RE:RE:RE:RE:RE:RE:RE:RE:RE:Did CXR hit a home run with The purchase of AMCo?I do not presume to speak for notwrong, and if you start by name calling you are saying you don't really want a response, but I will try to provide one.
I don't think the stock has been unfairly attacked, I think it is now being valued right. Where it goes from here depends on one huge IF.
IF they can pay down the debt they may very well be worth $100 a share or more after they have paid it all off. IF they struggle with paying of the debt they could be worth $16 a share, or even less in a few years.
With that debt load, one stumble, one misstep, one valeant type scandal, could send the stock down the drain. And with a low stock price they won't be able to issue new shares to pay off the debt, so they would be stuck in a revolving door of debt until the credit crunch becomes too much and they have to file for protection.
So, the price now is the balance between the best case and worst case scenarios. If they are able to deliver results over the next 3 years and bring down debt to a reasonable level they MIGHT be fine. But if the executives (with very little international experience) stumble or there is a major negative development things could go down in a hurry.
I know everyone on here talks about the US only being 40% of their business now, but now most is in the UK. They might leave the EU, that could be a big risk, but even bigger is this. What if the people in UK start to read about what is happening in the US with drugs. What if Clinton gets in and drops the price of drugs and the president of the UK decides to do the same thing. What happens to CXR then? With such big debt and prices of drugs in UK being slashed? It would not be good. I will let you draw the conclusions.
Pj1958 wrote: NUTBAR ....still no concrete reasons for your views.... At least the gang is offering concrete reasons why this stock has been unfairly attacked and why it should get back to its glory .