Investment Q&A

Q: In response to my inquiry about Inspira's loan payments, Michael indicated they come from the US Government. Does he know if they come directly to Inspira, assigned by the borrowing Doctor, or do they go to the Doctor directly who then remits to Inspira?
Thanks for the info.
Steven

Q: Hello Peter,
Other than positive comments on BNN, what is driving the stock prices higher everyday this week for crh medical, constellation software, and patient home monitoring. Do you think investors are just using BNN as a trading vehicle for stocks as opposed to looking at long term ? Also if you had prioritize your investments between constellation, Eng house and CGI group, how would you rate those? I was thinking 5% weight for constellation, 5% for Eng house , and 2 percent for CGI group. Please provide your view. Thanks again.

Q: TRX took a nose dive today on no reported news that I could find. There is talk of a new inversion law possibly in the US. Pozen the co. TRX is merging with had an up day today. Could you explain to me how this is unfolding. Thanks

Q: Over 9 million shares sold Friday, institutions stepping back in?

You figure institutional selling is all but over?

Cam

Q: It is my understanding that most of the payments to inspira will be from insurance co. or obamacare. So little risk. On bnn yesterday you were talking about savaria and said the you do not officially cover the co. I do not really understand how it can be in the portfolio if it is not properly researched ie covered

Q: I completely understand Inspira is early stages and risky. There are three potential hurdles that I don't completely understand:
1) Do they attach some sort of lien on the payments due to the lending Doctors from the US Government?
2) If not, and they have defaults, would that influence their bankers with regard to amounts loaned and would they have to borrow at higher rates or would the banks eventually cut them off?
3) What are the odds of a policy change by the Government to pay quicker and eliminate the need for Doctors' borrowing?
Finally, how would you value this company proportionate to their loan book?
May I add my vote of confidence for your service which is prompted by some negative comments. Members get 24 questions directly to two seasoned portfolio managers with no conflict with the companies they discuss. That's about $5 per question! No one is perfect but if members listen to the message, which is diversify, remember why you bought the company (hopefully, not because "Peter said so"), don't panic and stick (mostly) to quality, growing companies, you will make money over time. I still can't believe I can ask these questions for $5!! I have paid as much as $900 per year for some sites and they won't even talk to you. 5i is worth multiples of what they charge.
Thanks for letting me say this.
Steven

Q: Hello,
My first question.
Why are these healthcare related stocks, mostly doing business in the U.S., with home offices in California, listed on the Vancouver venture exchange?
thanks, Len

Q: Been awhile since last comment on this,could you provide any further update or opinion.

Q: Team,

*Please count this as 4 questions*

Can I get your updated opinion on the following 4 US companies, all of which has had recent dips / corrections.

I own an avg. position in each as part of a balanced portfolio, thinking of adding more to each name, do you have a higher degree of confidence in any of these names more than the other? Thanks.

1. UTX
2. CSX
3. MRK
4. PG

Q: Hello, Pretty much every healthcare stock is up today at least 5 percent, some over 10 percent. Is the healthcare crash over now and is it in recovery? I really want to add to some of my healthcare positions but wanted to wait until we were in a rally to prevent further losses. What signs should I be looking for to distinguish between a short term blip and an actual recovery? Where do you see health care going in 2016?

Q: Hi Peter,

I'm calling on your many years of trading expertise for this question.

In 7 days CXR is up 33%. Is that short covering, a dead cat bounce or do you think the stock has bottomed?

In short would you take a full portfolio position on CXR at this point?

Thanks

Q: This is an article that might be of interest to members.

http://www.theglobeandmail.com/globe-investor/investment-ideas/patient-home-monitoring-in-a-steep-decline/article26868723/

Q: Hello 5i Team,

Could you please give me your thoughts on Sanofi as a five year hold? I do not presently have any pharma exposure.
Thanks,
Richard

Q: On Market Call you recommended PHM as a top pick. You spoke positive of CXV and LND. Why is PHM a better investment than CXV or LND?

Q: In your opinion, is Valeant an outright "sell" at this time? It's going nowhere fast.

In your comment to Gary, on November 6th, you stated:

"The problem is that VRX is no longer trading on fundamentals, but on emotion and rumours. ... it is likely worth (worst case) $100 US. This is not our number, but from a good report from Mizuho Securities looking at worst case scenarios."

Given that the $100 US target price is not your number on the stock, would you nonetheless concur, or would you assess it higher/lower? (I know you don't believe in target prices, but at some point there is the essential value of the company that speaks out, and affirms its fundamental worth.)

For someone with a one-year time frame on this particular stock, do you think it's worth hanging on? I have a 28% loss and it is only 2% of my portfolio. I would like to recover that loss and move on, whether through Valeant or some other means.

(I have other, longer time frames on other parts of the portfolio, but was using this as my "Mad Money Corner".)

With everybody piling on Valeant, including lawsuits, shorters, staff desertions, things are looking pretty grim, and it's no longer possible to assess what is real and what is not.

Would this be a good time to take the "mad money" and run? You have lots of good choices in your growth portfolio, and I was considering turning to one of those.

Thanks, as always, for your great service!

Q: Canadian Regulators are concerned about bans that cxr has imposed on the resale of their shares 14% stake to private-equity firm Cinven, who inturn resold to 60 activist firms.
Going forward will this effect the future stock performance
Thanks as usual.

Q: Between CXR or GUD for a full new position, what would you recommend? Thanks

Q: Can I please have your candid and honest opinion on the following which I came across recently

"Concordia Healthcare Corp. has essentially been forced to turn its entire business model on its head, according to a Bay Street analyst.
Up until September, the Oakville, Ont.-based pharmaceuticals company built its business by making a series of acquisitions that bumped up profit and revenue – in much the same way Valeant Pharmaceuticals International Inc. did. That formerly successful strategy is now in serious doubt.
“The re-valuing of the sector, coupled with Concordia’s substantial debt load, probably means the end of its financial arbitrage as a means to continue its non-organic [growth] for the foreseeable future” Doug Cooper, an analyst with Beacon Securities, wrote in a recent note to clients.
Concordia’s heavy debt burden stems from its recently completed $2.1-billion (U.S.) acquisition of Amdipharm Mercury Co. Ltd. (AMCo). Concordia was forced to fund a higher portion of the acquisition than planned with debt as opposed to equity. Only $520-million came from an equity increase. The firm had the rotten luck of conducting an equity financing smack in the middle of a stock market storm in the pharma sector. In an interview with The Globe and Mail last month, Mark Thompson, chief executive officer of Concordia, confirmed that the firm didn’t raise as much equity as it had hoped and was forced to make up the shortfall with debt.
“This [heavy debt load] has forced the company to change its strategy from a ‘growth-through-acquisition’ story to purely an internal growth story, driven by the new product launches at AMCo. ... With no imminent acquisition catalysts, we believe the shares will be range bound.”
Mr. Thompson told The Globe that the only acquisitions the firm will consider for the foreseeable future will be small, so called “tuck-in” acquisitions."

I have a current 6% position and considering some tax loss strategy. I reviewed you blog posting
Thanks

Q: Could you please provide an update on CTH and comment whether an early stage investment would be more appropriate in CTH verses GUD.
Many thanks, Nancy

Q: Pfizer is planning to merge with Allergen & move head office to Dublin ---Inversion Tax laws in US --come into play . Question ---How likely this will occur & do you think it will affect the deal & stk $
Thanks ---don