TSXV:CNJ.P - Post by User
Comment by
LongRoadon Jun 01, 2011 11:51am
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Post# 18656342
RE: What the hell is going on?!?
RE: What the hell is going on?!?Hi. I think the market has re-priced Cangene to lower values as a result of the following.
1) Last quarter's EPS was possible due to shipments on government contracts, which management now says will only be repeated in very limited quantities (re-supply).
2) The rest of the business does not get the company to profit or break-even. Note the results from Q1 when no shipments on government contracts took place.
3) In April they laid off 40 more individuals, no doubt there will be a restructuring charge in Q3.
4) The company presently has no CEO and its future direction is very much uncertain.
5) Present Management/Board have not given shareholders any reason to be optimistic about their strategy.
In summary, while Cangene is asset rich, it is obvious that in its present form the operations are not viable and the company is very much lacking direction. To use the often mentioned term, this company is presently "dead money". Your choice is to hold on in the hope of a turnaround or sell.