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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Post by healthstock1234on Oct 27, 2015 11:25am
174 Views
Post# 24230441

VRX could be on a return to growth,2016-2017

VRX could be on a return to growth,2016-2017https://seekingalpha.com/article/3607126-why-we-took-a-very-small-long-position-in-valeant
Of course we are not comfortable with the company executives using alternate egos on email. Of course we are not comfortable with the company naming all of its subsidiaries for strategic chess moves. However, at the end of the day, Vertically Integrating these types of pharmacies into your business isn't technically illegal and we believe VRX to have operated in a grey area that is going to result in fines, not jail time.

There are 400 questions that you could write about Philidor and its relationship to VRX. However, all of that falls under the umbrella of Philidor, which is still a relatively small part of VRX as a whole. We are sure that there have been some issues with the subsidiaries, and we still believe there is a significant amount of risk here.

But we had to ask ourselves whether or not this controversy was going to have an effect on the company's ability to sell its products. We don't think that it will. In other words, we expect the company to continue conducting business as usual on a customer level while this plays out. The cash flow stream should stay uninterrupted for the most part, and the company should have a chance in the meantime to start to pay down its debt. Even if the company moves to a business model where it is not continuing to grow as aggressively, our model still has VRX earning somewhere between $14 and $17 per-share. Here is a full chart of estimates from Nasdaq.com.
....we believe that the company could be on a return to growth, although not as aggressively, as soon as late 2016 or early 2017.

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