RE:Peter Imhoff, BNN
I agree with Mr. Imhof that the debt is large, but I believe one can't look at debt in isolation, just like you can't look at trailing P/E or any other single factor in isolation.......I think if CXR comes anywhere close to their projected earnings and cash flow this year, they should be able to pay down that debt, and I hope CXR management does just that....Medication is not very cyclical in nature, so unless Mr. Imhof believes that CXR's earnings and cash flow going forward won't come close to expectations (or CXR will irresponsibly allow the size of the debt to remain as is), I don't think his argument is very convincing.....That said, I do believe that debt repayment must be priority number one for CXR given the extremely high interest rates they are paying on some of it (7% to 9 1/2%), especially since interest rates in general have been rock bottom low over the past number of years....One question I have: If VRX did not exist, what would CXR be trading at today...?....I am not aware of any alleged unethical behaviour on the part of CXR (VRX ---> Philidor), or Subpoenas from Federal Prosecutors (VRX ---> Boston, Manhattan), or Subpoenas to testify before a United States Congressional Committee over price increases to their drugs (VRX ---> Senate Special Committee on Aging). etc..........Plus, correct me if I'm wrong, but I believe VRX has over $30 billion in debt???.......If so, it's quite a bit more than CXR's $4 Billion, right....?.....