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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: In your Feb 7 response to Jerry on PRN after referring to recent strong momentum you say “markets obviously think there is potential here, but the company now needs to start delivering on that potential.”

I would argue that PRN started delivering on the potential long ago – the company received FDA approval Aug 2019 after a successful clinical trial; PRN successfully listed on NASDAQ last fall; the company announced in early January this year a deal and partnership with RadNet, the largest network of outpatient imaging centres in the US; and recently PRN raised US$ 40 million in an equity financing and retired all bank debt ahead of schedule. PRN is now well positioned to scale the business without further dilution.

I recognize there remains commercialization risk and there is reimbursement risk and revenues are essentially non-existent at this early stage but what we have here is a very experienced very competent management team that has done it before with NOVADAQ. Significantly, the CEO Arun and his team are not doing this because they need to money. They will not rush it they will do it right. I think you have mentioned in the past that this is one of the best small cap situations to invest in – assuming you can deal with the volatility and risk.
Read Answer Asked by James on February 09, 2020
Q: Would you consider PEP a buy today? They seem to have done a lot of work on making their operation more efficient and are looking at greatly improving their EPS in 2020 ( EST $5.96). I do not have anything in the Food industry in my portfolio .Is there another company(ies) in this industry that in your estimation be a better choice.
Read Answer Asked by shirley on February 09, 2020
Q: Hi 5i Team;
I having been following Pender Funds and am wondering what you think of them? I was thinking of their Pender Value Fund class F for some long term growth in my TFSA, as well as their Pender Corporate Fund Class F, for some stability in the same account or my partners TFSA. I’m interested to hear your thoughts in general on these funds, if the mer is worth it, and if they would be appropriate for a TFSA? Would corporate bonds be an okay investment right now?Thanks so much!
Read Answer Asked by Pat on February 08, 2020