RE:RE:RE:RE:RE:CXR TOP PICK - John Zechner today on BNNThe worry about the debt is a legitimate one. It's just overblown by shorts who call for the bankruptcy of Concordia. The company bought AmCo at a very richly valued price, no doubt about it. It was during a sector high and investors were seduced by the M&A model. I don't think the 117$ CAD high was justifiable, on a fundamental basis anyway. They didn't have AmCo yet and it wasn't integrated at all. It would make much more sense if we were to see 117$ CAD in the Q4 of 2016. For that, they'll need to prove that it's worth what it is. Here, the challenge for the company will be to make the most of it in the years to come. Shorts maintain it's impossible to repay that debt and make money with AmCo under the current market environment and sentiment. We'll see about that. I think they will and the SP will climb up and shorts bail out to another target.
regardless wrote: FDFD12
the debt was always mangeable especially with the cashflow they had....some posters made it seem like they had no choice but to sell..WRONG!!!!
so now that zechener reveals what he did...he would have mentioned buyout but since he dindt there is obviousely no intention on selling....
why would you sell out at 50-58 when we were at 117$....with a more than manageable debt...with drugs that are meeting endpoints and revenue comming in the door every month in the many many millions....
there is no reason to sell out..at least not at less than 80% of the 52 week high....even then why would you?....