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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: Gritstone Bio (GRTS) is a small, early-stage biotech company to which Gilead Sciences has provided some funding under an agreement announced on Feb 1, 2021:

"Under the terms of the agreement, Gilead will make a $60 million payment at closing, consisting of a $30 million upfront cash payment and a $30 million equity investment at a premium. Gilead will be responsible for conducting a Phase 1 study for the HIV-specific therapeutic vaccine and holds an exclusive option under the collaboration to obtain an exclusive license to develop and commercialize the HIV-specific therapeutic vaccine beyond Phase 1. Gritstone is also eligible to receive up to an additional $725 million if the option is exercised and if certain clinical, regulatory and commercial milestones are achieved, as well as mid single-digit to low double-digit tiered royalties on net sales upon commercialization."

GRTS share price has established a baseline after falling steadily since the funding announcement. Presumably Gilead did some due diligence before investing its own money, but the stock price could go to zero if Gilead walks away. However, it could also soar if the trials are successful. Would you consider GRTS to be a worthwhile speculative buy? What has been your experience of investing in early-stage biotech companies that have drawn the attention of Big Pharma?
Read Answer Asked by David on July 07, 2021
Q: Few of my international holdings pay dividends and in trying to correct that, I thought of adding SDIV as a new holding. I have the following questions or concern:
1. Many companies held in the ETF are on not that large (for the type of internatinal business a Canadian might want to risk); and
2. SDIV also underweights quality and momentum.

Notwithstanding the above concerns, would you say the ETF is worth adding as part of one's holdings outside North America? Please comment on SDIV, but if you have other ETFs you prefer, kindly advise). Thanks
Read Answer Asked by Adam on July 07, 2021
Q: My KXS shares have recently doubled and haVE exceeded my arbitrary 5% holdings threshold . I have a long term view of my tech holdings but wondered if you think selling off some KXS for Topicus or LSPD (or both) is worthwhile for some added growth for the next 5 years?
I am not adverse to holding onto to KXS if you think it could revisit its historical high in the next 12 months.
Some shares are in a TFSA and some in a registered account.

Thank you for your continued support.

Kevin
Read Answer Asked by Kevin on July 07, 2021
Q: Ah! The widow and orphan stock.
What do you think? After all these years of never being able to gain traction, is now their time?
Just like nvdia when it did nothing for years and then became the darling of the street. Been burnt twice with Sierra but I sense a huge turnaround with 5G or a buyout!
Peter: your opinion! Thanks.
Read Answer Asked by Helen on July 07, 2021
Q: Read in the Post recently that BMO and NA may be best positioned to increase dividends, while BNS may not. Is that also your consensus, and also possibly the reason for the slow decline in BNS ?
Thanks as always
Read Answer Asked by steve on July 07, 2021
Q: Hello 5i
We have 1.7 million in our invest accounts
500 thousand in rrsp
450 thousand in bonds and cash
The balance in 37 companies and 2 etf in a non register account
In a previous question you answer that
20 companies is about about the right number
Should We be reducing the number of companies we own
Thanks for the help
Read Answer Asked by Sam on July 06, 2021