Concordia International Corp (CXR.TO)

He started selling his holdings early because his gains were so colossal. This is the leader in the star sector of healthcare in Canada. Interesting drugs. Will be making more acquisitions. It will probably keep going on up, but if you own, consider taking some of your profits.

Had a fantastic run, partly because there is such a scarcity of healthcare stocks in Canada. Trading at 27X EBITDA for this year and about 16X for next year, which are pretty pricey valuations. He would use it is a classic example of a “crowded trade”. He avoids these types of stocks and prefers where there is only 1 or 2 analysts covering, so you can actually unearth some value in it.

This has done brilliantly. They did some very, very interesting acquisitions. He has taken a bit of profit out of his holdings. His favourite in this sector is Knight Therapeutics (GUD-T).

Management team has pretty well done everything that they said they would. They continue to drive the numbers. There is probably more in it from an acquisition standpoint. Has a small dividend as well. Trading at 28X earnings, which is not cheap, but is growing at a fairly significant rate, and that ratio will come down over time.

Has been drifting sideways in the last few months. Management has been working on some more deals. Just made a deal where they acquired an epilepsy drug. They are hoping to put in a price increase which means there will be increased EBITDA and earnings. You could probably see a dividend bump down the road. Also, feels there will be more acquisitions, which is management’s forte. Yield of 0.95%.

A growth by acquisition story, buying orphan drugs primarily as well as having an offshore tax so that taxes can be reduced dramatically. At $28, he feels it is anticipating the next acquisition which put you in the little bit of danger territory. Prefers Merus Labs (MSL-T) whose valuation is less than half of this.

Continue to be a growth by acquisition story. Buy drugs that are just coming off patent. Have a similar structure to Valiant.

Short this company. Trades at 12X EBITDA to Cash Flow. He would exit this and Buy Merus Labs (MSL-T). (See Top Picks.)

Buy drugs that are close to off patent and will have generic pressure. They get their payback before it becomes a generic. Because of tax structure, it flows to the bottom line. Anticipate a dividend of $0.30 a share or 20% on cash flow. President from Biovale.