Investment Q&A

Q: Thank you for providing the link to short interests. Correct me if I m wrong but I saw an increase of 6.9 million shares to 9.8 for Concordia. Looks like a lot of people still think it will not sustain the present share price.

Q: How does the short selling look for CXR? I understand these numbers were released today?

P.S. Where would I find this info?

Q: I was just looking at the fundamentals provided by my on-line service CIBC Investors Edge for this company: when I look at EPS last 4 Qt it shows just over $5.00; yet, on a TTM EPS basis it shows -300%+ growth, debt to equity over 3X and negative ROE. How can you make $5.00 per share and have negative ROE: especially, when they have been making money and on a cash basis generating a ton of cash? What am I missing and is this a good stock to hold for a recovery??

Q: Do you think it's a good time to start adding back into CXR? I am a little concerned that the recent improvement might be due solely to short covering. Your advice would be appreciated.

Q: When will data be released regarding the short selling with cxr.

Thank you

Q: could you please explain how to read this information on CXR:
http://shortsqueeze.com/shortinterest/stock/CXRX.htm

I do understand the terms but what conclusions can one take from this if any? I am long on this stock.

Q: With the nice rise in the stock in the last few days, begs the question "Is it sustainable? Do you still see upside from here?
Thanks for all you do.
Guy R.

Q: Wanted to add something to Bryan's question about Concordia, relating to Cohodes.

1- Cohodes shorted OpenText during the financial crisis. The stock instead went up and shortly after, he was forced to close his hedge fund. OTC is up 410% since his short.
2- Cohodes is known for liking "a fight". He likes shorting because of the confrontation aspect.
3- Cohodes often has little facts, but succeeds at making retail investors second-guess themselves, at instilling doubt.
4- If you watch his appearances on BNN, you're likely helping his cause, because BNN will see a higher viewership and bring him back on.
5- Best to not comment about Cohodes' points of view, on any social media (stocktwits, stockhouse, twitter). That only makes him more popular.

Q: Do you think they can pay off meaningful amounts of debt this year and on? I'm pretty sure we all know now they can cover interest, but people are claiming this is a "debt story". It's highly leveraged but is it only a debt story when default is a concern? Also, what is with this Cohodes short seller? Why is he so crazy for Mark Thompson? Now he's saying they are channel stuffing in one of their drugs in his ranting tweets, and that their balance sheet is "on fire". Your comments on that too possibly? ( you can take off like 4-5 "question credits since I ask like five here )

Q: I sure am glad I bought back into CXR a couple days ago. I actually thought that the earnings results today were not good as the Eps was a miss.
Your thoughts are appreciated as usual.

Q: Can you please comment on earnings and guidance. Does this look in line and on track.

Thanks

Q: I checked my Scotia itrade account after reading your answer regarding Canadian companies paying $US dividends. My account states states that MG, OTC, CSU, CXR and BEP.UN are all paying Dividends in $US and then converting it into $CA. I am going to assume that they are charging me for that conversion each time which goes against my strategy to pay as little as possible in fees. What is my best solution to this problem. I do have a US trading account with BMO investorline. Would it be best to buy these stocks in $US to eliminate conversion fees. Any other insights or solutions would be appreciated. Thank you.

Q: Hi 5i,

In the last proxy & general meeting shareholders were to vote on a "blank cheque" policy for preferred shares I believe. I did not see results for the vote of this. Do you know what happened?

Would preferred shares dilute the value of the current common shares?
Are they for private investors or to be listed on the stock exchange?
Do you think this is a form of a "backup" or added plan to deleverage the company faster?
Would someone like BlackRock be interested in this type of investment as opposed to buying the whole company?

Thank you, Shane

Q: What is the consensus for CXR's upcoming earnings? At $30, does the risk/reward present a time to double down?

Thanks,

Wes

Q: As a follow up to my previous question regarding Concordia's share price drop you mentioned that the drop Friday was likely due to the forecast and results from Endo Pharma (ENDP. Based on your understanding of the two companies how susceptible is Concordia to the same factors and pricing that brought down ENDP? And to what extent does their acquisition and European operations buffer Condordia from tabling similar results? Thx.

Q: Hello,

I've been reading a lot about the CXR takeout possibility. There are a lot of opinions out there but inevitably because this was not a rumour, I'm looking at it more closely as a real possibility and that CXR is in play. Regardless of all the moving parts to CXR, the short players, bad press, debt, etc., and that even without a bid to buy, CXR stands to be worth much more in the future if they can start to pay down debt based on their earnings and reporting this Friday. My question is that it looks like CXR isn't getting an offer they would like to accept and the market seems to be reacting as if there is no belief that a buyout is around the corner. Why wouldn't a viable company just make a hostile bid and get the ball rolling anyway? Could you please provide your insight on this CXR situation and on how this buyout could work here considering CXR is looking?

Thanks for your answer.

Q: Concordia's share price has been sliding steadily recently which I find surprising given that the company is in play ( I assume)based on any public information that we have access to. Also with the earnings report expected in a week I would assume that the company will have paid down some of its debt. Both events I thought would be positive for the shares. So why are the shares dropping as much as they have especially if Concordia has formed a committee to evaluate possible buyers? The market is acting as if that possibility has been ruled out yet there has not been any announcements to that effect. So how does one rationalize current share performance with a possible buyout that typically would stabilize share prices? Or does the market/insiders know something that we do not know? Your thoughts please. Thx.

Q: Good morning Peter,
unless I am missing something, I was under the impression that Concordia were scheduled to release their 1st Qtr results this morning, yet I can`t find any news towards this anywhere. Can you enlighten me on this? Thank you.
Rick

Q: Good morning,

Regarding Concordia Healthcare, it seems to be a darling among analysts on BNN as one of three top pics with increasing frequency. Assuming that these fund managers are adding to positions and assuming that there is a consensus both that the stock is cheap and that a takeover is likely, what do we take away from the continually falling price?
It would seem that the company is a buy based on valuation and if not for that reason, then the potential for a premium to be paid during acquisition. Three parts to this question:
1. Do you see it drifting lower until concrete news about a buyout (or not) emerges?
2. What do you see it as being worth if acquired?
3. If the revenue is growing and the debt levels are high but cash flows allow it to be paid down, is there something else causing the price to remain compressed?

Thanks

Q: Hi folks,
I took a small position in Prometic Life Sciences when it was at $2.70. It's gone up quite a bit since then and I've been waiting for an opportunity to buy more. Considering doing that this week but am now looking at Concordia given the big drop today (I was considering before the possible buyout news but thought I'd missed my opportunity). Any information on the 9% drop today in CXR? Thoughts on taking a half position in each this week? I have no other pharma/medical positions so my exposure to the sector is limited and the positions would be relatively small. Thanks.