Today, Lyle Stein and Paul MacDonald commented about whether AMGN-Q, ANTM-N, MRK-N, BSX-N, SYK-N, ABBV-N, PFE-N, NVS-N, UNH-N, AGN-N, MRK-N, CELG-Q, GILD-Q, CVS-N, SNN-N, AQN-T, ECA-T, CHR-T, FDX-N, PSK-T, TECK.B-T, CSH.UN-T, ENB-T, CGX-T, SLF-T, CP-T, CNR-T, BTE-T, VII-T, SBUX-Q, SU-T, HBM-T, NA-T, NTR-T, MFC-T, ALA-T, CM-T are stocks to buy or sell.
This trend in demographics is going to benefit this company. He has not bought it and there is a better situation elsewhere in the REIT space. We don't have enough nursing home beds. The issue they have is the land grab in the neighborhoods where people want to move from. This is people moving from homes they own into facilities they rent. He has TCN-T as it is a slightly better investment.
It is a contrarian value play. They took on a lot of debt and made too many acquisitions last cycle but now they are not and it does not look that bad. This is a cash machine and they will return cash to shareholders. He thinks there will be a special dividend at some point. (Analysts’ target: $42.06).
It is the most misunderstood company out there. It got tanked along with the airlines but they have a contract that is almost like a take or pay. They get paid to have the plane in service where there is a bum in the seat or not. They suffered where they did an issue while the stock was going down and people are not patient with them. He thinks the dividend is okay and is a good one. He thinks it is a contrarian name where you get paid while you wait.
He thinks it will be a steady grower over the long term but he would be going to NPI-T for this exposure. The acquisition they made in the US seems to be working well. This is single digit growth company and we won't see the same number of takeovers occurring in the future. As the acquisition is absorbed, the dividend will grow. It is a good company to hold onto. It pays a US$ dividend in case you need them.
Market. Longer term it is undeniable health care is one of the sectors benefiting directly from an aging population. This is a permanent non-cyclical thematic. Shorter term the political noise is changing with the FDA and the Administration and even with Amazon entering the space. But valuations haven’t been at these levels in the last 15-20 years. Because of that, he thinks it is a good entry point for somebody looking at the middle to long term horizon. He thinks this is not for the novice investor. You want diversity in the space. Individual stock risk could be very high.
What company is going to take the lead on oncology? Merck & Co (MRK-N) came with data at a recent conference in Chicago that puts them at the forefront in this area. He has been advocating this for a coupe of years. He would own a basket. Bristol-Myers Squibb (BMY-N) and Astrazeneca ADS (AZN-N) would also be part of that basket.
Looking at the graph it has been in a very difficult position in the last coupe of years. They essentially cured hepatitis C. It was an expensive drug. $98,000 per patient. It has come off patent. Competitors came to produce it now. They have been on the penalty box for the past year and a half. But they are making inroads on other drugs. They have had meaningful trials. At this value there is a good opportunity.
It has been in the good news box in the last couple of weeks. They have shown the stability of the model. We need pipelines. It has reasonable debt. It is a question of watching execution taking place.