Q: Yesterday,shortly before the market close,a reporter on BNN when commenting on Concordia's share issue stated "clearly this issue will have to be repriced" or words very close to this quote.My question is:Do you consider the above quote to be appropriate considering the attack to which this stock has been subjected?I can understand an analyst or a money manager making such a statement but for a BNN reporter it seems to me to be irresponsible.The statement seemed to have no effect on the stock price but not long after CXR reported that the issue was completed and the money was"in the bank".Publish at your discretion.I thank you for your continued guidance and advice. Don.
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: A little perspective for all the Concordia owners: Since Sept 21, when they admitted they basically committed massive fraud, VW is down about 36 percent. In that same time, Concordia is down 50 percent. The market isn't always rational, or even sane.
Q: Andrew McCreath on BNN this morning had some very negative comments on CXR's debt in relation to being forced to reprice its drugs. How do you view this potential problem?
Q: Based on today's market trading of Concordia shares versus Valeant, ie Valeant shares are recovering somewhat today while Concordia is maintaining its downward spiral, you have to wonder if the market thinks that the share sale will not be finalized tomorrow or that the terms of the sale could be renegotiated. What is the probability of this happening, and if so, what happens next? A second related question has to do with the EPS for Concordia assuming that the deal is finalized. I have read a research report that has EPS around $8.50 next year. Do you concur?
Q: Not a question but two comments. Thursday CXR announced a bought deal at $65, a discount OF 10% - and the issue was oversubscribed.
And now it is not just Hilary: Democrats in the U.S. House asked to subpoena the company (VRX) for documents relating to drug price increases, the latest move by politicians seeking to curb price hikes on acquired drugs.
Concordia Healthcare Corp.’s public share sale is done and dusted.
And now it is not just Hilary: Democrats in the U.S. House asked to subpoena the company (VRX) for documents relating to drug price increases, the latest move by politicians seeking to curb price hikes on acquired drugs.
Concordia Healthcare Corp.’s public share sale is done and dusted.
Q: Hi Peter, Not sure what is going on? It is down 25% now for today? Reading your commentary does not look it is a bad buy at this point. I own 50% at $88 and rest at $65. Not sure if I step in and by some more now(for 5 years hold)? What is its next year PE with this price point? Also do you think financing and the merger both are 'done deal'? Can you please also do a little fundamental analysis on this for us?
Q: Michael Hainsworth made an allusion this afternoon on BNN's Market Call that Concordia will be meeting with potential lenders on October 1, in NY. I can't seem to find anything on this item, including CXR's own website. How does this figure into the greater scheme of things at CXR?
Is your advice, overall, to "hold" on this stock? I was in at $49, with a full position, so the stock is still "up" for me, at this point .... but who knows for how long?
Thanks for your help.
Is your advice, overall, to "hold" on this stock? I was in at $49, with a full position, so the stock is still "up" for me, at this point .... but who knows for how long?
Thanks for your help.
Q: Hi Peter,
Can you confirm whether or not CXR was able to complete the stock offering at $65 before things fell apart? If not, is the financing at risk given market conditions? Would this limit CXR's ability to close on the acquisition?
Mike
Can you confirm whether or not CXR was able to complete the stock offering at $65 before things fell apart? If not, is the financing at risk given market conditions? Would this limit CXR's ability to close on the acquisition?
Mike
Q: Do you have any idea who could be selling 4.7 million CXR shares today in the US market? Given an average daily trading volume of 10k shares, this looks much beyond a response to biotech/pharma weakness. According to the Sept 8 press release, it looks like Cinven would have a lock-up on their 8.5M shares. Is it possible the underwriters were selling today just to exit their position on the new offering? Thanks.
Q: As I write, CXR is down over 11% on the day, and has lost more than a third of its value in less than one month. It is starting to remind me of PHM, which lost investor confidence and then more than two thirds of its value (so far). Are big investors bailing on Concordia or is it just the small investor reacting to downward momentum? It seems dumb to sell here but if this momentum continues it will be a forty dollar stock in a few weeks.
Q: Now getting absolutely shellacked - below $77. I know you've answered questions about this one today, but do you have any rational for this horrible action. No doubt the deal was not placed well notwithstanding the talk of it being over subscribed. What a joke!
Q: I have to admit that I am truly puzzled be the way the shares have dropped today to around $11 below the new share issue price. I was expecting that the shares night trade around the issue price of about $86 Canadian or slightly below. But $11 seems very excessive. What am I missing? And what does the market know that we don't? At the very least I would have expected the underwriters to maintain the share price close to the issue price in order to successfully market the shares. Where do you see the shares going from here?
