Concordia Healthcare Corp. T.CXR.R

Sector correlation

[Marcel7]

What we are seeing here is either investors fleeing the sector or shorting of the sector.

CXR is along for the ride. Remember, being added to the ETF's was a double edged sword, it was expected that after being added it would more strongly correlate to the sector, and that is what we have seen in this dip.

Add to that the overall market jitters. When fear takes hold people sell what they perceive to be riskier assets. With their leveraged balance sheet CXR falls into this category for some investors, as do other companies in the sector.

With that said, although correlated with the sector over the short term, over the longer run I think CXR should break from the sector to the upside. None of what is happening in the market affects the fundamental business of the company. The only issue on the horizon is if the cost of debt increases, but as CXR executes and delivers results while paying down the debt this will become less of a concern.

I am long and while I wish I had the forsight to have seen the recent dip in the market, I am in this company for the long haul. There is no way I am selling at this value. I will tune back in a few months and see how everything has shaken out. This will be moving back up, it is only a question of how long.

Marcel

[JustforFun7]

yes that is my feelin  as well ....this is about a amrket  down turn and the shorts going after certain sectors....we're just i the wrong sector at the wrong time.  JFF7