Concordia Healthcare Corp. T.CXR.R

RE:RE:RE:Something to think about

[derekli]

so wallop you buy the stock?

wallop13 wrote: They will sell the company. No point in trying to make a go of it with debt like that. I'm here for the assets now. Amco is a nice asset, it should be worth at least 11x in a sale. North America should also be easy to sell for 6x. That's 8.5 blended, and that would be a steal.

LatticelnExile wrote:

K9Justice wrote: Here is another way to look at it.  What happens when housing prices are high?  You have a smaller market of consumers and in every business you need consumers to increase profits. When they drop to a reasonable price, house sells go up.  Construction goes up and so on.  What happens when a new tech product comes out.  I remember when VCRs first came out they were $700.  Very few could afford them.  Then when they dropped in price they became a household item. 
 
What happens at the grocery store.  Safeway is a high priced store.  When I go by there very few shoppers.  Loblaws/Superstore  lower price store.  This store is always packed.  I worked in pharmacies for years in the dispensary.  There were many people who needed prescriptions filled and could not afford what they needed and did without.  So if brand X prescription what $100 & we sold 25 a month.  Then brand X dropped their prices to $50, we then would sell 100 a month.  Yes we had to sell more, but it increased our sells, increased traffic into our business for those add on sells also.  So are drops in prices all that bad, I personal think NO, not from what I see how it drives sales up. 

K9, In CXR's case they are too tight so the examples that you use are misplaced.  Cash on hand in 2H will just meet their obligatons: $231mil earnout plus the $9 mil LD debt payment.  They can only draw $60mil on the revolver before triggering covenants.  Do they do not have the wiggle room here to have drug prices lowered  - especially since volume is declining.