RE:RE:RE:RE:What's it going to take?Short Thesis from what I can make of it (just some main points).
1) MT doesn't know how to run a Company. He was involved with previous pharma companies as their 'general counsel' but the Company was a 'fraud' (this one makes no sense to me, but Cohdes has been saying this or something along those lines).
2) Company has too much debt and can't service it's debt. (CXR is FAR from insolvent).
3) They are selling drugs with declining prescrption counts.
4) Donnatel that makes up 10% of their sales is way overpriced and the sales will soon fall off a cliff.
5) 2 PE firms looked a their books and walked away with making an offer! (This simply means to me that that they came in to lowball and take advantage of a low share price, but CXR doesn't want to nor do they need to sell for pennies on the dollar).
6) They overpaid for AMCO and their 'declining' sales won't justify the purchase price.
7) All the new product launches are reformulations of existing products and therefore it's all a sham.
8) Why is A/R so high? It's because they are not recording revenue properly and are inflating their numbers! The sky iwill soon cave in!
I'm sure I've missed out on many points, but that's off the top of my head.
If CXR can show a few quarters of good results and EBITDA to pay down debt, I believe the thesis all falls apart. Donnatel sales will likely decline a bit and I'm shure the shorts will jump all over this.
sunshine7 wrote: wordless says: "
And if it can show the market, it disproves the short thesis and we can move up."
Can you remind us again what the short thesis is?