Post by
FootballFan1 on Oct 27, 2015 2:21pm
Too Big Too Fast....?
According to tmxmoney.com, CXR started trading on the TSX on December 24, 2013 at less than $7 per share......In less than two years, their shares were trading at over $100.......Now, unless they acquired all these companies at ridiculously low prices, you have to wonder whether their current debt levels should not have been given more consideration re. how much CXR is worth per share.......When a price of a company shoots up so high so fast, it's usually prudent to see it as a red flag, especially if you are considering purchasing the shares.......and perhaps taking your money off the table if you made a good buck off it.......Also, there are so many companies who are doing the same thing nowadays (not just Valeant), so the competition to grow via acquisition is becoming more intense......
Comment by
adamchess on Oct 27, 2015 3:03pm
They do not have to grow by acquisition anymore. They already hit the motherload!! Cheers
Comment by
FootballFan1 on Oct 27, 2015 4:39pm
......or did a motherload of debt hit CXR.....?
Comment by
cg16 on Oct 27, 2015 4:48pm
the Lenders of the debt must not think so? those bandits got a kiss on the rate too thanks to the market timing.. they are laughin. they are not worried about covenants at all. the 60 new drugs and the big expanded distribution platform for current drugs in portfolio will create a nice cushion too. Mark has built a cash generating machine. can't argue with cash.
Comment by
adamchess on Oct 27, 2015 5:02pm
Pretty sure they had the whole transaction figured out well in advance including taking on the debt and payment requirements.. No surprises. They can handle it with cashflow. Not a good place to short here. better to go long. byebye
Comment by
ruben12345 on Oct 27, 2015 5:15pm
of course. You think they did the acquisition to destroy 2b of shareholder value? Just caught up in mix of things. Plus investors need to be patient. Some expect to be back at 80 in or week. It never works like that