Concordia Healthcare Corp. T.CXR.R

Something to think about

[K9Justice]

Here is another way to look at it.  What happens when housing prices are high?  You have a smaller market of consumers and in every business you need consumers to increase profits. When they drop to a reasonable price, house sells go up.  Construction goes up and so on.  What happens when a new tech product comes out.  I remember when VCRs first came out they were $700.  Very few could afford them.  Then when they dropped in price they became a household item. 
 
What happens at the grocery store.  Safeway is a high priced store.  When I go by there very few shoppers.  Loblaws/Superstore  lower price store.  This store is always packed.  I worked in pharmacies for years in the dispensary.  There were many people who needed prescriptions filled and could not afford what they needed and did without.  So if brand X prescription what $100 & we sold 25 a month.  Then brand X dropped their prices to $50, we then would sell 100 a month.  Yes we had to sell more, but it increased our sells, increased traffic into our business for those add on sells also.  So are drops in prices all that bad, I personal think NO, not from what I see how it drives sales up.

[LatticelnExile]

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[K9Justice]

The point is Volume increses in all areas of every industry that does this.  

[wallop13]

They will sell the company. No point in trying to make a go of it with debt like that. I'm here for the assets now. Amco is a nice asset, it should be worth at least 11x in a sale. North America should also be easy to sell for 6x. That's 8.5 blended, and that would be a steal.

[derekli]

so wallop you buy the stock?

[wallop13]

Yes. But keeping a tight leash on it this time.

[Juice004]

Even if you can recover your sales revenue by increased volume you still get a deterioration in gross margin. A company like Concordia cannot afford a decline in gross margin otherwise they are toast and won't have the operating cash flow to service their future debt.

[select1011]

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