RE:What Kevin O'Leary said is worrisome Well, to begin with, its hard to judge the value of a company that succeeds from multiple acquisition of other companies by using a traditional value model. Therefore, their value is judged by their past performance comparing to their sector.
In the pharma sector, in the case of CXR, the only number I as an investor will look at is their earning and profit.
If CXR puts the meat on the table consistently, that's all I need to know. 3rd quarter release is NOV-13th-2015 the next friday.
dude.
fdfd12 wrote:
He said "stocks like VRX and others who buy companies and sell drugs will have a lower multiple for many years because of this VRX problem and Hillary CLinton tweet."
Meaning, stocks use to have a PE of 15 to 20 now will now have compression.
Meaning they will only trade at multiples of 5-7 cause of this.
HCG in home mortgages has traded at a PE of 7 for a few years now.
I hope this is not the case because if it is, CXR will not see 60 for a year.
Comments please.