PAST TOP PICK

(A Top Pick July 14/17 Down 14%). This is a great example where you need to trade with a stop loss – he uses a 7-10% stop. Poor earnings, along with a pullback below their stop, resulted in them selling off their holdings.

PAST TOP PICK

(A Top Pick July 14/17 Up 18%). This garbage collection company been growing successfully through acquisitions. They are benefitting from EPA regulations to collect methane at garbage dumps, collecting methane to fuel their fleet.

PAST TOP PICK

(A Top Pick July 14/17 Up 16%). He sees this company growing by acquisitions and sees more opportunities to come. They still own it.

TOP PICK

Sticking with it. Valuations are too attractive to ignore. All they need are a few winning drugs and to offer proper guidance. Let's see some of their trials succeed--even good results will do. Their pipeline is too robust to stay at 8.5x forwarded earning. But management needs to regain credibility. (Analysts' target of $116.08)

TOP PICK

A large, diversified pharma company with a hepatitis C franchise, but are really into immonotherapy and chemotherapy. They are getting positive results with their drugs, and will be the leader in this space. Own this with BMY-N and AZN-N preferrably (and not alone). A must-own stock in healthcare given their pipeline and leadership. Dividend yield of 3.5%. (Analysts' target of $67.25)

TOP PICK

Orthopedic equipment is a key part of their business. The frontrunner and pioneer of robotics in surgery, and gaining market share. For medtech, Stryker is where to be. (Analysts' target of $173.67)

COMMENT

No question, people are aging all around the world. Couple this with advances in medtech, pharmaceuticals and biotech while people grow wealthier, spending disproportionately more on healthcare. Altogether, healthcare looks
robust going forward. Pharma and drug spending are a political lightning rod, though, with the drug companies targeted before, but now the middlemen being targeted. Drug spending amounts to 10% of all healthcare expenses. Medical cannabis still hasn't entered his thesis; he needs to see more stability and history in these stocks, even though cannabis makes up a huge part of Canadian healthcare stocks.

DON'T BUY

Teva or Pfizer? He sold Teva 18 months ago. Generic drug prices are under pressure though have levelled off. Their migraine drug has struggled. Instead, he prefers Pfizer with 140 drugs generating $100 million in revenues. They make good acquisitions and are enjoying great progress in oncology. They're also repatriating $24.5 billion with $5 million going to buybacks. Just announced they want to sell their consumer products division, so the impact of this is unknown. 12x forward earnings. Fabulously run company. Talk of major acquisitions. Happy to hold this.

BUY

Teva or Pfizer? He sold Teva 18 months ago. Generic drug prices are under pressure though have levelled off. Their migraine drug has struggled. Instead, he prefers Pfizer with 140 drugs generating $100 million in revenues. They make good acquisitions and are enjoying great progress in oncology. They're also repatriating $24.5 billion with $5 million going to buybacks. Just announced they want to sell their consumer products division, so the impact of this is unknown. 12x forward earnings. Fabulously run company. Talk of major acquisitions. Happy to hold this.

HOLD

Don't add to your holdings, just hold. Wait till June when the second generic test of a new drug gets passed by the FDA. They have a great HIV franchise. Their capital plans are really interesting, because they may buy Pfizer's consumer division, while Novartis has a sell option to sell back to GSK an earlier swap deal. They are focusing on consumer products. Dividend yield over 6%.

DON'T BUY

Smith & Nephew or Stryker? Smith: Knows it only marginally. The options S&N were generation aren't attractive enough for him to buy. Stryker: Keep an eye on this. Their robotic surgery is cutting a strong profile in orthopedic surgeries. It's definitely becoming the market leader.

BUY

Smith & Nephew or Stryker? Smith: Knows it only marginally. The options S&N were generation aren't attractive enough for him to buy. Stryker: Keep an eye on this. Their robotic surgery is cutting a strong profile in orthopedic surgeries. It's definitely becoming the market leader.

PAST TOP PICK

(A Top Pick May 10/17, Up 30%) Pure health insurance in the U.S. and expects it be the dominant player. Made a tremendous acquisition 2012 that's paid off. Stock is a great performer, and he likes the sector, too, which will consolidate.

PAST TOP PICK

(A Top Pick May 10/17, Up 16%) It's a diversified biopharma out of the UK. Surprised many by annoucning phase 2 drug trial in lung cancer--a frontrunner in this space. Their main drivers is their immunotherapy business. A great growth profile in the industry, but need to execute on a few of these trials in the next 6-12 months. Own it with BMY-N and MRK-N and not alone.

PAST TOP PICK

(A Top Pick May 10/17, Down 26%) Was once a widely-owned, then despised, stock. New management came in, then there was a downrgade, then their Crohn's disease drug missed, then received an FDA letter for a mass drug is incomplete, which almost never happens. They've made a lot of mistakes in a short time. It still enjoys near-20% EPS growth. They have a dozen phase-two drugs in progress--a deep pipeline--but management has disappointed. That said, he continues to have faith in CELG.