Paul MacDonald
Member since: Jun '16
Chief Investment Officer & Portfolio Manager at
Harvest Portfolios Group
Harvest Portfolios Group
207 Opinions
Latest Top Picks
It offers diversity in an area that the Canadian market doesn't have. Healthcare, insurance, but also owning networks and pharmacy benefit managers. Trades at an attractive multiple for their growth potential. A dominant player that merits the premium. (Analysts’ price target is $335.74)
A diversified medical devices company. They create a variety of equipment, including orthopaedics and robotic surgery. The company has executed very well. They recently made an acquisition that helps them move into hips, knees and ankles. There is volatility. He would enter around $205-210. (Analysts’ price target is $230.25)
He takes a contrarian view as the company reorganizes its business. They are making acquisitions including in the oncology and vaccine business. There are some big drugs coming out of the pipeline. They are becoming more focused on R&D and building out their pipeline. They have around 15 phase 3 drugs right now. Patent expiry is what you have to watch for with this name. (Analysts’ price target is $42.54)
(A Top Pick Dec 03/18, Up 6%) It hasn't been an easy 6%. They have been trading out their covered calls. In early 2019, medicare talks put pressure on this stock. It's a medical insurer, which is a sort of company we don't have in Canada. They deal with healthcare insurance and pharmacy benefit manager. One of the best in the sector.
(A Top Pick Dec 03/18, Up 19%) This company's been on their top picks list since 2016. He spoke to the head of Research when they were brining forward immunotherapy drug Keytruda. The trials are going well over multiple trials. They are also #3 in the animal business too.
Signal
Opinion
Expert
Chart
TOP PICK
TOP PICK
January 17, 2020
It offers diversity in an area that the Canadian market doesn't have. Healthcare, insurance, but also owning networks and pharmacy benefit managers. Trades at an attractive multiple for their growth potential. A dominant player that merits the premium. (Analysts’ price target is $335.74)
Show full opinionHide full opinion
It offers diversity in an area that the Canadian market doesn't have. Healthcare, insurance, but also owning networks and pharmacy benefit managers. Trades at an attractive multiple for their growth potential. A dominant player that merits the premium. (Analysts’ price target is $335.74)
medical services
TOP PICK
TOP PICK
January 17, 2020
A diversified medical devices company. They create a variety of equipment, including orthopaedics and robotic surgery. The company has executed very well. They recently made an acquisition that helps them move into hips, knees and ankles. There is volatility. He would enter around $205-210. (Analysts’ price target is $230.25)
Show full opinionHide full opinionA diversified medical devices company. They create a variety of equipment, including orthopaedics and robotic surgery. The company has executed very well. They recently made an acquisition that helps them move into hips, knees and ankles. There is volatility. He would enter around $205-210. (Analysts’ price target is $230.25)
biotechnology/pharmaceutical
TOP PICK
TOP PICK
January 17, 2020
He takes a contrarian view as the company reorganizes its business. They are making acquisitions including in the oncology and vaccine business. There are some big drugs coming out of the pipeline. They are becoming more focused on R&D and building out their pipeline. They have around 15 phase 3 drugs right now. Patent expiry is what you have to watch for with this name. (Analysts’ price target is $42.54)
Show full opinionHide full opinionHe takes a contrarian view as the company reorganizes its business. They are making acquisitions including in the oncology and vaccine business. There are some big drugs coming out of the pipeline. They are becoming more focused on R&D and building out their pipeline. They have around 15 phase 3 drugs right now. Patent expiry is what you have to watch for with this name. (Analysts’ price target is $42.54)
biotechnology/pharmaceutical
PAST TOP PICK
PAST TOP PICK
January 17, 2020
(A Top Pick Dec 03/18, Up 6%) It hasn't been an easy 6%. They have been trading out their covered calls. In early 2019, medicare talks put pressure on this stock. It's a medical insurer, which is a sort of company we don't have in Canada. They deal with healthcare insurance and pharmacy benefit manager. One of the best in the sector.
Show full opinionHide full opinion(A Top Pick Dec 03/18, Up 6%) It hasn't been an easy 6%. They have been trading out their covered calls. In early 2019, medicare talks put pressure on this stock. It's a medical insurer, which is a sort of company we don't have in Canada. They deal with healthcare insurance and pharmacy benefit manager. One of the best in the sector.
medical services
PAST TOP PICK
PAST TOP PICK
January 17, 2020
(A Top Pick Dec 03/18, Up 19%) This company's been on their top picks list since 2016. He spoke to the head of Research when they were brining forward immunotherapy drug Keytruda. The trials are going well over multiple trials. They are also #3 in the animal business too.
