Rational thinking on Rx industry- aging population with drugs in production that extend and sometimes save people's lives
- margins are high but considering the r&d needed to discover these treatments, they need to be high
- gov price ceiling or the threat there of have destroyed this industry and hence reduced r&d for new drugs in the short term which only extends the life of current drugs
- cxr has market cap of approx 200million and just raised 350 million in new debt...easily
my only conclusion is that at some point we will be rational again and this industry will rise from the ashes and with nearly 11 million shares short, cxr is the least likely to survive but also the most likely to triple with good news and positive momentum. I gambled and dipped my toes and depending on earning results I may go deep and expose the shorts. Next week will be fun. Gll.