Concordia Healthcare Corp. T.CXR.R

Lets look at it this way

[fdfd12]

If they miss the consensus of $1.49 by let's say $1.30.

And also let's say they do, instead of $6.50US, end up at $5.00US.

The PE is still 3!!!.

As long as they can pay of their debt, this is ONCE in a lifetime opportunity.

DEBT is the key.

[CookieMonster]

Debt and deleveraging is key.  If they can improve the balance sheet, should be trading at 9-10x ev/ebitda vs 7x now.  Each 1x multiple = $11 per share U.S.

[HamSandwich]

Debt repayment is correlated with profitability

[select1011]

This post has been removed in accordance with Community Policy

[wallop13]

I think they're going to sell the company. It's probably been a matter of price. This company is better off private at this point. It will probably go private at 9X EBITDA. MT probably wanted 11X, but he'll probably throw in the towel pretty soon with the price action we've been seeing.

[Lucky27]

9 times translates to what share price??

[CookieMonster]

9x your ebitda forecast.  Subtract $3.2 Bln. In debt.  Divide by 52.4 mln. Shares o/s fully diluted.

[wallop13]

It's about $47CAD a share..... That's a little higher then I was thinking. 8.5x is probably closer. That's just under $40 CAD.

[puma1]

that is the Scotia number  - $1.30 and RBC is $1.26 Scotia also show net debt dropping from $ 3.365 Billion to $ 3.04 Billion the end of next year.

[wordless]

They are probably at $3.04bil or close to it already at June 30 simply due to the unrealized translation gain on the GBP debt for USD reporting purposes.

[puma1]

good point - i don't think they factored it in as there is no market adjustment line in their projected 2016 or 2017 income statements.

[puma1]

i went back to the Q1 statement and double checked the currency on the GBP debt. at the end of Q1 they had $475 million of GBP debt in the GBP currency. the FX rate at the end of March was about 1.43  - so in $US they disclosed $US 685 m  - whereas at the end of Q2, June 30th, the FX was 1.34. that change alone reduces the outstanding debt by $US 45 million    

[cavinsin]

Puma $ 1.43 is correct, not like some idiot..s here talking about $ 1.52