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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Post by retiredcfon Mar 08, 2016 8:36am
101 Views
Post# 24633440

Donville

Donville Not sure whether all of this has already been posted but here you go. First stock in the clip. As can be seen, it's also the third largest holding in his fund. GLTA

https://www.bnn.ca/Video/player.aspx?vid=823955

Top Picks:

Concordia Healthcare

Concordia Healthcare is an international pharma company that trades at 4.0x 2016 earnings and below its projected year end book value. Concordia has not been plagued by pricing or accounting issues but it is highly levered and this explains its discount valuation. However, as the company moves through 2016 and pays down its debt, we think Concordia will re-rate significantly.
 

CXR-T 2016-03-07 TOP PICK Jason Donville
 
This is trading on 4X earnings and less than its projected 2016 BV. Stocks are never that cheap unless they don’t have an issue. This does have an issue, too much debt. Management has been appearing at conferences explaining they have made progress in paying down debt. Jason thinks that over 2016, as they pay down debt each quarter, the stock will be able to go through a fairly significant re-rating. Institutions are going to have to take a look at this. A lot of money is going to come back into this name as the debt decreases. If they can pay down their debt, then somebody will buy them out.
 
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Price:
$43.690
Subject:
GROWTH STOCKS
Bias:
UNKNOWN
Owned:
Yes

Total Return Average: -1.33%

Fund Profile
 

Donville Kent Capital Ideas Fund

1 Month: Fund -8.8%, Index* -1.1%

1 Year: Fund -7.2%, Index* -9.9%

3 Year: Fund 18.9%, Index* 3.4%

Performance as of: January, 2016

* Index: S&P/TSX Total Return Index

* Fund’s returns are based on reinvested dividends and returns are net of fees!

Top 5 holdings and weightings:
 

CGI Group – 12.00%

Constellation Software – 11.6%

Concordia Healthcare – 8.7%

Open Text – 6.2%

CRH Medical – 5.4%


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