Investment Q&A

Q: 13.74 is pre market do i sell

Q: Is this the worst possible scenario for Concordia (CXR)...big writedown, suspended dividend, CFO resigns, lower guidance..etc. Does this constitute enough of a "change" to lead you to conclude that its time to move on?

Q: In this morning's globe and Mail healthcare is touted as the best sector to be in for 2016.
My portfolio does not not have much in this sector. What securities would you recommend at this time?

Q: I had asked on concordia with its results coming out shortly, whether the short position has been overdone and the company still has potential.

Q: Have held this for 2 years and down %50. Comments on their latest quarter and is it worth keeping.

Q: Peter, I currently own a very small position on $NHC and I'm 50% underwater. I'm thinking of doubling down, what are our your thoughts?

Thanks Valter

Q: Hi, what's your opinion on Gilead Sciences at these prices, is it a value trap or falling knife?
Thanks
Ken

Q: Hi Peter and Team,
Could you please comment on Acerus’ Q2 earnings including debt status? Does Acerus need to raise cash to support operation?
Thanks
Victor

Q: Hi Peter and Team,
Does VRX come to life? Is worst over for VRX? Is it worth to buy now?
Thanks
Victor

Q: Hello 5i team
I was curious if you thought that the move on Bristol Myers was over done and that this may be a opportunity to buy in?

Q: A year ago, Knight signed a deal to distribute 3 of Advaxis's products in Canada and bought about 400,000 shares at $13.91, a premium at the time from the Advaxis treasury. The shares tanked to $5, recovered to $8 and have jumped %6 to $14 in the past 3 days on the announcement that Amgen bought worldwide rights to another Advaxis drug and gave them $40 Million. This will help Knight as the shares appreciate but will it hurt their deal on the other 3 drugs they represent as Advaxis may concentrate on the behemoth deal with a super-large pharma co. and neglect their other products.
Knight's share price has help up well during the healthcare decline. Do you think they will one day do a big deal or continue to drip out their $600M in miniscule does? I am sure this company will be a blockbuster some day, but I may not live long enough to see it!
Thanks.

Q: I would like to increase my investment in the Canadian health care sector. I am looking for yield. What are your top recommendations? I already have enough Sienna (SIA) and Chartwell (CSH.UN). Pharmaceuticals and laboratories interest me.

Q: hi team
your opinion,please,on serona sbm.
gaston

Q: I am sure by now 5i must roll its collective eyes at the sight of another CXR question.
I don't own the stock but find it fascinating. Some analysts predict 2017 earnings to be $4-5 per share or even higher. Globeinvestor has their debt to equity at about 3x. My questions are these:
1. what is the major risk that the anticipated earnings don't materialize? gov't intervention? or is there fear that like Valiant there may be some misrepresentation on the books?

2. if debt to capital is 3x, that would mean that there is approx. $60 of debt per share, given a $20 share price. correct?

3. if they are paying an average of 5% interest on their debt, wouldn't interest alone eat most of their earnings? i.e. $3 per share would go just to interest. seems like it would take a very long time to get out of debt.

4. seems like it will be almost impossible for this company to grow by acquisition for a long time, given the environment. almost like a game of musical chairs where the music has stopped for a final time and there is no reason now to own the stock other than value. true?

Thanks for your patience with us as we try to figure this market out.

Cheers
John

Q: my cost on CXR is 23.50 . what would be my downside risk at these levels? I keep hearing about a strategic review. what does this entail and what impact can this have on the stock price?

Q: http://investors.cvshealth.com/~/media/Files/C/CVS-IR-v3/documents/02-aug-2016/2017-standard-formulary-list-of-removals-and-updates.pdf

This may be another part of the reason for the sell-off today. Nilandron appears to have been added to the list of drugs to be removed at CVS for 2017 due to hyperinflation. I'm not sure of the implications as far as the percent of Nilandron historically sold through CVS. I would assume they'd re-negotiate pricing and take a bit of a hit?

Q: Peter & Team, as to the question from Dennis today, the company needs to begin reporting organic growth in Covis and AMCO, preferably be summarized product category. We cannot wait until they cycle up against these acquisitions by end of year to see comparables; we need to know if things are better or worse from when they bought these products. And we need to know it August 12th when they report the quarter.

Reporting against target EBITDA of $610 to $640 million and Net Debt/EBITDA of 5.5x is not cutting it (obviously).

If management won't disclose product growth prior to acquisition date or if there is no constant currency growth, would that not be 5i's cue to cut and run?

Thank you.

Q: Seeing all of the questions about the big drop today and having purchased at higher levels i agree that it's a really frustrating stock. However, i read today that Taylor Asset Management (David Taylor of Dynamic fund fame) and Davis Rea (John O'Connell) actually added to their positions at the end of Q2. They seem to be looking at the fundamentals without emotion and see the value in the company

Q: Could you comment on their latest financial results.

Q: What the heck is going on with CXR?? It has tanked again today down over 16%!
Was there any News in particular that came out this morning? what is the specific reason for such a huge sell off today? I'm weary of the losses I have incurred on this position as it continues on its downtrend amidst the short sellers. I'm down over 50% and think I should throw in the towel....your thoughts on my thoughts of selling? Is there any glimmer of hope for this company in the near term?