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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Post by sunshine7on Nov 17, 2015 10:57pm
297 Views
Post# 24299533

Beacon Securities - recent note to clients

Beacon Securities - recent note to clientsThe re-valuing of the sector, coupled with Concordias substantial debt load, probably means the end of its financial arbitrage as a means to continue its non-organic [growth] for the foreseeable future Doug Cooper, an analyst with Beacon Securities... This [heavy debt load] has forced the company to change its strategy from a growth-through-acquisition story to purely an internal growth story, driven by the new product launches at AMCo. ... With no imminent acquisition catalysts, we believe the shares will be range bound. .... the old story repeats itself - CXR has acquires products not companies. Amco was an exception and along with it came operational synergies and 60 product pipeline. No mention of enough cash flow to put a serious dent in the debt in short order or forecast growth in sales. No mention of ridiculously low trading multiples. I wonder what he is promoting these days?
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