Post by
Lumberfeverlong on Nov 14, 2016 12:31pm
Bankruptcy is Not Imminent
It is because bankruptcy is not imminent that this stock is starting to recover. The Canada meant has $490M in the bank with unfettered access to another $60M under the revolver. Cinven payments amount to about $180M (all in USD). The company has plenty of time to right the ship and the market is finally realizing that. Does the company fully recover and prosper. Your guess is as good as mine, but the market is now saying that the odds of a recovery are better today than they were a week ago. Why? I think it's because we will not see government action again not Pharma in the US over price gouging. Second, there is a changing tide on the British Pound. The latter could be very meaningful for the company since most of its sales are in GBP. GLTA.
Comment by
adamchess on Nov 14, 2016 2:37pm
Revenue in the US keeps going down and there could be a major downturn in UK pricing? How likely are they going to maintain revenues by (new) product expansion and territory expansion? They don't seem to even have an idea themselves based on no guidance for 2017.
Comment by
greatplay on Nov 14, 2016 2:46pm
Everything you heard bad was done just for one sake, lure in shorters... before it was opposite... In reality, they got new money $330MLN, means business will be OK, maybe not good, but will continue to make money, last quarter company increases money on hand from 145MLN to 162MLN... not a lot, but it's not a sign of failing company
Comment by
Juice004 on Nov 14, 2016 2:51pm
And dont forget last quarter they they paid out the 11M for the last dividend payment or cashflow would have been higher
Comment by
greatplay on Nov 14, 2016 2:59pm
Removing dividend hurted for long term investors (could have been the wrong move), but it kept a lid cashflow, now we are better off...