Can't see the forest for the treesDon't put too much emphasis on the August 12th earning report. Generic drugs will always be in demand, and the demand will only increase in the next decade, as the baby boomers step into their 70s and 80s, people continue to live longer, and globle population keeps growing.
On August 12th, if the SP goes up dramatically, sell some shares to prevent overweighting. If SP drops by a significant amount, it's another great oppertunity to invest in a company with good long term prospect. If nothing happens, simply hold onto your shares and enjoy the close to 2% dividend, which is not too bad in today's low interest environment.
Some thoughts about the shorts. There is no doubt that shorting can make a huge profit. The 2015 movie, "The Big Short" is a good example illustrating the success of such strategy. However, a strategy that produce a Win-Lose situation always has its downside. In the movie, Michael Burry and Mark Baum did make a huge profit shorting the US housing market. However, none of them were truly happy about what they have accomplished.
Seek Win-Win. This is one of the fundimental principles in investing and in life. Invest in companies that you believe will make a positive change and better people's life. When money is made this way, you actually feel good. Hence, I don't endorse shorting, using the Win-Lose strategy may let you win a few battles, but you always lose the war.
Thoughts on CXR's debt. There is no doubt CXR has a lot of debt, total debt/equity ratio is ~3. CXR is ~4 billion in debt, and its asset generates ~400-600 million annually. To me, this is like a 400K house (bought with mortgage) producing 30-60K rent annually (10-15%). I don't see any risk of defaulting. Plus, the revenue is expected to increase in the future, given our aging population.
For better or for worse, I am looking forward to August 12th. GLTA.