Concordia Healthcare Corp. T.CXR.R

GBP strengthening

[dudsywow]

Up 3% vs US$ in the last week

[kayaman]

They should buy puts on the GBP and sell calls with the same premium. Would cost them nothing and it would take away the doomsday scenario where their cash flow drops dramatically in USD terms. They do that and confidence in their guidance would return. ..or just roll the dice that the UK says stay. But I can't believe that Mark would wager 600 mill of his equity on a 50/50 vote

[sunshine7]

CXin the business of forex trading. They are in the business of manufacturing and marketing of drugs that improve peoples lives. To trade the ebbs and tides of forex is a very different business and not a core strength of most companies. This, in addition to the cost of hedging currencies. It has been calculated and determines that the effect of GBP weakness in a minor negative in relation to the

[sunshine7]

should have read "CXR is NOT in the business of forex trading". It has been previously calculated here to have an estimated $10M effect on earnings and on $600M EBITDA, that is insignificant.

[Lattice]

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[sunshine7]

I challenged the significance of FOREX to the bottom line. Now if you have some credible information or calculations that put a number to this risk, please provide. Otherwise, it is just fear mongering for personal gain.

[select1011]

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[Lattice]

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[kayaman]

I'm a longtime bull on this stock. I think they get through this period we could be seeing substantial gains in the coming years. (easily triple digits as debt is paid off) I would recomend you listen to the conference call and you will hear the concern from many analysts. And the unprepared responses from management. Fact is it is a concern when you make a constant currency guidance at 1.53

[adamchess]

The trouble is kayaman that if the Brexit concerns are already priced into the GBP/USD exchange rate and CXR stock price, then if the Brexit does not happen and rate strengthens in GBP favour, the company will incur large FX losses to offset the gains they would have made otherwise. I would hope that the management of AMCo being in Britain will have a better grasp of the FX risks vis a vis the USD

[select1011]

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[notwrong]

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[select1011]

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[kayaman]

Guidance is at 1.53. But they said AMCO surpassed guidance at 1.475 blended.  So at 1.44 right now you could mitigate your downside. Maybe even buy at 1.46 strike put and sell extra 1.48 calls to pay for the higher premium.. If the GBP rallies great. They shouldn't be looking to capture upside earnings from a currency move, they should be doing everything to meet EBITDA guidance. The

[select1011]

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[Lattice]

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