RE:RE:Is short selling leading to the wavelike valuations?Well before i talk busienss can i ask you one question? why do u own this stock if you have such little confidence in it? were you one of the losers earlier this year who lost alot of money after the great fall who has just given up on it? or are you just a short seller hoping to cash in on this companies uncertainty. And even then why do u trust this stock if your analysis suggests that this company has the furture equity of a blockbuster and pan am merger. it just doesn't make sense, unlesss you personally are trying to drive down values so you can continue to short sell.
Now to address your pointsi'll address them point by point
1. no investment in research?
-untrue, in fact a few months ago the comapny got alot of cricism for borrowing over 100 million dollars to do further research for new drugs, it has also spend far to much money aquiring other drug brands to build a major base of drugs under its wings. so it has a pretty strong potential for further sales, the only problem here is pricing which leads me to my next point.
2. New pricing rules in britian will make the company unprofitable?
-britain is one of the hundreds of countries that concordia sells its drugs in. its moderately big, has an aging population but is also drowing in massive political uncertainty that puts most industries there at risk. pharaceticals is one of them and understand that if concordia is hit all other pharmacetical companies will be hit pretty strongly as well. i doubt england especially the conservatives want to bankrupt any indsutries espeically one as big as the pharmecetical so the regulations should be sensible and i'll assume that they consult pharmacetical pricing experts before making any moves. Even if the worst occors england is one of the many contries in the world and i don't think we should be too worried at least for the next few years.
3. There are better investments to make?
of course there are there always are. its just its difficult to pick the right companies, often the higest growth companies are notrious for falling from highs just as concordia did a few months ago. was concordia not one of the fastest growing pharmcetical companies of the 2010s a few months ago, then the analysists that suggested that its stock could continue to go over $100 were wrong. millions of dollars lost, investors tanking. Analysts said Nvida could go nowhere but up in late 2016, but did it not fall by around 10 percent since then? Good investments take time, its very seldom for one to actually make a profit jumping on the hype train. Concordia has 4 billion dolalrs in dept, some of which it has paid off recently but quietly. Concordia still had billions of dollars in debt when its stock was 20x what it is right, now, its not like a few extra hundred million makes the company worthless now. I don't think the debt is the source of the companies woes sharewise. If anything people are underhyping this company. people panicked like you are now and the banks sold their holdings in this stock. Once the company stabilizes the banks will rebuy holdings and that will be the major driver for increased share pricing.
We don't have to wait unti lthe companies debt is zero, we just need to wait for the companies earings to show increases which was already the case in recent quarters. Good investments take time.