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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Comment by TickerTwiton Jul 08, 2016 11:19am
102 Views
Post# 25035289

RE:RE:Buy back or dividend

RE:RE:Buy back or dividendI've seen a number of companies try share buybacks in response to short pressure; it usually has no effect on share price (which keeps on doing what it was already doing) and it weakens cash flow.

My preference for CXR is a tight focus on debt repayment, so (1) keep the dividend minimized at a token amount (to remain eligible for certain investment funds and not trigger institutional selloffs), and (2) no share buybacks until interest expense is a considerably lower fraction of cash flow.

The short story diminishes when cash flow strengthens, and share buybacks act against cash flow.
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CNInvesting wrote: It's actually a crime that the company is paying this pointless dividend right now instead of buying back its own shares when they're so cheap. It makes absolutely no sense.

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