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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Comment by Lumberfeverlongon Oct 15, 2016 11:05am
50 Views
Post# 25346868

RE:RE:RE:RE:Manipulation Continues

RE:RE:RE:RE:Manipulation Continues Ranger, the company is not in a cash burn situation right now and may never be.  It should still generate about 1.7 times as much cash as it needs to service debt in 2017 (i.e. $480M/$280).  For it to start burning cash as you suggest about $200M of EBITDA would have to disappear.  I just don't see that happening.  Instead I see EBITDA rising in future quarters as they deploy the extra cash from the capital raise to productuve uses via product launches and product acquisitions.

i
Ranger56 wrote: Lumber, good you come out with DD. At least your putting numbers out there.
At this stage, debt to high, EBITDA matters less than the actual cash burn. A steady decrease in cash over the next few quarters will drive the steady decline of the share price. It does not matter how the cash burns..product development/launch or debt service. Look at case after case with companies with debt to high, its the cash burn and the continuous need for funding that drives direction.
I will give you this, after all uses of cash, if they manage to generate cash which adds to their balance sheet at quarter results, then you win..the stock may begin to recover. The only other driver for the stock to recover, is beats and raises..bullish forecasts based on new product announcements with outlook for cash generation after all expenses.



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