Q: What do you think of CXR at this level. What would you suggest as a good entry point. By my math it's now trading around 12 times 2016 earnings? Thx Scott
Q: Hi Peter and associates, Considering the market downturn I am planning to deploy 25% of my portfolio(which is in cash) during next month. Can you please give me your top 3 Canadian(does CXR qualify?) and top 2 US name(does PCLN qualify?) considering a 10 year hold? I own all the stocks from your growth portfolio and can tolerate high investment risk.
Q: Hi Peter & Team,
The current ongoing acquisition that Concordia is doing is suppose to be 35% accretive to earnings in the first year. I assume that number is being calculated after the new debt and dilution of shares (with the equity raise), cash payouts and senergies are all factured in?
What is CXR's adjusted EPS range, total revenue, total debt, cash position before and after the acquisition?
Do you have an idea historically how much lower an equity raise price for a stock like this would be compared to current price (percentage wise)? I assume this will be done fairly quickly in the next few weeks?
Thank you, Shane
The current ongoing acquisition that Concordia is doing is suppose to be 35% accretive to earnings in the first year. I assume that number is being calculated after the new debt and dilution of shares (with the equity raise), cash payouts and senergies are all factured in?
What is CXR's adjusted EPS range, total revenue, total debt, cash position before and after the acquisition?
Do you have an idea historically how much lower an equity raise price for a stock like this would be compared to current price (percentage wise)? I assume this will be done fairly quickly in the next few weeks?
Thank you, Shane
Q: In your opinion, is there more upside potential in purchasing Concordia over Valeant at today's prices?
Thanks in advance
Thanks in advance
Q: From Report on Business, Sept.10 - "Concordia Healthcare Corp. is planning a
major equity raise to help pay for its latest acquisition – but instead
of relying on Canadian investors, it will seek out the funds it needs in
the U.S.“We will not be doing a
Canadian bought deal. We are doing a U.S. institutional raise,” said
chief executive officer Mark Thompson in an e-mail."
This would appear to validate the 5i observation that Tuesday's selloff from the open was caused by institutions looking to replace their holdings with the cheaper new issue shares and that for the individual long term holder the wobble in the share price shouldn't matter a year from now, particularly with street analysts bumping their target prices by 15-20%.
I believe this company has most of its revenue internationally sourced and since it is likely Canadian based only for tax reasons, what would the long term picture look like for CXR and VRX should we elect a federal government determined to raise corporate taxes? Thanks, J.
major equity raise to help pay for its latest acquisition – but instead
of relying on Canadian investors, it will seek out the funds it needs in
the U.S.“We will not be doing a
Canadian bought deal. We are doing a U.S. institutional raise,” said
chief executive officer Mark Thompson in an e-mail."
This would appear to validate the 5i observation that Tuesday's selloff from the open was caused by institutions looking to replace their holdings with the cheaper new issue shares and that for the individual long term holder the wobble in the share price shouldn't matter a year from now, particularly with street analysts bumping their target prices by 15-20%.
I believe this company has most of its revenue internationally sourced and since it is likely Canadian based only for tax reasons, what would the long term picture look like for CXR and VRX should we elect a federal government determined to raise corporate taxes? Thanks, J.
Q: Hi, I don't understand how this new share issue will work for Concordia. How does a retail investor buy them and at what price?
Thanks,
Carla
Thanks,
Carla
Q: Sometime ago I purchased ZUH-T to gain exposure to Health Care...and it is a hedge EFT. I would like to replace this position with an unhedged ETF or a Cdn/US dollar position. Other positions added since then in this sector are IBB (1.5 position weight), GILD and SKY (both 1 position weight), and GUD, PHM and PLI (0.5 position weights). Looking forward to your suggestions....Tom
Q: Hi 5i Team,
Another question about CXR. What are your overall thoughts of the company after the latest deal? It seems like the company is trying to duplicate what Valeant has done with aggressive growth through acquisition. Do you believe in the management team enough to be able to execute this strategy? And with regards to the share issue, when will the price of the issue be decided? Do you see it as a buy today, or would you wait until the issue?
Thanks,
Jordan
Another question about CXR. What are your overall thoughts of the company after the latest deal? It seems like the company is trying to duplicate what Valeant has done with aggressive growth through acquisition. Do you believe in the management team enough to be able to execute this strategy? And with regards to the share issue, when will the price of the issue be decided? Do you see it as a buy today, or would you wait until the issue?
Thanks,
Jordan