earning quarter. is there something in the earnings report that investors do not like? Your thought on the continued selling pressure.

Q: Sorry another comment that Members owning CRH may find comforting and certainly shows the clear difference between it and Valeant/Concordia:

"At March 31, 2017 , the Company had $9,232,240 in cash and cash equivalents compared to $9,507,004 at the end of 2016. The decrease in cash and equivalents is primarily a reflection of cash generated from operations, less cash used to finance acquisitions during the first quarter of 2017"


Looking at the Cash Flow Statement: they generated CF-Op of $8M and acquisition cost was $7.5M. Net Debt did go up ~$3M to fund some distribution to non-controlling interest (need to dig more into note 4 for details).


The main point through is CRH earns real cash and finances its acquisitions mainly from its cash flow and not from out of control debt - as the Motley Fool article was suggesting.

Q: Your analysis and thoughts on CRH's quarterly results?

Thanks!

Q: Does CRH report earnings before the open of markets, during the day, or at the end of the day after markets close.

Q: Since tere are few healt care companies in Canada wouldnt it be better to invest in XHC, if not what company would you suggest

Thanks

Q: So last night Motley Fool Canada took down their article from yesterday that was bashing CRH and comparing it to Valeant. Then the author releases a new version of the article that is actually promoting CRH for the most part. I did notice in the original article that they listed Motley Fool (US) as owning the stock which struck me as odd. I wondered why Motley Fool would bash a company, contributing to its decline while its parent company is long the stock. Feels like maybe the author got a big slap on the wrist and was forced to instantly retract the article? Very weird.Would there be any legal implications there, seems like manipulation. They are bashing a stock one day, and pumping it the next.Not that I had any respect for Motley Fool but I've defintitely lost the little I did have for their stock reports.

Q: The company is releasing earnings 2 months after the last release and not the usual 3 months. Is this a concern? Thank you.