A globally diversified REIT with exposure in Canada, Brazil, Germany, Austria and Asia. Rather than being in healthcare, they are more of a rent collector. In Canada, in particular, they run medical office buildings, which is a more defensive part of the market. Yield of about 8%. Although it has some positive attributes, the balance sheet is stretched, and a lot of their debts are in convertible bonds.

The sector is trading at 14-14.5 times, while this company is trading at about half that multiple. From that perspective, it is screaming value. However, this was a 2-trick pony with hepatitis C and HIV. The hepatitis C has been slowly decreasing and HIV sales have been increasing, but not enough to offset the decline. Generating tremendous free cash flow, and he thinks the market has taken a bit of a wait and see attitude, to see how management is going to deploy this. The stock has a 2.5% yield, and he would like to see them bump the dividend. They would still have more room in terms of capital to put the money to work, to see where the next leg of growth is going to come from.

Now nearing the upper end of the valuation range. Looking at the Canadian seniors housing market, you have Chartwell (CSH.UN-T), the largest in the space, and this is in the next tier down. The AFFO multiples are very close, and at the high end of the range. They’ve started to expand into home care which is probably why they have done so well. This is an area where there has been pretty robust margins and lots of growth, with government subsidy. There are better areas where you can get higher yield, and even better valuations with growth, but overall it is a good company to own. Dividend yield of 4.6%.

Has a very small position, and it ranks high on his list. It has done very well in diabetes insulin. However, that is a part of the market where there is starting to be some downward price pressure as more competition has come in. There hasn’t been enough R&D to find out where the next leg of growth is going to be. You would think emerging markets would be a dominant area for them, but they don’t seem to be moving in that direction. The stock is not cheap and gives you about a 2.5% yield. He would like to see an activist investor get involved.

(A Top Pick Oct 11/16. Down 9.87%.) For the most part of 2016, there was a rotation out of Pharma and into medical devices. Great company, well-established and a good yield.

(A Top Pick Oct 11/16. Down 3.59%.) This was and is subject to a takeover offer by Walgreens. Sold his holdings at about $8.30.

(A Top Pick Oct 11/16. Down 2.05%.) A very deep pipeline of drugs and hidden value. It gives you a 3%+ yield. Great company.