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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Comment by visionaryfoolon Feb 04, 2016 3:37pm
115 Views
Post# 24525531

RE:RE:I disagree

RE:RE:I disagree
Yeah I gotta say FDFD, gotta learn basic finance. There is an optimal debt structure for every company. A company with all equity and no debt will be penalized by the market for not using its balance sheet efficiently.

That's why CEO said the company's optimal debt is between 3x to 4x (or was that 4x to 5x). If they go to 2x, then the multiple they get is much lower than optimal debt. The current multiple reflects a higher debt package which creates uncertainty in market (i.e. company overstretched).

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