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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: I know members have started to raise questions about Knight Therapeutics' cash balance and when they will use it to make a large acquisition.
I am reminded of this YouTube video from 2014: https://www.youtube.com/watch?v=YCps-WZB7_U

Jonathan Goodman was quite clear when he made this speech that it could be 10-15 years before he investors could see big results.

My main questions are: realistically, how much pressure can shareholders place on the company? Is it possible that impatient shareholders could push GUD to make wrong move/acquisition with the cash?
Read Answer Asked by Mike on January 15, 2019
Q: Hi team,

ROKU crashed last fall with a lot of tech. It is a very volatile stock, even for tech, as it reacts to every headline. I bought a small position again a couple of weeks ago, before the CES, expecting some positive announcements. There were several, including active users and streaming hours up nicely, a new partnership with Westinghouse TV and a new partnership with TCL on 8K TVs. Then, as usual, the rally was cut short by Andrew Left with a negative tweet about it regarding further AMZN inroads. He keeps going long or short on ROKU, I assume just after he bought or sold short.

Cord-cutting keeps accelerating, and ROKU has a strong position but in a highly competitive field with AMZN, NFLX and now Hulu gaining traction. It is also viewed in the M&A picture for a bigger tech/media player this year. What are your thoughts on it at this point?

Thanks again,
Dave
Read Answer Asked by Dave on January 15, 2019
Q: Happy New Year to you! I am considering my TFSA strategy. I hold a RRIF which means that I must take out a certain percentage of it every year. Since I don't need the cash, I prefer to transfer some stocks in kind to my TFSA, but I am not clear which stocks make the best candidates to do this. I know that you think growth stocks are best for a TFSA, but I am not clear on what a growth stock is. (What I thought were growth stocks all went down!) Are dividend payers better in a RRIF or TFSA? American stocks? Oil stocks? Precious metals? Consumer discretionary? It seems to me that growth stocks are more volatile. Am I correct in this? Thanks for your advice.
Read Answer Asked by Pat on January 15, 2019
Q: Conservative, retired dividend investor. I've held Sentry in my Cash account since 2012 and sold 25% in 2017. My current weighting is 3.8% of my equity holdings. I didn't mind paying the hefty 2.44% MER when it was performing well. The last few years I have periodically compared it to ZRE and XRE, hoping for a turn around but my patience is running out. Now to be fair, Sentry reconfigured their REIT Fund a few years back to make it a global fund. Therefore the comparisons are a bit or apples vs oranges.

For the 1-3-5 year periods as of Dec 31/18, Sentry has returned -1.5%, 2.5% and 5.7%, while paying a 6.7% dividend.

ZRE = 3.2%. 11.3%, 7.3%, while paying 5.0%

XRE = 5.8%, 10.5%, 7.0%, while paying 4.8%

Question #1 = please confirm that all of these returns include the dividend payments.

Q#2 = while I love the higher dividend via Sentry, it really is all about Total Return over the long run. Is the global nature of Sentry (diversification) worth the lower returns?

The goal for this allocation is for stability, income, then growth, in that order. I am leaning towards selling Sentry and buying ZRE, due to the equal weight allocation. There are minor income tax ramifications.

Your advice is appreciated...Steve
Read Answer Asked by Stephen on January 15, 2019
Q: The US$10 billion offer should get the share price around US$11.5. Yesterday the share price was closed at US$10.4. Is this a buy then?

Thank you so much for your advice.
Read Answer Asked by Yong Mei on January 15, 2019