CXR Stock Pickers Graveyard
From Stockchase.com.......TOP PICK, James Telfser, February 23, 3016 ($39.50): "A rollup strategy that went bad. There have been so many pieces of negative news that have gone out on the pharmaceutical world, that they are missing the point of why this company made their last acquisition. It allowed them to dodge a bullet by getting out of North America and becoming more global. Trading at 4X earnings is basically saying that the company is going out of business, but next year they are going to generate $500 million in free cash flow, and will be able to de-lever pretty quickly. This is a business that can support a high debt load. "................TOP PICK, Ryan Modesto, March 3, 2016 ($39.45): "A roller coaster stock. There are a lot of political headline risk concerns where people are saying US politics are going to start hurting the healthcare sector, but this company is only 40% in the US, the rest is international. They have 60 products and no single product is above 10% of total revenue. This is priced like they are going out of business. Priced below BV right now and 6X next years earnings. Generating cash flows. Have a lot of debt, so there is risk there but the company knows it and have stated their debt repayment schedule, and are already repaying that."..........TOP PICK, Jason Donville, March 7, 2016 ($43.69): "This is trading on 4X earnings and less than its projected 2016 BV. Stocks are never that cheap unless they dont have an issue. This does have an issue, too much debt. Management has been appearing at conferences explaining they have made progress in paying down debt. Jason thinks that over 2016, as they pay down debt each quarter, the stock will be able to go through a fairly significant re-rating. Institutions are going to have to take a look at this. A lot of money is going to come back into this name as the debt decreases. If they can pay down their debt, then somebody will buy them out."............TOP PICK, John Zechner, April 4, 2016 ($33.68): "It is almost like you are getting the Valeant (VRX-T) valuation, without the mess. It is going at basically 3 to 4 times earnings, with an enterprise value at about 7 times. They have the big debt at about 5.5X debt to EBITDA, which is a risk, but the acquisition they did is doing better than expected. Thinks they will generate enough cash flow to be able to start paying down debt. ".........