Concordia Healthcare Corp. T.CXR.R

What's it going to take?

[ayowood]

The pound is up 2 cents, the market has been on a monster rally and this stock just knows how to nose dive daily... I'm long on this but everyday I get closer and closer to moving on from this stock

[YourMindIz]

This post has been removed in accordance with Community Policy

[Rookie89]

same here, getting really frustrated but I think it has something to do with all the call options expiring on July 16.  Just look at the cxr call options 

[MirrorWorldMan]

On the surface it looks like somebody is losing cash on the july $15 and $20 CXRX US puts.  But judging on the size of the interest on both sides, I reason its just maybe a small hedgie doing naked shorting.  Mistake IMHO.

[wordless]

It's going to take a few more quarters of solid earnings.  This will take the overhang off the stock once it proves it can make money and service it's debt.  The current CXR is still in its infancy and hasn't proved anything yet.  This is a "show me" stock...  And if it can show the market, it disproves the short thesis and we can move up.

[sunshine7]

wordless says: " And if it can show the market, it disproves the short thesis and we can move up." Can you remind us again what the short thesis is?

[wordless]

Short Thesis from what I can make of it (just some main points). 1) MT doesn't know how to run a Company.  He was involved with previous pharma companies as their 'general counsel' but the Company was a 'fraud' (this one makes no sense to me, but Cohdes has been saying this or something along those lines). 2) Company has too much debt and can't service it's debt.

[sunshine7]

Thanks Wordless for the prompt reply. I suppose we could have a discussion on any of these points so let me pick a couple. Donnatal: CXR doubled the Donnatal sales force and stated that it will take a couple of quarters for the full impact to be realized. Now no one with an expectation of lower sales would invest in 75 or 100 additional sales personnel and expect to lose sales. Considering their

[puma1]

in the simplest terms the shorts do not believe guidance for this stock or most of the other generics. They play on all those other issues to add bulk......... If the cash projections given to the bankers for all these deals were cooked, the short hedge funds will do like bandits as they did on the cooked CDO's. AMCO had a decent track record, at least based on comments by RBC & Scotia'

[MikeySwoosh]

Just hypothesizing, but the current price action could be a function of the Nasdaq listing, where CXRX is trading near the 20 strike price, which expires tomorrow! It's not significant option interest, but nevertheless, it might be enough to cause gravitation toward that strike. Hopefully next week will prove to be a more constructive week! GLTA