Investment Q&A

Q: What do u think of this stock for a 2 year hold in a 2.5% position?

Q: Original Question re PHM sent April 4
No answer received, so I am re-sending. Would 5i please respond?
Please see below:

Member feedback re PHM experience. Please publish in the Q&A:

In the 5i email update to members today, April 4, it is conveyed that it is now time to remove this name from the Growth Portfolio. From all that I have followed in the 5i Q&A, this is the first clear research opinion from 5i to be out of this position well after we have all witnessed (and I participated) in the round trip with PHM. As recently as March 17, the clear guiding research from 5i was to stay the course for a few more quarters.

While I fully appreciate that members must take responsibility for all our particular investment decisions, I think this PHM saga gives all of us a reason to pause and reflect on when any of us could make a better judgement to bail on PHM, and other such strong “upward momentum” opportunities, to decide to step away and take profits.

In retrospect, I would wish that 51 would have given members a clear guiding research opinion much earlier to step away from this former upside momentum stock. Just as you have given a clear guiding opinion by taking out the full weighting of Descartes out of the Balanced Portfolio today citing that it has had a good run, going forward it would be very helpful if 5i would do so with other names, especially "upward momentum" stories that PHM used to be.

As a learning opportunity to share with members, would 5i consider a review your experience with 5i research, thought and opinions 5i expressed on the PHM continuing story, in order to do a retrospective analysis to share with 5i members. Are you willing to identify at what points in time there may have been sufficient reason to step away from this position while it had most of a good run intact (well before April 4)? This may provide many of us regular people a hands-on lesson to apply going forward. We look to 5i to be in our corner to provide conflict free independent research, so perhaps this may be a “real experience” avenue to learn from the pros at 5i. What do you say 5i team?

SGR

Q: What are your thoughts on this stock now? is there another you prefer in this sector?

Q: Hi 5i Team,

Do you consider Allergan "cheap" with the stock trading around at $235.00?
What is their EPS 2015, 16 and/or 17? How is their balance sheet and would you consider them one of the "better" US healthcare companies?

Thanks, Shane

Q: Hello team again,

I have been reading on this one and the question now is: In the long-term, what is the likely outcome? Is this company going to survive? I am sure no one knows but based on your experience what is the best course of action now if you bought in at 1.15? Would you average down if you were a long term investor and wouldn't mind sitting idle for the next 5 years?

So to make it easier for you: In your gut, do you feel this company back to $1.15 in five years or down to $0.15? And if the former is true how long would you wait to average down if at all?

Thank you very much indeed!

Q: Hello,

It is my understanding that you had planned to review this company over the weekend and evaluate whether it would remain in your growth portfolio. Any feedback regarding your findings would be greatly appreciated. Thanks.

Frank

Q: VRX shares have certainly been my most profitable trades since the fall of 2015 with continuing Short positions, however I have a small amount left as of today - April 1. The remaining holdings are through TSX but held in an Ontario corporation. Based on the 15 day Stop Trading Order by the Quebec authority starting today, what is your advise? Thank you.

Q: Appreciate your thoughts on recent financials.
Thanks
John

Q: The Dalsin & Greene(D & G)gong show reminds me of the wild,wild West in Vacouver,B.C. in the 1970s &1980s where promoters,lousy brokers & the Vancouver Stock Ex run amok & kingpins like Peter Brown of Canarim & Friedman(Inco fame)ruled.I had a " promoter friend" who conned me & the public including a lawyer,& was later found guilty & subsequently barred from holding office in a public co for 15 years.Every time,he travelled overseas,the stock price dropped. D& L was vacationing in Europe when they "sold" their shares into a firm of M.Decter.This started the freefall of PHM.Then they let go of management to the man.of Sleep Country.-washed their hands like Pontinus Pilate.After discovery of the Hollywood @ LND,they retired.PHM stockchase shows 15 comments & only one is a buy.The general theme is the above action of D & L.Are they trust worthy?.This is a former darling that is being avoided by most.I lost 80%$.In fact their partner in the new co.told BNN that he had sold his shares @ a Loss.Maybe there should be a class action against D & L

Q: I am interested in A CEf/ETF in the US health care sector and came across HHL.UN. It seems to be doing quite well with a high yield, but I am concerned that the payout over 2015 is 100 % ROC. I wrote the company and got this reply (HHL.UN only started in 2014): The distributions last year were all return of capital. This was in part due to the way the initial costs of the Fund are amortized over the first several years (ie. Certain of the initial IPO costs that were actually taken at the time of the IPO are for tax purposes considered expenses over subsequent years, although the actual cash cost has already occurred.)

I do not want to invest in a company that basically send me my money back. Your opinion please? Thank you!

Q: You mentioned in a response to another member that you were waiting to hear the conference call in relation to the guidance. Could you give us what you took from their guidance and conference call? Thank you.

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