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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: Good morning 5i

I am wavering between these two. I already own some abbivie. But I hesitate because it has shot up recently. I know you favour it. But I have seen several people lately, today Brian Acre, leaning towards bmy. Here is the reasoning of one such person:

The company has a strong pipeline of new drugs, but also a lot of patent expirations for its big existing drugs coming up, which means the company has to effectively rotate its portfolio of revenue-producing drugs in the coming years. To offset that risk, it is priced very cheaply, with a single-digit price/earnings ratio and a solid dividend yield. I think the current price offers a good accumulation zone.

I am wondering about your different approaches. Would it be that you favour growth more and they are looking for safe income?
Thanks as always
Read Answer Asked by joseph on March 21, 2022
Q: I was wondering if you could provide any commentary on the newly spun-out company, ZImVie (formerly from Zimmer Biomet). I am familiar with their dental products - they are quite good, and focus primarily on the implant space (including implant fixtures, prosthetic components for tooth replacement and bone regeneration materials), rather than a more diversified product line throughout the dental space. I have spoken to a representative from the company, and my limited understanding is that it seems likelier that they plan to stay focused in this segment of dental health for the foreseeable future.

My question would be as follows: given the limited amount of time they have existed as a stand-alone company, can enough be gleaned from what is publicly available to make an informed decision regarding their longer-term prospects? At this point, I only have the worm’s-eye view (I use their products and like them, as well as their clinical support system), and I could really use a bird’s-eye vantage point. Thanks so much, and I look forward to reading you comments!
Read Answer Asked by Domenic on March 21, 2022
Q: Hello,

I'm looking to buy 4 or 5 US medical stocks for a long-term hold (5+ years) with an above-average level of risk tolerance.

Could you please rank the stocks I've listed, and indicate if there are better choices.

Thank you!
Read Answer Asked by Barbara on March 15, 2022
Q: Hi. I still like both companies (veev,gh) but am going to sell for tax loss reasons and that they total between them 3% only of my portfolio. Am looking to consolidate into a single health care stock to go along with MDT which I already own in my portfolio. I like my positions to be at least 3% and not two smaller positions. Any suggestions. I was thinking ILMN. If you like ILMN please let me know why and what sets them apart. Thanks
Read Answer Asked by Paul on March 15, 2022
Q: In your response to Marco's question on March 11 you mentioned you felt there were better opportunities in the US. Could you mention your top choices. Thank you.
Read Answer Asked by Michael on March 15, 2022
Q: You used to be quite positive on GILD in response to subscriber questions asking for recommendations in the US Healthcare sector. Have you given up on the GILD turnaround story? At what price would you buy in?

Now, your top choice seems to be ABBV on the basis that it is performing better and your belief that Humira patent issues are well-known and baked into the stock price. However, ABBV is trading at an all-time high (not just a 52 week high) and GILD is trading at a price that is a 52 week low and lower than its closing price in 2013. Which stock has the better risk-return profile and why? Even if you think ABBV is the better long term investment, I am still nervous buying in at all-time high prices - what would be a good entry point on a pull-back?
Read Answer Asked by David on March 14, 2022
Q: Do you think it is worth continuing to patiently hold NVTA in my RSP or is it time to sell ? Of course with no tax loss available for an RSP.

I thought the NVTA Feb report and guidance was encouraging.

Also, do you see NVTA moving to profits in the next couple of years, or at least convincing investors that growth is sufficient to entice 'growth investors' while waiting for eventual profits.

Thanks!
Read Answer Asked by Robert on March 14, 2022
Q: Good Morning Peter & Team

Have held ABBV for over a year now and like everyone else have done very well while enjoying a good dividend along the way.

Listened to Gordon Read this morning on Market call. He mentioned one drug which they have done very well with Humira, will be coming off patent within a year opening the door to generics. Would you agree this is going to hit their cash flow which could result in some disappointing results?

Would you consider ABBV a sell/hold/buy right now? If its a hold, when would you consider moving on? And lastly, Are there any alternative options you would recommend in place of ABBV if in fact moving on might be the recommendation?

Thanks for all you do.

gm
Read Answer Asked by Gord on March 11, 2022
Q: Please comment on the potential of these biotech companies. Are some of them a good buy at their current prices?
Read Answer Asked by Imtiaz on March 09, 2022
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