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Bullboard - Stock Discussion Forum Concordia Healthcare Corp. T.CXR.R

TSX:CXR.R - Post Discussion

Concordia Healthcare Corp. > This deal is a game changer for CXR
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Post by Stockcoach1 on Sep 08, 2015 2:39pm

This deal is a game changer for CXR

Share price doesn't always reflect value. Yah it's disappointing for the moment, but just give it some time for the dust to settle and you will see an improvement. 3/4 of the sell action is coming from a few sellers putting some pressure on the SP. Who knows their reason for getting out....remember Donatal purchase, many criticized it, didn't understand it and sold it, yet the acquisition was a game changer for CXR. Well this deal is a monumental game changer. If you listened to the CC, AMCo is a proprietary cash cow that can be tweaked to deliver much more. It has 190 drugs, operates in 100 countries with a sales force and an enviable infrastructure that CXR can build on in future acquisitions. It has a 90% profit margin, coming from a line of drugs that are next to impossible to replicate, meaning "no competition". The hedge fund Cinven took 8.4M CXR shares as a partial payment of 700M USD. Again some investors don't like it and are selling. However, that's 82.45 USD per share, equivalent to roughly 110.60 CAD, or Fridays closing price. So Cinven got no discount on the share payment from CXR. Doesn't that tell you something.
CEO Thompson is not going to give away the farm, and he certainly will maximize the SP when he needs to do a bought deal. He has prearranged enough financing that will give him the bridge and flexibility to go to the market when the SP is reflected more appropriately.
Ultimately CXR is becoming a well respected, diversified money making company with reaches and infrastructure in all parts of the world. 
Isn't that a lovely target for a takeout as an endgame!!!
 
Let's not get too worked up about today, the sky isn't falling. Brighter days ahead.
Comment by cavinsin on Sep 08, 2015 2:57pm
Well put together Stockcoach , your opinion should calm even those that bought last week,, for us that got in early, just a temporary hiccup. Cheers..
Comment by fdfd12 on Sep 08, 2015 3:43pm
didnt catch where you got $82.45 US as the price paid by the company.
Comment by Stockcoach1 on Sep 08, 2015 4:05pm
CXR issued 8.49M shares for 700M dollar payment. Divide 700M by 8,49 M and you get roughly 82.45/sh. All in usd.
Comment by cavinsin on Sep 08, 2015 4:02pm
Stockcoach just added 3K $98.80 proud owner of 15K shares now,
Comment by Stockcoach1 on Sep 08, 2015 7:13pm
Cavinsin, that's great. It's an opportunity you won't regret. Incidentally I also picked up some @ 98.80 minutes before the close but only a fraction of your order to top up my shares into an even number. Great minds think alike...lol.
Comment by cavinsin on Sep 08, 2015 9:33pm
Stockcoach check your inbox,
Comment by Stockcoach1 on Sep 08, 2015 11:05pm
Cavinsin got it. PM'd you back
Comment by cg16 on Sep 08, 2015 5:33pm
It probably wasn't hard to sell the idea of taking shares to Cinven. just had to show them the Revive- Donnatal deal and "nuff said". those boys got 4.6M shares at a value of around $14 at the time. how much is that worth now? bazinga.
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