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

TSX:CXR.R - Post Discussion

Concordia Healthcare Corp. > Okay, rock07. Then convert $3.5 Billion US debt to $CDN
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Post by drunk@noon on Oct 27, 2015 10:14am

Okay, rock07. Then convert $3.5 Billion US debt to $CDN

and you have $4.5 Billion cdn in debt, so your 490 milion est 2016 cashflow, which ignores taxes, and means DEbt is an enormous 9 times pretax cashflow.  Approx 10 times aftertax cashflow.
DO YOU NOT SEE HOW HIGH THAT RATIO IS.  On top of that the stock is expenses when  one compares EV and cashflow. See my previous posts which pointed this out.
Feel free to point out a flaw in my calc.
Comment by donaldspice on Oct 27, 2015 10:34am
At some point they are going to issue more shares in order to pay off debt. The next year will see some growing pains but if you are looking 3-4 years out there is huge upside. Thompson is a smart man and is in this for the long haul. Longs should just buy and come back to these boards in a couple years to mock the naysayyers. 
Comment by JustforFun7 on Oct 27, 2015 10:44am
I agree that CXR will  issue stock to reduce debt and the market will thanks them for it (higher share price). It's just too leveraged right now.  But at what time frame / price will they do this?  I can't see  any compelling reasons  why they have to do it quickly.  On the other hand I can see them wanting to as soon as they can get a fair price for the ...more  
Comment by healthstock1234 on Oct 27, 2015 10:56am
I think you are right. I am just looking all the time for the news..
Comment by visionaryfool on Oct 27, 2015 11:21am
I disagree. My understanding is that Management's MO is to pay down debt using cash flow from operations as they have been doing from their acquisition. They reserve their equity for last means as it is highly dilutive and counter to creating shareholder value. They can justify it for an acqusition, but would find it hard to pay down debt only if they came to the market with the prospition ...more  
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