Concordia Healthcare Corp. T.CXR.R

What Kevin O'Leary said is worrisome

[fdfd12]

He said "stocks like VRX and others who buy companies and sell drugs will have a lower multiple for many years because of this VRX problem and Hillary CLinton tweet."

Meaning, stocks use to have a PE of 15 to 20 now will now have compression.
Meaning they will only trade at multiples of 5-7 cause of this.

HCG in home mortgages has traded at a PE of 7 for a few years now.

I hope this is not the case because if it is, CXR will not see 60 for a year.

Comments please.

[visionaryfool]

Even if that is true, you have to remember, its a double edge sword. Lower multiples will make acquisition cheaper as well which would mean even better bargins for shareholders in terms of free cash flow generation and in turn means faster debt payment. My personal opinion is that O'Leary is not a reputable investor but more of a media personality. I would take what he says with a grain of

[calgamilton]

Couldn't agree more about O'leary. Personally, I have never known him to be right about anything. He is an entertainer. Nothing more. His funds have a history of underperforming the index. He loves sensationalism but adds little in the way of knowledge or sound advice.

[humbledude]

Well, to begin with, its hard to judge the value of a company that succeeds from multiple acquisition of other companies by using a traditional value model. Therefore, their value is judged by their past performance comparing to their sector.   In the pharma sector, in the case of CXR, the only number I as an investor will look at is their earning and profit.   If CXR puts the

[TheRock07]

WTF does he know ? He advised buying and did buy COS at $27. The meat is already displayed on the table. Health care is still  the best sector to be in and CXR has the most upside

[Red_Deer]

Hey Moron this was well over 100 bucks a few months ago! This is what you call the BEST sector to be in????????!!!!!!!!!!!!!!!!!

[Bullphighter]

easy pal