Investment Q&A

Q: I have started building a position in this fund in my RIF-type account mainly for an income stream as I am retired. Although it is small, it has the major healthcare companies in its portfolio.

Is this the type of fund which you would add to, working toward a full allocation of +/- 5%?

Thanks...

Q: Hello Peter & Co,
9.5% of my RRIF portfolio is in Health/Pharma, consisting of CPH, CXR, GUD, RX and VRX; I also have a position in PLI in my TFSA.
Would PHM be a worthy addition or perhaps a worthy replacement for....which current holding?
Thanks,
Antoine

Q: I am a bit perplexed with CRH's share price performance post what seemed like a very strong quarter. The Company reported in line with consensus estimates yet the share price has lagged its peers? What are your updated views of CRH? Have you met management? Thoughts on the business and stock would be greatly appreciated. Is this a name you would consider picking up coverage of?

Q: PHM ANNOUNCES EXECUTION OF LETTER OF INTENT TO ACQUIRE A NATIONAL BUSINESS HEADQUARTERED IN THE SOUTHEAST WITH $40 MILLION IN ANNUALIZED REVENUE AND $13 MILLION IN ANNUALIZED ADJUSTED EBITDA

Q: IS THIS GOOD ? ARE THEY GETTING AHEAD OF THEMSELVES ? CHEWING OFF MORE THEN THEY CAN EAT?
OR HAVE THEY THE CAPACITY TO INTEGRATE SO MUCH SO FAST
THANKS

Q: There seems to be a lot of interest in this company from subscribers and I suspect this company has a lot of coverage by institutions and professional investors. My question is, if that is the case, is this a company that retail investors should invest in? What edge can they have? It seems to me that one would only want to invest in small or micro cap companies if one stood a good chance of making outsized gains. That typically means buying these companies before they get noticed.

Q: What has happened to this since you recommended it on BNN? Seems to have tanked!

Q: What are your thoughts on PHM's Q2 results released today?

Q: Do you still expect modest growth from PFE into 2016? What might the impact of the strong US$ be on earnings and results? I have held it for several years for the dividend mainly. I would like to buy WSP instead and know this is apples to almonds, still....your opinion please and thank you.

Q: Hi Peter and team. As always I value your opinion. Presently I have the following health/bio stocks. GILD (US),XLV (US), GUD,PHM,CPH,CXR = 8% of my portfolio. I have just added CPH + CXR.Unfortunately both of them seem to be correcting as of late.
Questions:
(a) would you swap/change any of the present holdings or %
(b) Is the sector overbought and correcting or?

Q: I see today that Credential Direct has listed Knight Therapeutics(GUD) as bearish in todays alerts. todays's closing was 7.75. and Credential alert is 5.10 - 5.60. Would you recommend selling at this point or holding. Thanks. Ernie

Q: I'm wondering what's happening to Valiant.The company seems to be silent, and the stock is tumbling.

Q: Just reviewed your question with Interest dated April 24/15. Why is there so much volatility here, and seems to be on a downward spiral ever since the last high.
Can you please provide a detailed explanation.
Also I believe earning report in coming up in Mid May
Thanks
Rick

Q: Hi guys,

I've been noticing that healthcare stocks are all down big today and part of last week. Names like Concordia, Actavis, Biogen, and smaller names like Nobilis, Patient Home and Convalo are down as well. Is this part of a sector rotation with people rotating out of a hot sector maybe to get exposure to energy with the recent run up in oil?

Thanks,
Jason

Q: I am fully invested and therefore must sell a position in order to buy a new position. I am considering selling LMP, WCP and GUD to raise funds to buy a 5% position in CXR. I am hoping the trade will reduce my risk somewhat and increase momentum. Would you please comment. Thank You

Q: Hey Peter & Team,

One of the news letters I receive had this to say about PHM. To me Fabrice Taylor makes much sense and goes directly to some of your comments on today's answer in our forum.

Post it if you think it worthy of such...


I spent two hours with Michael Dalsin (of PHM, Convalo and Inspira fame) in Los Angeles last week and got a very good update. I also spoke to him today.

PHM stock, we can see, is not immune to the laws of valuation but I took a small piece of the $1.50 financing (despite having sold all my stock at $1.20 after a 2,400% return). I wouldn't call it a value stock here but I note that insiders were net buyers of stock lately and the story is better today, so I think you can put bids in and let the sellers come to you.

Using existing cash (i.e. not including the financing) I believe the company can get to EBITDA (through acquisitions) that would give it a valuation of about 15 times today, which, again, is not a value stock but isn't as crazy as 30 times.

I think part of the selling is from investors who bought the $1.50 financing, so they’re selling their free-trading stock. That suggests that $1.50 should be roughly the floor.

The oil price also hurts PHM and other health stocks when it rallies, as it draws investment money out of health care and back into energy shares (and pushes the Canadian dollar higher, which cuts into PHM’s profits since it earns money in USD.) But I don’t think the Saudi plan was to cut the price of oil in half for six months. It was, and is, to crush the U.S. shale industry, and that still hasn't happened so I don’t expect strength in oil prices.

There were also rumors that PHM would be banned from cross-selling, which is simply not true. Management would have heard of any move in this direction before the public (or any short seller) and they have not as of today.

Much of the same holds true of Convalo. Put in bids and let sellers come to you at as low a price as possible.



as always... thanks for all you do

Gord

Q: Patient home monitoring and NHC hit new highs on Monday and by Wednesday they had pulled back approximately 25%. ITrade indicated that companies like such as those that grow by acquisition - there are pros and cons of companies that grow by acquisition. A recent BNN guest indicated there are smart money people like people who appear on BNN and have newsletters. Then there are dumb money people -- (me) -- who watch BNN for advice and subscribe to the newsletters. Bruce Campbell BNN regular from Alberta has recommended these practically every time he has been on. Would the smart money people have been getting out of these positions when they hit new highs a couple of days ago and the dumb money people like me still have them?

Q: What is your opinion for my sons RDSP account

Q: I don't mind holding a stock through expensive valuations the same as I don't mind holding a stock below my buy price as long as there is a high degree of predictable, repeatable business and growing earnings per share.

With the above being said, I'm trying to figure out how predictable is Concordia's earnings per share growth over the next few years. I see next year's eps estimates are around $5.50 per share. What do think the chances are of cxr hitting this target and going forward how predictable and repeatable is their business?

Thanks.

John

Q: I see PHM is down more than 10% today, CXV is down 13%, Noblis down over 5%, and Concordia down substantially, as well. I'm wondering what is going on this up-market day, and also, what you think of the comparative gains and risks of these types of companies vs big American bios like Amgen, Biogen, Celgene, and Gilead.

Q: Recent great run to $2.01 on 4/27,but since then had declined sharply with a inter-day low of $1.65 today.Any news?I bought a small portion @ $1.73.Is this a entry point to average down.Thanks a lot for your usual great services & opinion