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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: UNH.us has been doing well. I am reluctant to trim but to avoid personal bias I ask:
Is valuation now too high? On price to Free cash flow, it looks expensive vs. history. s PEG is ~2 but ROE looks attractive at ~24%. Is such ROE sustainable given competitive forces at play ... I worry its moat is now not good as it was in the recent --- am I wrong?
Do you think UNH will GROW its dividend?
Is debt manageable?
Read Answer Asked by Adam on March 15, 2018
Q: Hello Peter,
1. Your reply to a previous question on Stars Group was not very positive yet you indicated it was okay to step in. Please elaborate as the Russian market is a top market, "On the conf. call, TSGI indicated that new Russian banking rules may hinder growth there, one of its top markets. We would be OK stepping in with the decline.
2. Is it better to wait before adding to Shopify? I have about 4 percent position
3. Why is Square surging everyday?
Thank you
Read Answer Asked by umedali on March 14, 2018
Q: My question is twofold.
1) I am trying to determine if Spotify will be a good investment. It appears to have a lot of positive momentum; however, it has never made any money, there appear to be lawsuits, everybody in the music business is not happy, and over the years I've read on occasion that their business model is not viable (as the artists and/or studios are not properly compensated and the business model will need to change). I do not think that the music industry will ever revert to its former self but possibly pricing/offerings may need to change. Your thoughts are much appreciated on how you see this company possibly making a sustainable profit if the issues are valid. (On a positive note revenues appear to be increasing nicely, their market share is approx twice as big as it nearest competitor. BTW. I have not read the prospectus other than some articles referencing the doc. Anything else to share if you have read it?)
2) If I do want to acquire some shares, how do you proceed? I have read that this is not going to be an IPO but a DPO. This is what I read "In February 2018, Spotify filed for a direct public offering (DPO) — a type of offering without intermediaries". I have also discovered that they will list on the NYSE on the week of April 2nd but there will not be any opening price but a suggested price range ($90-132/share). This seems like Russian Roulette, so do we take a chance and buy at any price (not an intelligent way to invest) or do you recommend that we see what happens by waiting a few days or weeks after the DPO, once things have calmed down.

We have been paying subscribers of the Spotify service for many years, probably from the initial days it was offered in Canada. It has much improved and we like it a lot.

Thanks again.
Read Answer Asked by Walter on March 14, 2018
Q: Snap-on SNA.us looked undervalued after price-weakness following its results reported about a month ago. Yet it is down 3.7% this morning. What am I missing? Fundamentals SEEM fine. I don't see fresh news today.

Is SNA a good longish term dividend grower with prospects of reasonable capital gain? Are you aware of any reason why it has kept dropping? Is debt the issue? Is it a falling knife—i.e. I am missing something important? Would you buy and why please?
Read Answer Asked by Adam on March 13, 2018
Q: I use Investorline. Help is sought in evaluating veracity of BMO-Morningstar Eq.Analysts reports: They contradict themselves:aMay 26,2017 FVE 86.00, March 13,2018 price 106.00
Feb 2018 analyst say:with share price close to our FVE we recommend not to add more
I feel these reports are not updated or not proof read or what else.???? Can you read it and comment pls
Art
Read Answer Asked by Arthur on March 13, 2018
Q: Hello,

How do you feel about Amazon's performance lately. Its obviously doing very well but do you think it will continue to perform like this or could you see a correction and price decrease in the near future? My shares have exploded and i'm glad to ride the wave but don't want to get caught in a bubble.

Do you think it will split?

Thanks!
Read Answer Asked by Harrison on March 13, 2018
Q: Qualcomm’s offer to buy NXPI is valued around $127.50. NXPI was trading at $125 a couple of days ago. It is at ~ $123.50 this morning 12 March.
There is considerable confusion over Broadcom (AVAGO) offer to buy QCOM. (I also own QCOM). There are reports today of US regulators fuming at AVGO due to alleged disregard of certain notices required by US regulators.

There are apparently also risks that China could block the sale of NXPI. I am fine keeping NXPI but not if the risk-reward is not in favor of private shareholders. Would you guess that the risk of a deal failure is higher than 50%? If NXPI is left at the altar, do you think NXPI would likely drop significantly in value--- say more than 20%--- or is it a good enough company that it will prosper on its own. Prosper means doing much better than just chugging along.

NXPI seems to be fair value even without M&A activity… Is it? would you buy more if you already had QCOM and NXPI? Would you sell NXPI? Or would you simply hold on.

NXPI seems to have an attractive business model and a good market position. Would it make an attractive target for a different buyer ... say an Intel?
Read Answer Asked by Adam on March 13, 2018
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