Concordia Healthcare Corp. T.CXR.R

280 mill annualized cashflow vs $3.5 Billion debt

[drunk@noon]

that is the problem here.. Look at ebitda AND subtract interest expense and that gives you the cash available to pay the debt. This is a debt story EPS has nothing to do with anything in terms of valuation and ebitda means little when it doesn't take into account huge interest expense. EDUCATE yourselves.

[sunshine7]

I would be extremely happy to make 8-10% return on borrowed money. Add to that the 10% growth and reduced ratios going forward? To put in lay terms: Borrow money for a house that is rented and after interest and maintenance pays you 10% with an asset appreciation rate of 4% per year? Why would you not do that?

[wordless]

And as debt is paid down and sales increase from the expected organic drug releases, that cashflow to pay down debt goes up. In 4-5 years that annual cashflow goes up to about $350mil due to less debt and less interest and increased growth... You are then propbably looking at $2bil id debt vs $400-$425mil available. OR an acuqiror that could refinance that high interest debt into low interest

[Roller007]

Drunkmoon:  no problem at all since the debt and high interest is the norm in the generic drug business.  The market put it in the spot light as of late but that's just how all these companies do business, as long as there is no accounting scandals, and the markets reward that model as its a recession proof cash cow.  The debt was at its highest back when Goldman Sachs bought