RE:RE:RE:RE:RE:To Friends and Followers..I dumped, but could come back in if the price goes low enough. I was not down that much.
I had been banking on this being a turnaround quarter, where they would actually make money and impairments (although non-cash items) would stop. The reason that I dumped was that, if the revenue and EBITDA continue to drop, as management made clear that they would, at least for the remainder of the year, even a successful restructuring that eliminates all of the unsecured debt, and some of the secured debt, will not save the company. The real problem is that the company's customers have learned that they can buy the medications that it sells, or appropriate substitutes, for a hell or a lot less from other suppliers. What they seem to be relying upon to save them is the new products that they are bringing to market. But revenue from them is still a long way off, and there will be nothing stopping competitors from copying and undercutting them in the marketplace with those drugs as well, as competitors are doing with their existing portfolio.
Remember, this is the world of generics, where there is little or nothing proprietary to protect the manufacturer. The patents have all expired. That said, there is alot of money to be made in generic pharmaceuticals, but the purveyor must be lean and mean and not be burdened by huge debt and overhead, as is CXR.