RE:RE:RE:RE:RE:RE:If you believe Concordia share price will recover Only 30 actually - I'm referring to you guys as kids because of how idiotic you sound on here.
It isn't an assumption that CXR can defer the payment it is a fact. The 8% would only equal $4M which is couch change for CXR. Free cash flow necessary means monies after interest and the principal payment is made but I guess you don't know that.
Incredibly sad that you keep posting on here when you don't have the facilities to understand simple finance kid.
LaticelnExile wrote: Colt, I'm not sure who you are addressing in your post, but I'd like a stab at responding to your bullishness as it seems like you can't see straight. Your long investment thesis is based on the assumption that if everything goes well, then they can defer half of the earnout at 8% interest which gives them a few more months to complete the purchase consideration to Cinven.... and then they can borrow 30% of their revolver from Peter to pay Paul at another 8% interest, to add to their already existing $120,000,000 H2 interest payment and $9,000,000 LT debt payment. Well Okey Dokey that sounds like a helluva plan! Nothing like going through life levered up to the MAX.
Are you old geezer? As you seem to call everyone a kid here and I gotta say, your cost base is fugly. Do you plan on averaging down to $0 ? It may make you feel less cranky. colt451 wrote: Nice to see the clown show is still going strong. CXR has $145M in cash and will add $100M in positive cash flow in 2H plus has $59M on a revolver to draw down. The Cinven payment is $190M with 8% interest on the 50% deferred beginning on November 1st...ah let me guess math is hard for you?
No worries, keep at it kid.
argentia77 wrote: Colt: Here's another way to look at the math. Suppose I'm long 5000 shares. I sell all my shares at today's closing price of $9.28 and receive 5000 x $9.28 = $46,400. I then buy 5000 call options that expire Apr 21, 2017 with a $10 strike for $1.95/share at a total cost of $9,750 (plus brokerage fees). That leaves me with $46,400 - $9,700 = $36,700 in cash + the 5000 call options. I can now give Concordia more than 6 months to complete its strategic review or whatever and come up with back- to-back positive quarters. I would be in the money if at any time its share price rises above 11.95 ($10 + $1.95) from now until April 21. If it doesn't and the sp continues to sink or stall under $11.95 I still have $36,700 in my account.