Lattice wrote: TOMMY1 wrote: Lumberfeverlong - you just copied and pasted my post titled "CRX is fighting back from this short attack - keep calm". No harm in spreading the word as to where we are at with this stock although no one likes plagiarism.
Already done by CXR:
X Make a solid acquisition X Simply put up the goods with solid earnings X Get taken over, or put yourself up for sale On CXR's to do list:
- Institute a Dutch auction buyback
- Increase your dividend
My comments on your three points, "Already done by CXR"
Make a solid acquistion: Concordia incurred crushing debt with the acquision of AMCo. Furthermore, they bought AMCo to reduce exposure to the U.S., only to find their new home in the UK had cracks in the foundation and is ready to be condemned.
When acquiring AMCo, CXR failed to complete its equity offering in sufficient size, and so a consortium of lenders led by Goldman Sucs were forced to make good on its promise of guaranteed financing by extending two bridge loans to equity in the amount of $180M. The corporation lost approx $98M in cash from its balance sheet that it originally planned. The stock price crumbled, and the CEO blamed it on a short attack and being painted unfairly as a price gouger.
This "solid" acquition, created by two heavily debt financed transactions will force a liquidity crunch against its annual interest obligations and two year contingent paper.
Simply put up the goods and earnings: The balance sheet is horrific. Clearly the busines is declining and the company is using troublesome revenue recognition to hide declines. Management and the analysts that cover this stock promotion paint a rosy picture of their performance by what it calls "adjusted EPS" and non-GAPP nonsense. This metric is capricious and misleading to investors.
Put up Company for sale: After numerous claims about the health of Concordia's business and claims by management that it is "firing on all cylinders" and "business has never been better", the company apparently tried to sell itself (see Deveau,
Concordia Said to Work With Greenhill to Seek Buyout Bidders). The buyout rumours from a "source" in Ontario were intended to give the share price a $40 floor price to the stock. But the pump and dump didn't last longer than a fruit fly's life span, as buyers were reported to run from Concordia's data room. As it sits now with the Brexit outcome, the probability of a buyout would require Thompson to pull a rabbit out of his hat.
Every company that has ever been shorted on its way to zero was supposedly on the brink of being acquired on the way down.
Cheers.