He likes the volume recently, but expects resistance at $42.  He was disappointed that the recent rally didn’t go higher.  It has a good yield and looks like a Canadian bank where volatility is not too high.  He would use $38.50 as a stop and would like to see it test $42 as an upper breakout target to buy more.  Yield 5.2%. 

The pharma industry in the late-90s came out with social drugs like viagra, so the market awarded pharma big growth multiples. But then, these stocks came off. Problem is they were never really growth stocks and now the drug industry isn't coming out with new blockbuster drugs. GSK is developing vaccines, which is fine, but overall, he can't see the previous massive expansion in this space. Currently, the multiples are fair for pharma companies. There's also pricing pressure on drugs in the U.S. as we saw during the 2016 election.

Healthcare was the worst performing sector in the S&P 500 in 2016, but has been a strong performer this year, and this company has not followed suit. He likes that they have 3 very distinct businesses. One in HIV, one in vaccine, plus a consumer products business. The market is undervaluing all 3 businesses. If you were to break the company up into 3 separate distinct businesses, that would unlock significant shareholder value. Dividend yield of 5%. (Analysts’ price target is $45.)

This has had some serious misfortunes. The balance sheet is very stretched. It may be forced in making an acquisition of a Novartis (NVS-N) business which it is contractually required to do. The pipeline is fairly weak. Thinks it will eventually survive, but there is a possibility of a dividend cut. There are better places to be. It might be better to look at this a year from now.

(A Top Pick March 21/17. Up 4%.) He has been beating the drums for international investments because dividends were greater and valuations were better. Also, US healthcare has been so under pressure with prices skyrocketing, and this gave you an opportunity to invest in the European drug company.

He is waiting for some data from the FDA on their inhaler, and perhaps it will come out overnight tonight. This is a diversified pharmaceutical. He likes their long-life assets. Only a couple of their drugs are less than 3% in revenues. This has a decent yield with the new CEO in March committed to that yield.

He likes this and their diversified business line. They’ve got vaccines, pharmaceuticals and their consumer health. Their pipeline tends to be a little bit earlier. Advair does end up as a generic this year, and have fully indicated that in their guidance. The upside could be if we don’t see that generic hit the market this year. There have been some delays in other generic hitting the market. That would be pure upside. Good yield.