Concordia Healthcare Corp. T.CXR.R

Great Value

[greatplay]

With all the noise, you still can see current company's value, let's break it.

In March 2015, before big acquisitions, company was worth around $40 US a share which brings around 2 BLN value for the company, no big debt.

Acquisition list
https://en.wikipedia.org/wiki/Concordia_Healthcare

Since then, 
March 2015 - Covis $3.5 BLN
September 2015 - Amdipharm - $1.2 BLN


Per latest fool:
One of its largest acquisitions, Amdipharm Mercury Ltd. for US$3.5 billion, gave it access to over 100 countries–something the company didn’t have before. And it also bought and integrated 18 products that it acquired from Covis Pharmaceutical for $1.2 billion.

https://www.fool.ca/2016/08/26/is-concordia-international-corp-a-smart-buy-at-these-prices/


Current cash metrics:
DEBT: 3.26BLN
Market Cap: 450MLN
Cash on hand: 145MLN
Write-off/Adjustment: 567MLN

Bottom line:
Adding up cash to market cap brings to current vlaue of $650 MLN;
Value was 2 BLN before acquisitions
Then we have acquisitions 3.5 + 1.2 bln = 4.7BLN

So, without write-off value should be 4.7 + 2 BLN = 6.7 BLN

Current value: 3.26 BLN - 650MLN = 2,6 BLN

Summary:
Yes! company overpiad for companies that it bought, it's a fact, yes they did a write-off, but all of these went on shoulders of investors who bought it at $40-50 and not who is buying now.

6.7 BLN - 2.6 BLN - 550MLN = 3.6BLN

3.6 BLN that's how much company is underpreciated, let's say even half of that, sting brings us to 1.8Bln and that's brings to $25-35 level per share.

No wonder Blackstone, Apollo and other were interested to buy it at that level!!!!

Market will lead to right value either thru moving share up or buy somebody coming along