Latest Expert Opinions

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
February 22, 2017

Wouldn’t be a buyer of this today. He expects generic drug prices today would be on a downward trend. He still sees 5%-8% growth in branded drugs. The current trend for generic drugs is -9%. He is going to stand on the sidelines until he sees where generic prices level out.

Wouldn’t be a buyer of this today. He expects generic drug prices today would be on a downward trend. He still sees 5%-8% growth in branded drugs. The current trend for generic drugs is -9%. He is going to stand on the sidelines until he sees where generic prices level out.

Paul MacDonald
Chief Investment Officer & Portfolio Manager, Harvest Portfolios Group
Price
$35.970
Owned
Unknown
COMMENT
COMMENT
February 22, 2017

One of the top 3 distributors of drugs in the US. A very high volume, low margin business. They indicated they were transitioning into the retail side by acquiring 2200 retail pharmacies in Europe as well as IDA in Canada. They are exposed to the generic drug pricing, so he opted to stand on the sidelines.

McKesson Corp (MCK-N)
February 22, 2017

One of the top 3 distributors of drugs in the US. A very high volume, low margin business. They indicated they were transitioning into the retail side by acquiring 2200 retail pharmacies in Europe as well as IDA in Canada. They are exposed to the generic drug pricing, so he opted to stand on the sidelines.

Paul MacDonald
Chief Investment Officer & Portfolio Manager, Harvest Portfolios Group
Price
$149.050
Owned
No
COMMENT
COMMENT
February 22, 2017

This is the company that found the cure for hepatitis C. It has been a very challenging stock to own, and very much a value trap for the past couple of years. They are seeing price pressures and competition from many competitors over the next year on hepatitis C. They have cut their guidance sufficiently that they can meet it. A great balance sheet and are buying back tons of stock. An OK dividend. Thinks they have some hidden assets in their Nash portfolio and expects to see some results towards the end of the year. He uses covered call strategies to help generate some extra income.

This is the company that found the cure for hepatitis C. It has been a very challenging stock to own, and very much a value trap for the past couple of years. They are seeing price pressures and competition from many competitors over the next year on hepatitis C. They have cut their guidance sufficiently that they can meet it. A great balance sheet and are buying back tons of stock. An OK dividend. Thinks they have some hidden assets in their Nash portfolio and expects to see some results towards the end of the year. He uses covered call strategies to help generate some extra income.

Paul MacDonald
Chief Investment Officer & Portfolio Manager, Harvest Portfolios Group
Price
$68.830
Owned
Yes
COMMENT
COMMENT
February 22, 2017

Likes the valuation. Trading at around 13X next year’s earnings. This has a history from 2010 to 2015, subject to a big patent cliff, where they had significant declines in revenues. They’ve filled out their pipeline. Has 140 drugs that are over $100 million in revenues. 8 are blockbusters with over $1 billion in revenues. Likes the valuation and the yield.

Pfizer Inc (PFE-N)
February 22, 2017

Likes the valuation. Trading at around 13X next year’s earnings. This has a history from 2010 to 2015, subject to a big patent cliff, where they had significant declines in revenues. They’ve filled out their pipeline. Has 140 drugs that are over $100 million in revenues. 8 are blockbusters with over $1 billion in revenues. Likes the valuation and the yield.

Paul MacDonald
Chief Investment Officer & Portfolio Manager, Harvest Portfolios Group
Price
$33.590
Owned
Yes
COMMENT
COMMENT
February 22, 2017

This is sitting at around 17.5X forward earnings. The St. Jude acquisition was a big one for them. It expanded their balance sheet. They still have the Alere acquisition overhang. Have some things to chew through this year in order to get the multiple expansion up to something like 21X, where its direct competitors would trade at. If a longer-term holder, you do have some upside on this.

Abbott Labs (ABT-N)
February 22, 2017

This is sitting at around 17.5X forward earnings. The St. Jude acquisition was a big one for them. It expanded their balance sheet. They still have the Alere acquisition overhang. Have some things to chew through this year in order to get the multiple expansion up to something like 21X, where its direct competitors would trade at. If a longer-term holder, you do have some upside on this.

Paul MacDonald
Chief Investment Officer & Portfolio Manager, Harvest Portfolios Group
Price
$45.010
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
February 22, 2017

(A Top Pick June 22/16. Up 17.47%.) He knew we were coming into some volatile times back in June, and this is one of the dominant biotech companies. Really likes their PCSK9 cholesterol drug, which is going to be a blockbuster.

Amgen Inc. (AMGN-Q)
February 22, 2017

(A Top Pick June 22/16. Up 17.47%.) He knew we were coming into some volatile times back in June, and this is one of the dominant biotech companies. Really likes their PCSK9 cholesterol drug, which is going to be a blockbuster.

Paul MacDonald
Chief Investment Officer & Portfolio Manager, Harvest Portfolios Group
Price
$172.610
Owned
Yes
PAST TOP PICK
PAST TOP PICK
February 22, 2017

(A Top Pick June 22/16. Up 16.19%.) The one thing he liked about this was the diversified pipeline, but really it was their immuno oncology drug that has been the front runner.

Merck & Company (MRK-N)
February 22, 2017

(A Top Pick June 22/16. Up 16.19%.) The one thing he liked about this was the diversified pipeline, but really it was their immuno oncology drug that has been the front runner.

Paul MacDonald
Chief Investment Officer & Portfolio Manager, Harvest Portfolios Group
Price
$65.290
Owned
Yes