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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Comment by marcroberton Jun 03, 2016 8:10am
226 Views
Post# 24930438

RE:Before you throw in the towel remember MT's closing remarks

RE:Before you throw in the towel remember MT's closing remarksI approach this with a great deal of caution. I have a lot of skin in the game. From personal experience of transactions in tough situations, management can be overly optomistic, not only PR-wise (they embellish) but internally as well until the options they thought they have are not really there. And then if the deal doesn't get done, it doesn't. Things can sideways for a long time. 

THink about Talisman selling for 9 bucks. In hindsight a pretty darn good move given the sector distress, but for CXR its a pseudo-distressed situation as well due to valeant, the business model comparisons, headlines and the shunning of biopharma right now. 

Some here have suggested a takeout premium of 100% or even 200%. THat would be great but unheard of for a company that has been in the news for a while with negative headlines, debt issues etc.

Even for surprise takeouts, + 100 - 200% would be hard to imagine, considering where market valuations are now compared to a couple of years ago, i.e. fully valued by most metrics (except pharma of course)
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