Concordia Healthcare Corp. T.CXR.R

Prefered shares.

[Roller007]

This must be the reason of the latest four day slide. MT is attempting to raise money through a prefered share issuance most likely to finance an aquasition and the market is expressing their dislike.  The irony is that this action last year would have spiked the share price.  There seems to be a major shift in the views regarding how this business model is rewarded.

[sunshine7]

mere speculation on your part. The primary reason to allow the board to issue preferred shares (they have not stated that they will be issued is unneeded) is to prevent a hostile takeover. You looking for a lower share price?

[Roller007]

Sunshine:  my comments was based on a little research I did regarding the matter, and yes it also serves as a protection from a hostile takeover.  As to me me buying more shares, that is a negative since my position is large enough. 

[Lattice]

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[Roller007]

Lattice:  let's say that you are correct, the fact of the matter is that the market is punishing the SP since this resolution will block any take over attempt ( ie quick spike in the share price).  It makes sense that many investors don't want to ride this out and we're hoping for a buyout, I guess the boys at cannacord fit this bill.   To be frank, I started

[Lattice]

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[Stockcoach1]

You are completely wrong. The PF shares are non voting, non diluting to the float and have nothing to do with blocking any takeover bid. PF are not a poison pill.  They are simply a financial instrument, similar to bonds, where for example CXR could issue $1B worth of PShares paying 4-5% and use that cash to pay off $1B debt that is costing them 9%. This could save them piles of dollars. If

[Lattice]

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[sal_bando]

Actually, a rate of 4.5% would be considered quite good. This is from Globe and Mail. Mind you the article is talking about rate reset preferred's but that is only one option available to the company. The article focuses on why the preferred's might be attractive to investors: "Arguably, yields on these shares will still be attractive on a comparative basis after the reset. Those

[Lattice]

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[sal_bando]

Fortis was just one example given in the article. Generally speaking, you will not find preferred's in this environment going at a much higher rate. I think the company can still save money going this route.

[sal_bando]

Preferred's are listed in the equity section of the balance sheet and are not considered to be debt. You can't have it both ways. They are either diluting or they are piling on debt. You can't say that they are doing both by issuing preferrred's.

[Lattice]

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[Scruggstyle]

I tend to think of pref shares as debt (in a good way) in that they generally do not participate in the growth of the company, as do common shares.  Rather, they are usually only entitled to a fixed return on investment by means of a special dividend per share.  Unlike debt; however, the shareholders usually have little or no control over the timing of the realization of their investment

[Lattice]

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[Lesalpes29]

Thank you. Nice information that you are sharing here. Time to continue to follow the board and grab those cheap shares!

[wildthings]

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