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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: Concordia's share price has been sliding steadily recently which I find surprising given that the company is in play ( I assume)based on any public information that we have access to. Also with the earnings report expected in a week I would assume that the company will have paid down some of its debt. Both events I thought would be positive for the shares. So why are the shares dropping as much as they have especially if Concordia has formed a committee to evaluate possible buyers? The market is acting as if that possibility has been ruled out yet there has not been any announcements to that effect. So how does one rationalize current share performance with a possible buyout that typically would stabilize share prices? Or does the market/insiders know something that we do not know? Your thoughts please. Thx.
Read Answer Asked by John on May 06, 2016
Q: I purchased 50 shares of ENL at 36.5 Canadian considering it was very cheap on a valuation basis. Looking at their earnings they will be earning almost US 4.9 per share in 2016. After hours the stock is down to USD 20. This price makes it around 5 times earnings. Do you suggest I bail out at the market in the morning or should I keep holding for next several months for the price to recover.
Read Answer Asked by Imtiaz on May 06, 2016
Q: Hello Team,
Would you prefer Pfizer or Bristol Myers in this space, or, given the electioneering going on in the U.S. would something like Walgreens be your preference in the Health Care space?
Thank You,
Barry
Read Answer Asked by Barry on May 04, 2016
Q: Not a question, but a comment, further to Valeant pharmaceuticals. Aren't they the company that bought up off patent drugs and then boosted the cost by a couple thousand percent, thus by passing the cost of R &D, but still charging the exorbitant prices they claim are necessary to make back R &D? I'm stunned nothing seems to have been done about this.
Read Answer Asked by M.S. on May 03, 2016
Q: Good morning,

Regarding Concordia Healthcare, it seems to be a darling among analysts on BNN as one of three top pics with increasing frequency. Assuming that these fund managers are adding to positions and assuming that there is a consensus both that the stock is cheap and that a takeover is likely, what do we take away from the continually falling price?
It would seem that the company is a buy based on valuation and if not for that reason, then the potential for a premium to be paid during acquisition. Three parts to this question:
1. Do you see it drifting lower until concrete news about a buyout (or not) emerges?
2. What do you see it as being worth if acquired?
3. If the revenue is growing and the debt levels are high but cash flows allow it to be paid down, is there something else causing the price to remain compressed?

Thanks
Read Answer Asked by Tim on May 03, 2016
Q: Hi folks,
I took a small position in Prometic Life Sciences when it was at $2.70. It's gone up quite a bit since then and I've been waiting for an opportunity to buy more. Considering doing that this week but am now looking at Concordia given the big drop today (I was considering before the possible buyout news but thought I'd missed my opportunity). Any information on the 9% drop today in CXR? Thoughts on taking a half position in each this week? I have no other pharma/medical positions so my exposure to the sector is limited and the positions would be relatively small. Thanks.
Read Answer Asked by Jordan on May 03, 2016
Q: my ACB is $56. CXR is not a big part of my portfolio and in my TFSA. I was going to buy more on the low 30's then the Blackrock news came out. the price has now come back to $36/$37. My planned purchase would bring my ACB down to $46 at the current price. Am I throwing good money after bad? If CXR is sold now does it get more than $65/share? Or less because of the debt load? If you were a potential buyer what would you pay? What is your advice? Thanks
Read Answer Asked by Richard on May 02, 2016
Q: Valeant was a company showing everyone that is was not a well run company with no R&D, and a CEO focused only on expansion and looking good to the stock market. And funny accounting.

But the market, Wall Street, Bay Street and most investors willing overlooked it!! Including 5iResearch.

Podcast: As identified from minutes 0:35:10 to 0:45:10

http://www.podbean.com/media/share/dir-4scbv-17fda94
Read Answer Asked by Stan (1) on May 02, 2016
Q: Hi Team, which one to choose for growth and some income, in the U.S. Health Sector, AmerisourceBergen, Baxter International or Johnson & Johnson. Thanks! Sam
Read Answer Asked by sam on April 29, 2016
Q: Hi Team,
I am willing to take a full position in Endo Pharmaceutical, it seems it has been overly punished by the market due to the similarities with VRX (and similar business model) I suppose.

I see limit downside risk and it is, I think, a potential takeover candidate at the current price level (similar to Concordia).
Earnings are coming soon, so I was thinking to take my first half position before the earnings and the rest of my position after but I am not sure... what is your opinion?

Bye the way, congratulations for the latest improvements on the site!

Michel
Read Answer Asked by Michel on April 29, 2016
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