Concordia Healthcare Corp. T.CXR.R

$CXRX

[curiousbuild]

a hit $US 33.94 on Monday can very well hit again on little smart short covering.. CB

[CookieMonster]

There is still zero premium in the stock for a potential buy-out! 

[sunshine7]

Do the math cookie. Use guidance earnings and calculate ROI for a PE buy out. I did and came up with USD65 for a 10% roi in the current year. Next year with debt pay down, organic growth plus a few tuck ins and the price just got higher. A few posts ago you were bragging you could add?

[CookieMonster]

I get around a 8 to 9% return assuming interest rates on debt stays the same.  That is @ $65 U.S. Currently, CXR should generate $350 mln. Free cash flow and the market cap is $1.65 Bln. 

[CookieMonster]

I do think $60 or $65 U.S. Is the right number.  That equates to 10.5 to 11x ebitda.  

[Roller007]

Cookie Monster:  at that price it would have been gone few months back. It's bought but at a lower price. Most likely MT settled somewhere in the mid fifties. 

[CookieMonster]

Let's just call it $60 U.S.  10% cash on cash return for private equity in the first year.  And the return grows from there.

[CookieMonster]

A Monday update press release would be just perfect.  I don't worry too much about the shorts, but I would want to be short going into the weekend!

[sunshine7]

I assume you mean NOT want to be short before WE. LOL

[CookieMonster]

You are correct.  Me bad.