RE:RE:RE:RE:Let's talk about what CXR managment should/could be doing.
Stockcoach1 wrote:
I'm sorry but I think that the company has responded. The CEO just reiterated his guidance, for the third time since Q3 results. Just three days ago he released and posted the company's presentation. He stated that the integration is proceeding well, as AMCo is already a functioning entity. Traditional integration is not required only bridging the gap between the two entities. He stated that outside of time zone issues there are no challenges with the integration. He launched 2 new drugs. Clearly stated that they will be paying down more debt. Guided growth increase in the mid teens. Hired 100 new drug reps in US because of product growth. Stated that their platform now is capable of doing global deals, that no other company is capable of. Opened up India Centre of Excellence with 300+ staff. This enabled him to cancel all outsourcing and provide a cost saving due to labour benefits as well as gaining a highly skilled and educated pool of people.
He added - that because of capital constraints they are not currently in a position to do an AMCo esque transaction but they are working on numerous smaller ones and new ones are now coming out of J.P. Morgan. His trip to SFO this month brought new possibilities with Novartis, Glaxo S.C., Pfizer. Growth by acquisition is alive!
Bringing AMCo's lead products into the US is currently being worked on and offers great potential.
With all that said, what is it that you would like him to do? He stated the the SP is extremely undervalued (and that was @ $45.00+). He can't control the price and he can only lead by example. He did by investing $1M @ around $42.00.
select1011 wrote: This is all correct and its a really a great summary. But is share price is falling. I think I provided some good ideas. There is no promise in my view, in my investment portfolio, that we will return to upside SP, with a CEO and management team who has not responded to a 70% decline in their performance metric. They are not showing that that can mange a global company. Does the board have global experience? Does the management team? You and me are in real time investing, and the CEO and IR are still communicating like he and they are at an SP over $100. Same thing happened to Pearson at VRX.
select1011 wrote: My concern as a long in this company is how little we have heard from the company since the SP has fallen 70%. The CEO and his team could be doing much more to acknowledge that the SP is a really important measure of how effective they are. Were in the first third of this quarter, and we haven't heard a thing. If they have chosen to report the last quarter in March, then surely they can tell us how this quarter is going along the way until then. So, if they really are fully integrated with AMCO - announce it. If they are keen to buy new products, get it done and announce it. If they will be making another big payment on debt in the current quarter - announce it. My concern is that the CEO and IR will probably take a call anytime from an institutional investor about the failing SP - even though many, probably own fewer shares that the some of us. That's a sign of a management that has never been through a rout like this and I feel that this is either a worrisome sign of naivet, or arrogance. What befell Valeant, was exactly a loss of confidence in the management that was caught flatfooted when investors came calling. No messages to get out, and too late to get them out when they had them. The management at CXR is working in the analogue world, we the markets and investors are working in digital. That's my main concern - confidence in the management of CXR who I don't hear from.
select1011 wrote: ... I am not one to reply to my own messages, but I do want to point out that from my DD, neither the board nor management have global operating and strategic experience. None. None of these chaps have ever been operating in 100 countries. I am not sure if any of the VPs ever had. Do your own DD. I am not trying to talking down this company. I am long it. But I am beginning to not be long the leadership of it.
Select1011 - You ask questions and voice concerns, and I provide you with concrete answers and examples of what the management has done.
Your concern is the SP falling even though the management is doing a stellar job that will benefit it's future top and bottom line......but it's not good enough for you.
You want him to be an illusionist and pull rabbits out of a hat. Seems like you want him to come out after every negative day and make a pumping comment. Do you want a Murray Pezim for a CEO? Are you familiar with "The Boy That Cried Wolf".
You obviously are portraying a very negative outlook about this company and it's management. Regardless of the facts you refuse to remove your blinders. It's obvious that you need to sell, to free yourself. Yet your goal is pretty transparent.....to scare others into selling.