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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Comment by smallshorton Oct 03, 2016 7:31pm
64 Views
Post# 25304552

RE:RE:RE:RE:Tangible Book Value -$98.88 per share - Not a joke!

RE:RE:RE:RE:Tangible Book Value -$98.88 per share - Not a joke!

ok2buy, let's agree to disagree.  

I've seen many companies in a "spiral of death" and death for common shareholders is bankruptcy proceedings.  Normally shareholders get very little but it all depends on the tangible assets.  In this case, you are guaranteed zero for common shares.

In this case, I really want to locate the document that discusses what happens to Amco and outstanding payments to Cinven if Concordia fails to meet their payment obligations to Cinven to complete the Deed transfer.  

Documents talk about "Deed" transfer which means that until the earnouts are complete, I think, under UK law, Cinven would reclaim full ownership of Amco, debt free since that was paid by the $60 per share using the "Amco Offering" Concordia did a year ago. Worst case scenario and quite a possibilty given the earn-out wasn't completed as originally planned.

If that happens, CXR is stuck with the debt and you know what they say about bankruptcy.   "You get there two ways. Gradually, then suddenly."  I think we are in the gradual phase.

Now, I do want to warn everyone this is my understanding of the law and arrangement. Unlike many here, I'm not an expert but I read through all filings.  And I could be wrong.  Any serious longs here should follow up with UK transfer agent on the Amco Deed.  Probably well worth the long distance call.

I am very bearish on this stock. No longs have been able to put forth a good long thesis so I'm looking for a peak to add to my short position at this point.  I can really see why the large short sellers are planning to short this to zero and have no intentions of covering anytime soon.

 

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