Post by
drunk@noon on Oct 22, 2015 9:53am
|It's the high debt which is the concern. And the high
interest rate which effects cashflow/earngings and their ability to pay. i.e expected ebitda is in the 500 mill range and interest payments cut that down to 300 mill range in terms of cashflow. Also debt is double market cap, so one must look at cashflow or earnings in terms of EV or enterprise value rather than EPS based on market cap. I am not short, just someone who was looking to buy in to take advantage of the stock drop.
Comment by
JustforFun7 on Oct 22, 2015 10:03am
Haelthcare sector already off the bottom for the day -2.7% and VRX up off the days low. Things are changing intraday now. Looking to see upward movement in less than 5 mins. Those margin changes are having an effect this morning also. JFF7
Comment by
JustforFun7 on Oct 22, 2015 10:09am
Healthcare sector back down along with VRX.. CXR will not be able to escape the downdratt. Sector rotations are like that.. JFF7
Comment by
healthstock1234 on Oct 22, 2015 10:33am
VRX has already the investigation there. VRX will survive,it is just a matter of time. Even if they will confirm that is a fraud there, it is limited to some persons. VRX has many other professionals there, they will found a way to survive.
Comment by
sunshine7 on Oct 22, 2015 10:03am
Interesting that high interest debt and its drag on cash is used as a reason for low SP. Then why would the CEO say they may be looking for 1-2 (smaller) acquisitions in coming months paid from cash flow?
Comment by
JustforFun7 on Oct 22, 2015 10:06am
Sunshine7 ...I remember you. Long time value investor. Didn't you own TVL many many years ago? JFF7