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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Comment by investatbeston Jun 22, 2016 9:17am
209 Views
Post# 24986634

RE:Technical Analysis

RE:Technical AnalysisYour full disclosure is appreciated.  TA, however, has a difficult time being deciphered with this stock due to what is actually moving this stock.

The behaviour of this stock is not being dictated by fundamentals.  As a result, TA will not give you the best analysis of where this stock could go (that, and the company is still quite young).  Based on a 125 SMA technical that I like to use, buying this stock under $40 is cheap based on that technical.  As many analysts have already pointed out, this stock is now trading at a multiple between 4-6x depending on who you as (my numbers are rounded and generalized, don't crucify me).  Look at stocks in the same sector and similar types of business and compare the multiples they are trading at.

Before all this non-sense, recall May 2014 when the stock was at this price.  It then proceeded to march it's way up to $80+ in one year's time.  Will that happen again?  I doubt it, but it would be nice.  If CXR can keep itself away for being associated with VRX, it can do well.  I see the oil rally ending near the end of this year, which could see larger money rolling back into healthcare (again I'm speculating, but who isn't).

This stock has been put into the limelight as a result of VRX.  This shouldn't come as news to anyone on this board and if it does, you haven't been here long enough.  For a while, people thought CXR=VRX and therefore, mass exodus.  The stock is stuck trading sideways since the falsefied BO rumours.  A few people took money and ran, others got burned (tis the way of the stock market).  BO could still happen, but as time ticks away, there seems to be less of a chance that this will happen

As a trader, you'll want to look at a smaller range of data.  You also shouldn't be interested in TA if all you're doing is trading.  This stock can be counted on for consistent daily/weekly swings of 1.5-3%.  If you're active and watching, then you could make those numbers consistently over a week.  

I trade in the months of July and August and invest for the rest of the year.  CXR is paying me to wait and I am happy to do so until it breaks out or gets bought out.

GLTYA and DYDD
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