FullReversal wrote: I hope nobody takes the Montley Fool seriously. These guys, like so many low grade web sites targetting the average investors, are horrid.
The most recent article published today has these three points as positives for CXR! The author obviously has not kept up with recent events!
"Fortunately, the company has had three bits of good news.
The first is that Steve Cohen, one of the world’s best hedge fund managers, has increased his holding in the company by more than double. On March 31, he owned 65,100 shares. By the end of June, he had increased that number to 1.2 million. And by the middle of August, he had 2.97 million shares. That’s nearly 5.8% of the company. This tells investors that he sees something in the company."
Cohen of Point 72 Asset was fooled by management like a lot of us! That was before the surprise quarter just after management was saying they were "firing on all cylinders" but then writing off over half a billion in recent acquisitions by "surprise". Do you really think Cohen is still net long? Looks to me like he's also now shorting CXR and once his long position gets flushed and made public, he'll cover his short unless he's also "shorting to zero"?! Why do I think he's net short? Seem that a 0 shares held after declared long purchases indicates he's either net zero or negative. Funds don't have to report short positions. He might also have close ties to Goldman and be the guy going for liquidation by buying all the Notes?
"Second, according to Reuters, the company is planning to divest a minority stake to a private equity firm. While details of this are not yet known, the investment would allow the company to bolster its books and hopefully take a chunk out of its debt."
Again, someone who has not read the offering by Goldman. It's selling the First Lien Notes that have priority over all other liabilities (except Amco not yet deeded to CXR it seems). This flushes bond and shareholders in the toilet on liquidation. Concordia won't have the money to buy stamps in 2017, let alone pay down the debt.
"And finally, the company anticipates that it will complete 60 total product launches by Q4 2018. These will all be outside the United States, which will continue to help the company diversify its earnings in other parts of the world. As these products gain market share, they should help elevate the company’s earnings and help it pay down the debt."
Again, this Fool just repeat the BS from management. These are all jacked up priced drugs that have "burnt out" and are under the regulatory microscope both in the US and UK! Most, if not all, are reformulation of existing drugs. Taking a pill to a caplet or liquid! Avoid fool.com and fool.ca as much as you should avoid the uneducated SH "articles" and uneducated posts here! Sickening! Do your research by reading the regulatory filings and don't let your loses and "hope of recovery" cloud your judgement!
I'd say the stock price has a 9/10 chances of going to zero or pennies by early next year. The debt is so high, the best they an do is flush it and that takes the shareholders out first.
But you have to have a few "delisted" stocks under your belt to understand.