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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Comment by Lumberfeverlongon Aug 29, 2016 9:01pm
159 Views
Post# 25189216

RE:Who said a Deal Was Done?

RE:Who said a Deal Was Done?Are you making fun of yourself 007? You joined last week and were the one who posted non-stop about an impending deal. I have no doubt you are part of the short gang. Throwing out rumours of an impending deal and then asking why it hasn't happened. 

It would be nice if the company concludes a deal that improves its balance sheet, but the reality is that the company is generating enough cash to get over the Cinven balance of sale payment. Taking the midpoint of the revised guidance, the company should end the year with over $50m in cash and, assuming no growth in 2017, it should  generate in excess of $200m additional cash. This is not a company that should be trading at 1x Ebitda. The short campaign is losing steam and a serious reversal is around the corner and sooner if the company announces a deleveraging or revenue enhancing transaction. 

Deal or no deal, this is ridiculously undervalued. You could get a nice short term pop or very nice returns over the next 6 or 12 months.  The downside from here is minimal. 

Shane007 wrote: weren't we suppose to see a deal announced today.   have the traders who posted nonstop about a great financing deal last week all abandoned ship on lack of any news    SP is not behaving like there is any deal


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