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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 Team,
Following a question about Canadian and US health care sector opportunities, I am trying compare and contrast IBB (iShares Nasdaq Biotechnology ETF) with XBI (SPDR S&P Biotech ETF). I realize the former focuses on large companies and has more concentrated positions in top holdings while the latter focuses on small companies with a more even distribution of holdings. What are your thoughts about a risk/return trade off between the two ETFs and what timeframe would you be considering to hold either one for an investment thesis to pan out? If you had to pick one, which would it be and why?
Many thanks, Michael
Read Answer Asked by Michael on August 18, 2017
Q: For those deeply under water on CRH, still in the stock and looking for positives:

1) Look at the Cash Flow Statement (not the Income Statement):
- This business makes real cash... CF-Operation is $9.75M
- Deducting 'non-controlling interest of $2.2 still leaves $7.5M
- CF Financing noisy due to retirement of high interest Crown and replacing by Scotia 3.5% loan - but there is cash generated for acquisition, debt replayment, etc.


2) Mawer Management is not selling... they are buying (as of end July)!
- Guy wondered about Mawer on July 16. I also track them as they are the best Management firm. Like everyone, they will have their share of losers and this may be one (they are sure deep under water) - so no guarantee but they are buying, not selling:
- Q2 data from Morningstar, they bought 924K shares and owned 6.43%
- How about July when the CMS reimbursement rate occurred? They bought +24% more (they manage the 'BMO enterprise' fund)
- How about after Q2? That we don't know yet...


3) One Director bought shares (independent Director, not Management)
- Per canadianinsider, Tood Patrick bought 50,000 shares on Aug 9/10
- Still would like to see the CEO or other Management buy but this is a first sign.
Read Answer Asked by Jennifer on August 17, 2017
Q: Hi there, just looking for further clarification on PLI, have you assessed the risks in Prometic not receiving approval for the Plasminogen BLA from the FDA? Could it be possible that PLI raised further funds very quickly, at a substantial discount, at $1.70, trading well over $2 at that time, suspecting they will not be approved?
"The Corporation is responding diligently to all FDA requests in relation to the BLA review. The Corporation will provide further updates on the expected timeline of regulatory approval as soon as available"
Could it be possible that PLI is suspecting the FDA is looking for further clinical data for approval, which could take an additional 12 to 18 months for final approval? Have you assessed these types of risks in your modelling for the Growth Portfolio holding? Where do you see the stock price trading at, if the above scenario does occur?
Hope I am wrong above!
Thanks!
Read Answer Asked by Hussein on August 17, 2017
Q: While I don't own GUD yet, I keep seeing it reviewed positively and therefore read the FP article you linked:
- "Laurentian Bank Securities analyst sees revenue rising to $6.9 million this year and $52.3 million in 2018 as more drugs work their way through approvals..."

Do you agree with the assessment of projected 2018 revenues of 52.3 million?
If so, what would the implied price of GUD be the end of 2018 based on revenues of 52.3 million?

Read Answer Asked by Curtis on August 17, 2017
Q: I was watching "This Old House" on PBS last night. They featured a Savaria lift which they installed for a wheel chair bound person. The elevator appeared well designed, simple to construct and worked well. Thought you might be interested.

By the way, unlike Dave, I have made a pile of money by following 5i Research recommendations. I note PBH hit a new high yesterday. (My main contribution to stock management is my ability to procrastinate instead of panic selling!)

Jim
Read Answer Asked by James on August 17, 2017
Q: Gents,

It's adequately clear (esp from some of the comments I've recently read) that the Healthcare/Pharma sector in Canada offers very few choices and even fewer good choices.

Whereas the same sector in the US offers fabulous alternatives, opportunities and growth.

I feel it is a shame to limit this weak Canadian sector in our portfolios when you can offer so much more with reccos south of the border.

Even a well represented ETF for US pharma/healthcare/bioscience might do the trick if you are time starved.

Just saying.

Sheldon
Read Answer Asked by Sheldon on August 17, 2017
Q: I hold a half position in each of ABC and CAH, am underwater on both, moreso on CAH. Please summarize your view on the US drug wholesale business going forward, and, provide the decision metrics for dropping one and increasing the position size on the other.
Read Answer Asked by David on August 16, 2017
Q: When would be a good time to make these acquistions?
Read Answer Asked by Colleen on August 16, 2017
Q: You have expressed the opinion that investors are bored with GUD as the reason for its recent rather lackluster performance but it's recent dive over the last 3 trading sessions of about 10% seems more than boredom. Is there anything going on at the company with respect to their products or with their management team that could be behind the steady downward pressure on the shares?
Read Answer Asked by John on August 15, 2017
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