Investment Q&A

Q: Given PHM's most recent news release regarding guidance and the decision to close Logimedix - would you advise taking any action?

I own a considerable number of shares with a cost base in the 60 cent range and would like to know if you advise selling or continuing to hold.

Q: I read the PHM guidance thoroughly and, based on over 30 years of entrepreneurial experience, I came away with the feeling they are executing as they should considering the challenges they have acknowledged. When a business experiences a decline in sales, it is not always negative. Trading dollars is negative but trimming unprofitable products saves cost of sales including staff, product cost, etc. and those funds can be used to grow the more profitable side of the business. Unlike many failing business models, PHM has cash and limited debt. Usually a failing business cannot resurrect itself due to debt burden realized from declining revenues. PHM went from $40M to $32M in what will most likely be their worst quarter. Recalibrating with a more defined product line and costs under control are exactly what any business consultant would tell them to do. Now they can profit from their sales which they say will rise throughout 2016 and be in a position to add incremental acquisitions from their cash flow. Finally, the management team has the experience to see the shortfalls of the company and deal with them head on. I support their plan and remember they are heavily invested at $1.47, The senior management owns over ten percent of the company.
This stock has been the victim of rumour, the publicly suggested sale of the company and negative comments for months. They are still standing and today they turned a corner. If they can execute as they have to date, I can see this company growing significantly over the next two years. Today, someone has bought well over eight million shares from fed-up sellers. I am one of them. Do you see any eventual positive success from this viewpoint?
Thanks.

Q: With the events that are happening and no doubt more downward pressure on the stock would it not be appropriate for the CEO to make a press announcement regarding the short issue, coupled with ensuring shareholders that covenants have not being broken. Otherwise this is only going to continue, which could result in complete devastation of the company. I believe DH did this, and the stock easily recovered.
I fail to understand why management does not take a firmer stance. "just sayn" My Rant for the day

Q: I currently own a small position in Concordia, approximately 2% weighting and I am considering buying more based on the CEO comments today reinforcing the auditors report. Please give me your views of the company presently and your longer term prognosis. I know how leveraged the company is but do you believe they are a "Valeant" in the making ?

Q: Are there any debt covenants that would be considered in default due to a lower share price?

Q: BNN reported that Pacific Square removed from their report what they said about PriceWaterHouse Cooper. Also, CEO of Concordia discredited the report. Apparently, the short report can't be found anymore. Seems that easy money is being made writing short reports. Can't blame investors for selling after PHM, VRX, AYA, GXI only in 12 months and so many "good" stocks taking the elevator down.

Q: Thanks for your quick response. Little curious regarding what is happening here, and is there anyway you can confirm that there is nothing to be concerned regarding short selling and the auditors report.
This would be a compelling buy here, but reluctant to through good money after bad, and I just purchased a few hundred share yesterday. Little frustrating to say the least.
The talking heads on BNN are suggesting similar problems to valiant at the moment.
Again thanks for your help

Q: Just heard sec com. is investigating financials, coupled with a short sellers report.
Can you elaborate.
Thanks

Q: What is your current view on concordia and would you buy this stock today? Thanks and wishing you a Happy Easter Clare

Q: I hold a lot of health care stocks including Medtronic, St. Judes, J&J all of which allow me to sleep well at night.
I will continue to hold Concordia with avg price about $40 and I own several small caps including Knight Ther. GUD. and Extendicare.
My question is whether I should replace Merck and / or Pfizer. Both pay great dividends in my RRSP. I am looking for overall return but would be willing to give some of that up as I favor safety. Stay with these two or should I consider one of Mckesson, Stryker, Zimmer-Biomet (I like the wide moat with these latter two) or Gilead. Looking at least 3-5 year holds. Thanks you as so many of your other answers have helped me with my portfolio. Please use as many credits as you feel appropriate.
Tulio

Q: A two part question. Nice reaction to earnings. Do you agree, and what if anything stands out to you? Secondly (Ok maybe thirdly), in reading the transcript of the conference call, the CEO Jonathan Ross Goodman alternates between taking a very serious tone and being something of a jokester. Is this his play book from the Paladin days? And is he really that confident in his role? Thank-you, as always.

Q: In your Mar 23 response, you indicated guidance was key...so I scanned their 2015 AR looking for guidance. I expected to find some 2016 goals and a CEO signature. Only found the Executive Summary...where the only guidance is they "expect" to de-lever by paying down some debt...& unsigned. No commitment or targets there. Your thoughts?

Q: Can you please shed some light on why CXR is down 8% since the call this morning? I thought the call was positive and it helped to break the correlation to Valeant's business issues. What on the call is being interpreted so negatively by the markets? This doesn't impact my decision to hold long term as I got in at a very high price, just trying to educate myself on market moves. Thanks again and again...John C.

Q: Hey

Just a question on Phm. I'm holding for the next quarter results to see how things are going but does it not seem to be trading awfully strange. As if it's being held down at these what I perceive to be very low levels? There's been some crazy talk of a potential sale do you think that's a reason it's remainly at such low levels? Finally if you don't mind what do you think of Concordia now. I took first position at 35 last week on drop.

Q: What are your thoughts on Cxr's earning call? Have you noticed any red flags/ or view this company a strong buy. Please also comment on their debt management plans.

Thanks
Febin

Q: I noticed in your question/answer dated Mar 16/16, you talk about the quarter report, but I'm sure you sent me an email saying Mar 21/16 when the quarter report was coming out & CXR on the 23. Question: Could you give me the results for both companies.

Q: Peter et al.

What do you make of their earnings results released today? Did they beat estimates? They showed a loss in earnings due to acquisition charges. Was this expected? EBIDTA was good from what I see ($120M). Revenue was good as well as far as I can see. Is this still a long term hold?

Regards,


Brendan

Q: Please comment on their latest quarter.
Include debt/adjusted ebitda ratio.

Q: your thoughts on chh please

Q: I hold JPM and INVN in my US portfolio. INVN has not done much and JPM seems to be too dependent on the Fed.
What is your opinion on these two stocks and would I be better off selling these two and buying GILD.
(also own BRK.B, CVS, INTC, IWO, QQQ, VIG in my US account)

Thanks