Show full opinionHide full opinion(A Top Pick Dec 03/18, Up 19%) This company's been on their top picks list since 2016. He spoke to the head of Research when they were brining forward immunotherapy drug Keytruda. The trials are going well over multiple trials. They are also #3 in the animal business too.
biotechnology/pharmaceutical
PAST TOP PICK
PAST TOP PICK
January 17, 2020
(A Top Pick Dec 03/18, Up 47%) Celgene had made a number of mis-steps, including management applying for multiple FDA approvals. One thing he really liked about the acquisition was the price it was bought. The acquisition by BMY helped them diversify and it seems to be going well.
Consumer Products
COMMENT
COMMENT
January 17, 2020
Healthcare has permanent and non-cyclical drivers like no other sectors. Looking at developing markets, a lot of their GDP gets spent on healthcare. There is also technological innovation, happening in medical, biotech and pharma industry which is strong.
Show full opinionHide full opinionHealthcare has permanent and non-cyclical drivers like no other sectors. Looking at developing markets, a lot of their GDP gets spent on healthcare. There is also technological innovation, happening in medical, biotech and pharma industry which is strong.
COMMENT
COMMENT
January 17, 2020
China is a great example of healthcare spending expansion. In 2002, spending was around $250USD per capita. Now it's around $850. The expansion just has to continue at the pace right now.
Show full opinionHide full opinionChina is a great example of healthcare spending expansion. In 2002, spending was around $250USD per capita. Now it's around $850. The expansion just has to continue at the pace right now.
COMMENT
COMMENT
January 17, 2020
The healthcare sector has been the whipping child of the election campaign. However, the macro environment is important. Last year, healthcare was under a lot of pressure but this was sentiment driven from macro politics. There was a shift in sentiment in Q3 earnings where any misses were bought, and beats were rewarded. Sentiment is now positive.
Show full opinionHide full opinionThe healthcare sector has been the whipping child of the election campaign. However, the macro environment is important. Last year, healthcare was under a lot of pressure but this was sentiment driven from macro politics. There was a shift in sentiment in Q3 earnings where any misses were bought, and beats were rewarded. Sentiment is now positive.
BUY
BUY
January 17, 2020
On international drug pricing, it is one of the proposals from Trump. The reason why it's coming to the forefront is because they haven't been able to accomplish anything. The proposal is to initiate a pilot project. Their highest selling drug, Humira, has concerns of patent dispute. He saw the Allergen acquisition as a positive for diversifying the risk from the potential dispute.
Show full opinionHide full opinionOn international drug pricing, it is one of the proposals from Trump. The reason why it's coming to the forefront is because they haven't been able to accomplish anything. The proposal is to initiate a pilot project. Their highest selling drug, Humira, has concerns of patent dispute. He saw the Allergen acquisition as a positive for diversifying the risk from the potential dispute.
BUY
BUY
January 17, 2020
The shift in sentiment for the healthcare sector is just starting. The healthcare companies will continue to enjoy rerating. This fund has healthcare and income with just under 400M. It is one of his funds.
Show full opinionHide full opinionThe shift in sentiment for the healthcare sector is just starting. The healthcare companies will continue to enjoy rerating. This fund has healthcare and income with just under 400M. It is one of his funds.
E.T.F.'s
DON'T BUY
DON'T BUY
January 17, 2020
A diversified lab equipment and diagnostics company. They also have an industrial component to their business. They are not part of their fund. The earnings multiple for the sector expanded by 20x. Basically, you are paying more for the same company. That's okay for a growth company but you have to execute perfectly. It is one of the safer choices, but he thinks it's a little too rich now.
Show full opinionHide full opinionA diversified lab equipment and diagnostics company. They also have an industrial component to their business. They are not part of their fund. The earnings multiple for the sector expanded by 20x. Basically, you are paying more for the same company. That's okay for a growth company but you have to execute perfectly. It is one of the safer choices, but he thinks it's a little too rich now.
electrical/electronic
COMMENT
COMMENT
January 17, 2020
This hasn't been a name for them. They are focusing more on the retail side and he wants a more pure play on healthcare. They have developed their pharmacy benefit managers. At around 10x earnings, it's fairly inexpensive but their debt levels are fairly high. They are trying to vertically integrate.
Show full opinionHide full opinionThis hasn't been a name for them. They are focusing more on the retail side and he wants a more pure play on healthcare. They have developed their pharmacy benefit managers. At around 10x earnings, it's fairly inexpensive but their debt levels are fairly high. They are trying to vertically integrate.
specialty stores
COMMENT
COMMENT
January 17, 2020
He was concerned that GSK was getting more growth focused. They spun off their consumer products with Novartis, giving up their oncology department. Now they have a joint venture with Pfizer. Having it as a longterm asset is probably positive.
biotechnology/pharmaceutical
COMMENT
COMMENT
January 17, 2020
He was concerned that GSK was getting more growth focused. They spun off their consumer products with Novartis, giving up their oncology department. Now they have a joint venture with Pfizer. Having it as a longterm asset is probably positive.
biotechnology/pharmaceutical
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