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Bullboard - Stock Discussion Forum Concordia Healthcare Corp. T.CXR.R

TSX:CXR.R - Post Discussion

Concordia Healthcare Corp. > DEBT is F-ing 8-9 times 2016 cashflow.
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Post by drunk@noon on Oct 26, 2015 9:42am

DEBT is F-ing 8-9 times 2016 cashflow.

Why don't they tell you that. EBITDA is doesn't tell you anything when debt and interest expesne is so high. Debt is hudge. Interest expense is hudge. EBITDa after interest expense is what you want to use.  $3.5 Billion US in debt.  That's 250 million a year in interest expense at 7.25%. Also woth debt so high eps means very little. To take debt, which dwarfs market cap, into account one must use enterprise value. EDUCATE YOURSELVES.
Comment by themangokid on Oct 26, 2015 9:57am
the irony of someone yelling "EDUCATE YOURSELVES" when only moments earlier they write "intereste expense is hudge". no judgements here, though, from me. just an observation. yes, the debt is large but isn't that already reflected in the 5x 2016 p/e? you're talking like the company is trading at multiples that fall within an ordinary spectrum. I'd be interested ...more  
Comment by sunshine7 on Oct 26, 2015 10:03am
debt is easily serviceable from cash flow. The debt is considered an investment. As it is lowered with time, the cash flow is retained. Analogy: You can borrow money to buy a machine that prints $5 per day but you need to borrow the money to buy it and debt servicing costs are $2 per day. It is paid off in 3 years unless you up the payments from the extra cash generated. Now tell me that is not ...more  
Comment by digitel on Oct 26, 2015 10:28am
This post has been removed in accordance with Community Policy
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