Post by
Carlos66 on Nov 02, 2015 11:14am
irrational exuberance
let's not get too far ahead of ourselves regarding CXR's future.
A guest from CIBC had a list of companies whose business model is growth by acquisiton ranked by a different set of metrics & he mentioned that going forward there will be more scrutiny of acquisitions etc.. That will slow down growth for all regardless of the sector they are in with only those that are not over-leveraged & in debt.
That being said it seems that the Citron analyst Left has backtracked from his inflammatory statement on Friday that the end of the world is coming to VRX probably according to a side comment from Amber Kanwar, his lawyers told him to dial the rhetoric back a bit. Now he says that this will be his last comment on VRX & that he will be moving on to other targets. I wonder which other Cdn. companies he will focus on next.
Hopefully with more & more companies (banks, MMs) coming out with new & higher price targets now that the rush to judgment/rhetoric is waning & a return to sound/sane economic/financial investment advice.
The company should continue to expound the difference between VRX & CXR's business model & come out with frequent NR about what & with whom they are doing business, because as I said above more scrutiny by all those who give financial advice including gov't regulators/PBMs who will scrutinize prices they have to pay.
An unintended consequence...IMO... might be orphan drug status pricing. Not related
I suspect CXR recovery might be slower than expected not unlike the oil sector earlier expectations of an oil price recovery... lower for longer now.
1st we must get above $60. (maybe by yearend) & then we can talk about $100. & more; so talking about targets above $100. now are more talking your book than anything else.
carlos
Comment by
sunshine7 on Nov 02, 2015 11:28am
Rational thinking, however, I do not think there is a parallel to oil and gas stocks. O&G tanked on fundamentals. CXR tanked on market segment sentiment. O&G not returning anytime soon. CXR looking to good gains as sentiment moves up. Agree that it will take longer than some here think.
Comment by
adamchess on Nov 02, 2015 11:29am
carlos: It takes less than 5 minutes to determine that Concordia's business model is excellent in the short and long-term and their cashflow easily covers their interest and debt requirements for all time periods. With excess cashflows they can either pay off debt quickly and/or make further investments in product to improve the business even further. A no-brainer at these prices.
Comment by
ruben12345 on Nov 02, 2015 11:47am
i take your view that it takes a while and not a one week jump to $80. However, your other comparisons and neglect of fundamentals is not correct