Pays $1.2B for Covis April 2015, and writes-off 1/2 Aug'16?JuniorBull, I'm seeing how much to short this dead cat bounce once it's confirmed. But I haven't made the big move yet.
Bulls, please explain how this works? Company spends a lot of money in 2015 for two companies,
Covis for $1.2B April 2015, and just 16 months later, surprises investors and writes off half because of "unexpected competition"? I've never seen a company insult investor's intelligence as much as this one. Unexpected? These sales cycles are reported weeks or months in advance. The write off impacted two of the key products from the Covis acquisition. How can anyone with any intelligence defend this?
Really? And you are telling me that investors will buy into this when days prior to this failed quarter, Thompson was saying the company was "firing on all cylinders", which was clearly a blatant lie and manipulation to get investors to buy into Concordia as Thompson was selling through a pre-planned shares for loan deal that has yet to be properly disclosed!
AMCo was acquired October 2015 for $2.8B plus that $220M earnout due in a few days which they won't be able to pay in full so will have to use expensive bridge loans or defer a max of 50% until February which is just five months away. And if they can't pay the $110M in five months, then what happens to AMCo? The transaction is cancelled and Cinven regains the portfolio? It doesn't seem like they have given it up! Isn't the "play" here a little too obvious?
https://www.cinven.com/sectorfocus/healthcarecurrentinvestments.aspx
Even more "macro" concerns, if they wrote off 50% of the assets of Covis in 16 months after being so positive back then (press release below), when would they write off AMCo's overpriced drugs? Also 16 months from acquisition date? which would be ..... February 2017, in five months!
This seems like the perfect storm to sink this ship. And who is the captain created the storm and is sailing right into it? On purpose? I judge people by what they do, not what they say and this CEO has done a lot of really, really bad moves for shareholders. He can say anything at this point and he's just going to dig deeper in his own quicksand.
The worst is yet to come. And in the next five months, Concordia's inner dealings will start appearing in front of judges and media starting in less than two weeks. And remaining funds will exit CXR this month to not have any of the toxic stock on their books. Seasoned investors don't want until the last minute for tax season selling which is Q4, not December as the more novices think.
And you can bet that any remaining investors will look at the facts around this company and will want to go on the sidelines (or short) to either escape the storm or benefit from it.
There are zero positive concrete facts here. None. But I don't want to lose money trying take a large short position so honest bulls, try again please. I'm ultra bearish on this stock thanks to one person. Thompson. When insiders sell large amounts (in the tens of millions of dollars), only a complete and utter fool would be buying.
Thompson is a bad salesman. And if you continue to buy his BS, you're a dumb client. There is zero credibility left for this fool. Zero.
TORONTO, April, 21, 2015 /PRNewswire/ - Concordia Healthcare Corp. ("Concordia" or the "Company") (TSX: CXR) (OTCQX: CHEHF), a diverse healthcare company focused on legacy pharmaceutical products and orphan drugs, today announced that it has completed the previously announced acquisition by the Company of 18 products, being comprised of 12 branded products and five authorized generic contracts and a product distributed by a third party in Australia pursuant to the terms of a distribution agreement, from Covis Pharma S.a.r.l and Covis Injectables, S.a.r.l (collectively, "Covis") for $1.2 billion in cash (the "Acquisition"). All financial references are in U.S. dollars unless otherwise noted.
"The portfolio of products we acquired from Covis feature stable revenue, strong margins and free cash flow," said Mark Thompson, CEO of Concordia. "These asset attributes strengthen our financial base, which should support our plans to continue building Concordia through organic growth and potentially more accretive, disciplined acquisitions."
The distinctive product portfolio Concordia has acquired includes branded pharmaceuticals, injectables and authorized generics that address life threatening and other serious medical conditions in various therapeutic areas including cardiovascular, central nervous system, oncology and acute care markets.
Key products are Nilandron®, for the treatment of metastatic prostate cancer; Dibenzyline®, for the treatment of pheochromocytoma; Lanoxin®, for the treatment of mild-to-moderate heart failure and atrial fibrillation; and, Plaquenil®, for the treatment of lupus and rheumatoid arthritis