Investment Q&A

Q: With the volatility happening in Healthcare stocks, can you recommend a Canadian ETF that covers the US Healthcare Sector? I think ZUH is one, what is your opinion on this ETF, are there better ones out there?

Thanks,
Paul

Paul

Q: Andrew McCreath on BNN this morning had some very negative comments on CXR's debt in relation to being forced to reprice its drugs. How do you view this potential problem?

Q: Based on today's market trading of Concordia shares versus Valeant, ie Valeant shares are recovering somewhat today while Concordia is maintaining its downward spiral, you have to wonder if the market thinks that the share sale will not be finalized tomorrow or that the terms of the sale could be renegotiated. What is the probability of this happening, and if so, what happens next? A second related question has to do with the EPS for Concordia assuming that the deal is finalized. I have read a research report that has EPS around $8.50 next year. Do you concur?

Q: What do you make of Prometic at these prices. Has anything changed with the company or their plans?

Q: Although most of my holdings are blue chip dividend payers, I decided to take a position in healthcare stocks several months ago and bought PHM, CPH, and GUD. I'm considering tax loss selling at least the first 2 of these and buying Concordia. Since the current move in healthcare reminds me of uranium stocks 10 years ago, I wonder if you feel it is worthwhile to stay in the sector.
Your insight is always appreciated.

Q: The healthcare and biotech stocks have been hammered badly, would you distinguish them from the retirement residence ones like CSH.un, EXE, SIA and NWh.un? I am looking for dividend and capital appreciation, would you rate the ones above, perhaps, suggest others.
Many thanks, J.P. Burlington

Q: I am down almost %50 on this stock. Do you see any upside in this stock?

Q: Jason Donville not long ago was on BNN and CRX was one of his favourites. He will be on BNN shortly and people will ask him about Concordia and he will probably say I got out of that in mid Sept. at $117.00 because he didn't like the idea of them issuing all the shares. By the time I was aware of this share issuing thing with Concordia the stock was under $100.00. Is there any place that people can keep up to date on movements these companies are doing to cause the stock to go down? Thank you. Dennis

Q: Not a question but two comments. Thursday CXR announced a bought deal at $65, a discount OF 10% - and the issue was oversubscribed.
And now it is not just Hilary: Democrats in the U.S. House asked to subpoena the company (VRX) for documents relating to drug price increases, the latest move by politicians seeking to curb price hikes on acquired drugs.
Concordia Healthcare Corp.’s public share sale is done and dusted.

Q: Hello 5i team

What is happening with this stock? It went from super star to super crap in 10 days. What could possibly cause such a dramatic reaction? Is it a buying opp or is something broken here?

Q: Could I have your opinion of health care in general. The selloff seems to be relentless. Is Clinton's plan going to be a cloud over the sector for the foreseeable future? Thanks.

Q: As you are aware the biotechs are taking a beating. Can you offer your outlook.Thanks

Q: Hi Peter, Not sure what is going on? It is down 25% now for today? Reading your commentary does not look it is a bad buy at this point. I own 50% at $88 and rest at $65. Not sure if I step in and by some more now(for 5 years hold)? What is its next year PE with this price point? Also do you think financing and the merger both are 'done deal'? Can you please also do a little fundamental analysis on this for us?

Q: Michael Hainsworth made an allusion this afternoon on BNN's Market Call that Concordia will be meeting with potential lenders on October 1, in NY. I can't seem to find anything on this item, including CXR's own website. How does this figure into the greater scheme of things at CXR?

Is your advice, overall, to "hold" on this stock? I was in at $49, with a full position, so the stock is still "up" for me, at this point .... but who knows for how long?

Thanks for your help.

Q: Hi Peter,

Can you confirm whether or not CXR was able to complete the stock offering at $65 before things fell apart? If not, is the financing at risk given market conditions? Would this limit CXR's ability to close on the acquisition?

Mike

Q: I am a retired, conservative dividend income investor, with a well diversified portfolio of stocks, ETFs and mutual funds (AD, AQN, ALA, BCE, BNS, CGX, CPG, RY, SLF, WCP, WEF, WSP, XIT, ZLB, RBC Cdn Eq Inc, Sentry Cdn Inc, Sentry REIT, Insured Annuities, Fisgard Capital).

I currently have just under 5% invested in health care, primarily in TD Health Sciences, with some in Alaris Royalty's group of companies.

Question # 1 = what percent of my overall portfolio would you recommend for health care?

I have been waiting to top-up TD Health, which has just retreated to its 200 mda. Is the momentum of the health care sector waning, is it nearing the end of its seasonally strong period, or is it reacting to the Hilary Clinton comments, thereby creating a great buying opportunity? Bottom line = is now the time to top-up TDB?

Thanks for your help,
Steve

Q: Hi Gang
For someone that has no exposure to biotech and in view of the sector down swing. Where would I take an aprox. 3.5% position
today ?

Thanks much.

Q: i view myself as a fairly seasoned investor, but concordia has me stumped, they are raising money at 86.50 a share, supposedly the issue is 2 times oversubscribed.
so the stock opened down friday am and proceeded to go down 22 points before rebounding and closing down 12. my question is why would anyone participate in the share issue when they could buy the stock at a massive discount on friday or even this monday-- makes no sense. i did buy more myself when cxr was down 18 but the whole experience as peter would say is wonki, was it hedge funds in u.s. sitting on cxr on friday-- i think so and certainly hilary did not help.dave

Q: Do you have any idea who could be selling 4.7 million CXR shares today in the US market? Given an average daily trading volume of 10k shares, this looks much beyond a response to biotech/pharma weakness. According to the Sept 8 press release, it looks like Cinven would have a lock-up on their 8.5M shares. Is it possible the underwriters were selling today just to exit their position on the new offering? Thanks.

Q: Just wanted to point out something with respect to your comment on NHC for Maria.

NHC does trade at 26x 2015 earnings estimates as you suggested, but this number gets cut in half for 2016 (i.e. ~13x P/E). Is it really fair to look at 2015E for a hyper growth company in October ? I don't believe investors would value a growth stock like NHC on 2015 figures...especially when they set to double their EBITDA and earnings for 2016.

When one compares 2016 estimates, NHC is actually cheaper than DR. DR has earnings dropping from 2015 where NHC is set to double.

Please correct me if I'm wrong, but I don't find your comparison of one being expensive vs. cheap accurate at all.