RE:RE:RE:down over 6% today to $32.03hi bull_man, I am an accountant and also have no idea how you arrive at an 18 year timeframe for a PE to get their payback. Even if we say we use the $300 M to pay debt in about 10 yrs, then in 10 years we are debt free with at least $10 per share fcf. Even given required return of say 10%, then value is $100 USD. If we add simple 5% revenue growth, then add another $50 USD. That is a pretty good return from $65USD purchase price in my books. These are ultra conservative numbers, imo, and it could easily be worth twice that in less time if sales growth beats 5% by a good margin and PE multiples is greater than 10 times.
The only way I can figure an 18 year payback is if you expect to receive your investment back and debt of CXR is paid off through FCF leaving a debt free CXR and zero cost base??
bull_man wrote: hey sunny, you obviously don't understand free cash flow; for starters i'm a CA so i know more than you what free cash flow is; secondly, look up the simplistic definition (given you're a simpleton) and then go to concordia's financial statements and do the math; thirdly, everyone and his grandmother on BNN has discussed their 300M annual free cash flow....what more do you want sunny??? and i added disclaimers/assumptions: assume no growth, and on the other side, assume no effect from U.S. imposed regulations on pharms.....either one could be very significant, or offsetting if they both happen; obviously you are not smart enough to understand all of this....sleep well moron.