RE:RE:Short term Postive News - New PosterThanks
I hope everyone fact checks me. But Im not wrong and don't mislead with the facts. The model never lies.
It would only be fair to factor in other positive aspects that are NOT factored in:
- GBPUSD will strengthen in 5Y which is extremely bullish for CXRX and will devalue the debt
- Pipeline of products
- CEO can be fired (yes this is positive - he is useless)
- Salaries revised down or pegged to share comp (which is bullish and lowers taxes)
Caveats:
- Increased competitions - although don't see this as an issue as CXRX has a 70% margin and can pivot if it has room to breathe
- Short term sterling issues (brexit is bad news)
- A product being pulled - although they are well diversified
What bullets do shorts have? More articles about price gouging. Thats about it. But its a business. WACC (cost to run) is approximately 14% for the company. They are in it to make money. Quoting price increases in "relative" terms is very misleading.
TO any late readers. Please read my first post for context.