CXR
forget about recognia, it says $18-$24.
In my opinion, there is GOOD and BAD with CXR.
THE GOOD
WIll do $6.50US which is $9CAN.
WIth a PE of 15, we get a TRUE price of $135CAN.
This is fair value TODAY.
THE BAD
WIth their 3.5B debt, they will only pay it off in 8 years (according to Andrew Mcreath).
Because of that, they will only have organic growth of 8% per year.
Sure they can buy small "tuck in acquisitions" as they have said, but a BIG MACHINE that CXR has been after buying AMCO, small tuck ins won't add much to the top or bottom line.
CONCLUSION:
CXR should be $135CAN and once there, will only move up about 10% until a good portion of the debt is paid off.
Then they can go after new MONSTERS.
any comments?