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

TSX:CXR.R - Post Discussion

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Post by fdfd12 on Dec 19, 2015 7:53am

Pineapple

1)

All of the analysts have lowered their targets.
Their targets used to be over $100 and when a stock goes to the $30's, then
they look like fools setting one year targets to $110 so they lower them to between $60 and $80 and STILL rate it a STRONG BUY.
As the stock price gets higher, like it is now, then those SAME analysts, boost up their targets to $70 - $90 whcih you will see soon since that is the next step for them to take.

2)

Yes they have 10% growth yoy. Yes they will not be buying a major company like they did in the next 5 years until their debt is under control. BUT what you refuse to see is that their guided EPS is $6.29-$6.77 all in US.
This makes it $9CND. Put a simple multiple of 15 and you get a price of $135CAN NOW.
I mean that is what CXR is worth NOW.
From that, you take 10% yoy and add that to the price for each year.
So what I am saying is that I agree with you. The growth is not as strong as a stock growing at 30 X but CXR is cheap since it should be at $135 NOW.

3) Watch this video of the CEO talking about the debt with Andrew Mcreath to which,
Andrew liked it so much that he bought CXR shares right away for his fund and said it on TV that he did so.
https://www.bnn.ca/Video/player.aspx?vid=739294


Yes Pineapple, growth is slower now, BUT you must start with a base price of $135.
If you start from $50, then price will move much faster since it should have been at $135 to begin with.

Thanks for reading if you guys made it this far, lol)
Comment by pineapple1 on Dec 19, 2015 9:37am
This post has been removed in accordance with Community Policy
Comment by ruben12345 on Dec 19, 2015 10:03am
i respectfully disagree and willing to take a bet on that with you. Concordia entered a great stable situation up $20 from the low. Its holds on days like yesterday when a truck ran over wall street.   Analyst reevalue with every $ Cxr Climber back up as we have seen with the 2 target increases this week. Concordia Will have multiple catalysts coming ranging from product launches and investor ...more  
Comment by sunshine7 on Dec 19, 2015 3:57pm
Earnings estimate calls for ~CD500M in 2016. Bulk of loans at 4-5%. Return on investment is 14%. Would you borrow money at 4% to receive 14%? I would. All approximate numbers and possibly conservative, but you get the idea.
Comment by pineapple1 on Dec 19, 2015 7:24pm
This post has been removed in accordance with Community Policy
Comment by Scruggstyle on Dec 19, 2015 9:31pm
Pineapple, I'm afraid that you didn't actually provide much, in substance, to rebut.  You know, as well as the rest of us, that (between Concordia and AMCo) several product and corporate acquisitions have been made over the past 12 months, branch offices have opened in various regions of the world, new distribution and other business relationships have been entered into, AND that the ...more  
Comment by sunshine7 on Dec 20, 2015 10:46am
Blended rate is 7.25% including the 2 year bridge loans at 9%+ which will be paid down first. That should occur by the end of 2016 after which the blended rate will likely be 6%ish. That is when a greater amount of principle will be paid down with sub-$200M interest obligation and earnings well in excess of that. Pineapple, you seem like a smart guy/girl. You can figure that out surely. Maybe ...more  
Comment by adamchess on Dec 20, 2015 12:15am
So pineapple, if you are not long on CXR and not short, why bother commenting on stock you know nothing about? At least we put our money where our DD takes us. Maybe you should have a more positive outlook? CXR growth and cashflow will outweigh its debt we are betting. You are free to invest elsewhere. best wishes
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