RE:RE:RE:RE:Random thought on debt paydown...Most analysts are using ev/ebitda so it smooths it out a bit. But the big shock will come with the multiple. Rbc is still using a multiple inline with peers and hasn't included the increased debt in their target. Cxr should trade at a discount to peers given the leverage, lack of visibility, missed guidance, UK headwinds, high interest payments, etc as well. I expect Rbc to reduce the multiple and include the note issue in their next target any day now. It should slash their target deep into single digits.
Nossy45 wrote:
Yes I know, the EBITDA problem is making analysts job very difficult. This why prices are all over the place. There is also the issue of future drug pricing. That being said, CXR has plenty of cash and will use that to take care of near term liabilities.
The UK gov is having another reading of the Health Service Medical Supplies Bill on Monday. Perhaps this will give us an idea of CRX's future prospects in the UK.
https://services.parliament.uk/bills/2016-17/healthservicemedicalsuppliescosts.html