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Concordia Healthcare Corp. > This dog won't hunt

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Post by argentia77 on Jan 20, 2016 10:15am

This dog won't hunt

Anyone with a plausible explanation why CXR has dropped 30% in the last month wheras other pharmas, Valeant encluded, about half that?

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Comment by Marcel7 on Jan 20, 2016 10:27am

IMO it has to do with debt load. If you reduce the estimated enterprise value of CXR, the debt remains the same, so you value the equity portion much less. Also, higher debt ratios are seen as riskier, and everyone is fleeing riskier assets. I am just speculating here, as I believe the debt IS managable and I think it just leaves more room to move up as they continue to pay down debt. It is ...more

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Comment by argentia77 on Jan 20, 2016 11:01am

Marcel: that seems like a pretty good reason as any. So here's me holding a core 1500 and starting to bite my nails as the sp has now sunk below my average cost/share. What do you think is a simple straightforward way to hedge against further collapse at this point? You posted something about 3x inverse S&P500, but I don't quite understand ...more

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