Too Big Too Fast....?
According to tmxmoney.com, CXR started trading on the TSX on December 24, 2013 at less than $7 per share......In less than two years, their shares were trading at over $100.......Now, unless they acquired all these companies at ridiculously low prices, you have to wonder whether their current debt levels should not have been given more consideration re. how much CXR is worth per share.......When a price of a company shoots up so high so fast, it's usually prudent to see it as a red flag, especially if you are considering purchasing the shares.......and perhaps taking your money off the table if you made a good buck off it.......Also, there are so many companies who are doing the same thing nowadays (not just Valeant), so the competition to grow via acquisition is becoming more intense......