RE:RE:RE:RE:Could this turn green today?
healthstock1234 wrote: Exactly, and the high interest rate finally was exact the rate 7.5% not 9.5%.
We knew all yesterday,so why the stock is/was down today?
Make no mistake, that last note offering was priced at 9.5%. The 7.5% is the overall rate on the total debt, which is a lot more reasonable for a company with such a high growth trajectory!
Mangement worked their butts off to complete the transaction ON TIME! So it's my feeling it cost them points on that debt to complete the transaction. But they got it done on time!!!!
It is my belief the market was getting cold feet on the deal and were setting up in case the deal didn't go through or through on time (short,shorts,longs). So the market initially reacted to the high cost of that last note . Normally that would have been a blip.
So today everything is a known about CXR and its all good!
However the share offering price, complexity of the deal and then Valeant provided a perfect situation for the big boys to play and that's what we are seeing.
I don't like this kind of -rap but that's the way it is.
Add to that we now have confirmation from the CEO the numbers around the recent deal are still good, CXR doesn't get much revenue from the U.S. (unlike VRX) and he will be providing more color when the blackout time has ended.
I don't have a clue what the market will do tomorrow, but I do know that there is nothing wrong with CXR. With their projected earnings the pps will be back up into the $70's once the cash from the deal starts flowing.
So the players, who make a mockery of the stock market will play while they can and basically steal money from hard working people who actually had to work for that money :(
In the end I'm comfortable cherry picking the price I pay for the shares I've been buying, having a hard time believing my stinker bids are actually getting hit!
I'm NOT going all in or anything silly like that, but I'm quite confident we will see the pps back up into the 70's once the dust settles.
In the mean time if you bought the offering or at a price around it, don't waste your money selling at these levels as the fundematals have not changed one bit!!
Of course this is just my take on the situation and no one knows for sure what will happen going forward!