RE:CXR<
A company's finances are no different from a home with a mortgage on it requiring financing.> A company
IS VERY, VERY different from a home.....
7.5% is high but not risky.It depends also when you get 7.5%, to finance what?!In Concordia case, it is to finance a big acquisition for her size.
I understand your concern, just wait to see consolidated financial statements. More than it, to see the perspective for this company.
My friends have a small company and they pay 9.7% for a truck.Last year they paid 11.4%.Just to see a difference, a very small company and Concordia.
notwrong wrote: must stop making new acquisitions, reduce its debt, and communicate the intention to the market. I am not criticizing the company's development strategy, which has been fine and dandy, but the sentiment and situation have taken a topsy-turvy turn in the aftermath of the short attacks on VRX. Currently, it is required to pay off it debt at 7% plus. Considering that the company has shown to be a low-margin going concern so far, the 7% plus interest payment is a huge burden and its high debt is making some retail investors holding the stock very nervous. Such a situation could be taken advantage of by short interests to create fear to trigger panick selloffs from the herd. What it should do is to focus on improving profit margins and reducing debt.
i can give an analogy, what would happen if the Canadian mortgage rate jumped to 7%. I guess many families would lose their homes as their family finances turned from positive to negative as a result. A company's finances are no different from a home with a mortgage on it requiring financing.
The same applies to the pumpers, some would move back to their mothers' basements and some got their homes foreclosed as the mortgage interest rises to 7%.
i would not rush in to buy any stock based on pumped up one-sided messages put out on a bullboard controlled and monopolized by several pumpers. Retail investors should report the monopolization of the board and the suppression of legitimate posters to Stockhouse management.
just an opinion, please do your own DD.