RE:Extreme Capitulation is doneI believe that extreme capitulation is still an ongoing process and Friday was just the first day of this process.
It is clear that The Market has lost confidence in current Management which is still in charge. The same Management that just a few days before Friday's debacle said "We remain highly confident in our business prospects going forward," said Concordia Chairman and CEO
Mark Thompson. "We have a strong team across the world who help provide patients with important medicines. The team is supported by durable company fundamentals; Concordia has no liquidity or debt issues, a strong free cash profile, and sales channels in more than 100 countries. We remain optimistic about our long-term future."
The CFO has unexpectedly left the comnpany. This is a big red flag to me.
Last Short Position report showed that around 30% of the float was shorted. Let's see in the next report what is the short position after the last events.
Earnings have been slashed and Debt to Earnings projections have increased. It could get even worse pending resolution on Donnatal.
The bottom is only known after the fact. If you want to gamble by trying to guess the bottom it is your money. Do your own Due Dilligence and Good luck!
LuckyPower wrote: I am fairly new to this board and came here due to yahoo board sucking big time....
to the existing shareholder who have not taken loss or took loss but comtemplating entry
following are my reason for jumping in first thing on monday morning
1) DEBT is everywhere and is conveniently floating around.....any and every piece of sheet company is loaded with it....as the money is virtually free and it will stay the same for couple of more years atleast....look at metlife they took a huge hit due to intrest not increasing.....adn they have revised down as they dont forsee any improvement in low interest envirnment......so welcome home my friend....concordia has atleast next few years secured ....have time to right the ship
2) it suck to see the divident getting cancelled but on a positive note they will have more cash to deploy towards debt or general purpose....it doesnt justify 40 percent hair cut anyways
3)with almost all the people here saying negative things ...for me its a huge positive indicator as it signals capitulation and best entry point you will get ever.
4)they are still cash flow positive and have a potential strategic transaction doors open.
5)retailer are always the first to capitulate and shorts knows it.....they will be covering in hoards coming week.....this drop has surpassed their profit expectation and they will be too nervous not to realize the profit.
so bottom line I see this is one of the best entry point in concordia trading history and I will be bold to say that I accumulated 5500 shares on friday end of day.
I will hold these babies until they hatch for 2x or more :)
peace
Lucky