RE:RE:The Comapny Performed, Management disappointed.
If CXR is confirming guidance of around $6 per share for 2016, then this is theoretically a very cheap stock at $35 - $40 per share........I'd rather have a CEO that walks the walk instead of talking the talk - the idea the Mark Thompson does not communicate as much as other CEOs doesn't necessarily mean the company is in worse shape than presented or he has something to hide - could just mean that he is focusing on the business and trying to deliver on guidance for 2016 - Now that CXR is a global company, he's probably putting in a lot more travel hours.....CXR's forte seems to be in marketing and volume sales to drive revenue and profit, so any legislation by the U.S. Congress will likely have relatively less effect on CXR than on others in the sector since CXR prices their drugs at or below the average for a given medication - it will be the outlier medications in terms of price that will likely draw the eye of Congress......As far as FX is concerned, CXR mainly does business in the U.S. dollar and the English Pound, so there is somewhat of a natural hedge built in with these two major currencies........I don't want to paint CXR as a rosy slam dunk - the debt is an issue along with the question of whether they paid too much for AMCo. given the purchase was executed around the time the bottom fell out of the Canadian Pharmaceutical industry.....Nonetheless, CXR seems to be trading with VRX, and I don't think one can make the argument that they are similar companies: VRX apparently has a history of stripping down acquisitions (in terms of employees at the target company) to the core and jacking up prices by enormous amounts.....CXR tends to buy individual drugs, not companies, and targets their price at or below what the average competitors charge,,,,CXR is also retaining most of the workers at the Mumbai Center because they like what they do and want to keep that format going......Finally, one has to keep in mind that if you are a buy and hold investor, this stock will be very volatile and you will have to stomach the large swings in share price coupled with confidence that MT and the company will deliver on 2016 guidance.......if it does, I think investors will gradually catch up with the story and price the company accordingly......It is rare to find a stock with this much growth potential trading at a price that seems to indicate great value.......Finally, I read that the 60 or so new products that are targeted to come online are not expected to deliver big profits in the near term - Instead, that CXR will focus on marketing existing drugs and try to generate increasing sales volume to drive earnings over the short-term......