Concordia Healthcare Corp. T.CXR.R

Buy back or dividend

[grox01]

I would like to see CXR switching the dividend to buying back shares on the market when the p/e is under 7.

I believe their is great value for the company to buyback it's own shares at great discount.

[Hateshorts]

or use it to pay debt

[Lucky27]

The dividend really is useless. I don't think anyone bought CXR for the dividend. Here is to hopefully another good day today. Would be great if we were to be updated by managment today.

[CNInvesting]

It's actually a crime that the company is paying this pointless dividend right now instead of buying back its own shares when they're so cheap. It makes absolutely no sense. 

[WillyWally]

I'd personally focus all available cash on the debt first. Forget about dividends and share buyback.

[wordless]

Their dividend amounts to approx ~$15milUSD per year... Although I don't disagree with you, cutting the dividend now would give shorties more ammo that this is a 'distressed' Company... What they can't afford a messily $15mil dividend anymore? At this point, they should stay the course. No matter how the spin a stop in the dividend, it will likely be viewed as a sign of weakness

[WillyWally]

I personally don't care about short term perception. I do care about financial strenght. The company would be stronger with less debt, shorts can manipulate the stock price but not the balance sheet. 

[CNInvesting]

Yeah I get what you mean and I agree that paying down the debt is top priority. Short-term however, a share buyback, even if it's just $15 million USD/year, could translate into 750,000 shares bought back at the current price (about $20 USD). It's not much, but it would reduce the SO and drive the price up instead of down. Buying back stock on a regular basis could drive shorts away. The

[Lattice]

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[Roller007]

Maybe cohodes can lend Cxr the money to buy back shares.  You know with all the money he is up shorting this "fire dumpster".  Then he can go long for a couple months make more money then go short again.  I mean it's what Andrew left is doing with Vrx, short then long then short again.  You guys are all amazing.  More popcorn anyone. 

[CNInvesting]

Yeah of course, every company that pays a dividend or buys back its shares is a ''potential short'' simply because you look if it's making the best use of the retained earnings or not. If the company isn't reinvesting in its operations, you HAVE to look it up so no disagreement here. That's a rather obvious thing to do though Lattice.

[MikeySwoosh]

@Wordless, absolutely! CXR needn't any more negative impetus, and for those calling for the elimination of the dividend, bear in mind that some institutional investors have a mandate for their positions to pay a dividend, and perhaps so too do some retail investors, such that if Concordia were to relinquish their dividend, electing to save that US$15M/year, it would all but gaurantee a loss to

[TickerTwit]

I've seen a number of companies try share buybacks in response to short pressure; it usually has no effect on share price (which keeps on doing what it was already doing) and it weakens cash flow. My preference for CXR is a tight focus on debt repayment, so (1) keep the dividend minimized at a token amount (to remain eligible for certain investment funds and not trigger institutional selloffs

[Lattice]

This post has been removed in accordance with Community Policy