skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Regarding Maida's post on CINVEN buying 7.2M shares today. Is that news accurate. I've been trying to find any news on internet (incl. their webpage) to no avail. Someone at stockhouse.com says news came from Reuters (couldn't find anything). Have you guys verified this? If so, maybe you can provide the link.
Thank you!
Read Answer Asked by Silvia on October 21, 2015
Q: I am not a holder of Valeant Pharma, but I do have a small position in Concordia. While one could argue that Valeant had appreciated quite spectacularly after its failed bid for Allergan and was perhaps due for a pullback that recent market behavior seems irrational! It seems that retail investors don't really have a chance in today's markets with HFT and powerful short sellers. Many retail investors will get scared out of these stocks and others when huge declines occur even if they bounce back in 3 weeks or 3 months as evidenced by what happened on that Monday in August. Is there something the market watchers can do to restore some semblance of fair play in the stocks markets?
Read Answer Asked by Jason on October 21, 2015
Q: Hi,

Why is it that when these stocks drop, CXR, the one not being targeted by subpoena, seems to drop twice as much as VRX? For example, last Monday CXR dropped 20 % whereas VRX dropped ten?
Today, when news came out of allegations of VRX's, CXR dropped just as badly? From its peak, VRX, has dropped about 56%, whereas CXR has dropped 82%!! I can see why people are selling VRX but why is CXR being punished worse?
Read Answer Asked by Graeme on October 21, 2015
Q: Hi
At 11:59 today there was an announcement from cinven

Cinven announces acquisition of 7,233,338 common shares of Concordia Healthcare Corp.
21 Oct 2015 11:59 ET Please comment. Thankyou
Read Answer Asked by maida on October 21, 2015
Q: Hi Peter,
Sorry for another question on the same companies. Jason Donville recently recommended Valeant and Concordia and Bill Ackman owns a fair amount of Valeant shares. These folks are very smart people. I understand that the shorts are effectively ruling the show right now as the same thing happened to Nobilius Health. The stocks are not reoovering. One would think that if the fundamentals are there, the stocks would have a bit of comeback. What is missing here please given your experience?
Read Answer Asked by umedali on October 21, 2015
Q: My apologies for adding to the barrage of questions on Concordia -- I promise to sit on my hands on any further questions until the end of the year. Pinky swear : )

Now, what validity should be attached to the Citron Research report? Is it factual? Is it accurate? Is it truthful -- three very distinct entities, from a legal perspective.

More importantly, what's Citron's vested interest in all this?

From my understanding, the prime researcher on this is a renowned short-seller, so is this report as obvious a ploy as it looks?

Being naive? Or conspiratorial?

I'm just not sure what to believe anymore. I'm holding on to my shares for now, in this gale-force wind, because 5 I reiterates that there is value in the stock and that the fundamentals will speak for themselves, if we can hang on through all this noise.

Thanks for your advice, as always.

Read Answer Asked by Sylvia on October 21, 2015
Q: Do you think that the fundamental profit drivers of Concordia have changed? CXR has borrowed lots of money to make acquisitions based on the assumption that they can increase drug prices. The CEO of Valiant seems to be suggesting this pricing power might be gone. Since CXR is a highly leveraged play, maybe the fundamental are not nearly as good in this new drug pricing environment?
Read Answer Asked by Kent on October 21, 2015
Q: Hi Peter and Associates, CXR is going down again today significantly. They released a press regarding their debt financiang. What is your take on that? Really I don't get it, Jason Donnville recommended this yesterday @BNN and still its keep getting hammered. Is there any real risk of not closing this deal? Is there something we don't know. Also say they close this deal and they don't do any deals for next 3 years, would they be debt free? How do you compare their debt with other similar companies like AGN/VRX? Also if someone has a fresh dollar today , which one would you suggest VRX or CXR?
Read Answer Asked by Sridip on October 21, 2015
Q: Hi Peter and Team,
When Jason Donille was on BNN's Market Call a day or two ago, he commented that as a result of the recent plunge in its share price to $40, CXR's PE ratio has now dropped to 4x. But according RBC's web site, at today's closing price of $35.33, CXR has a PE ratio of 52.2x. Would you please comment on this huge discrepancy between the 2 PE ratios as quoted on BNN and RBC's web site, respectively.

Regards,

H.S.
Read Answer Asked by Harry on October 21, 2015
Q: Latest update from CXR:

http://www.newswire.ca/news-releases/concordia-provides-update-on-term-loan-financing-and-reconfirms-blended-interest-rate-of-approximately-725-post-amco-acquisition-534766791.html

The loans in connection to the financing of AMCo have been fully allocated and CXR has reaffirmed the 7.25% blended interest rate.
Read Answer Asked by Arneh on October 20, 2015
Q: A follow-up regarding the senior notes announced today at 9.5%.

Per http://concordiarx.com/concordia-provides-update-on-amco-financing-and-capital-structure-post-amco-acquisition/ , the maximum blended interest rate (including the new $790m of senior notes) is 7.25%. Therefore, if I'm understanding correctly, the senior notes announced today aren't priced any higher than CXR was expecting them to be on Oct. 15.
Read Answer Asked by Arneh on October 20, 2015
Q: Hello Team,
there have been more than enough inquiries about this company, here is another. Today, a 'Marketwatch' article indicated that the company has now determined the issue of unsecured senior notes of US$790m at 9.5%. There appears to be a negativity about the company and its difficulties in financing the acquisition. Would you be able to find out with respect to short sellers whether the stock suffers from serious manipulation? And if so, why is there no news from the company?
Communication should be key!
Thanks
Read Answer Asked by Sigrid on October 20, 2015
Q: What's your take on the recent press release by Concordia regarding the offering of senior notes?

http://concordiarx.com/concordia-healthcare-announces-pricing-of-offering-of-senior-notes/

CXR seems to be conducting business as usual, getting deals done and closing the AMCo acquisition. The continued hammering of the share price is baffling.
Read Answer Asked by Arneh on October 20, 2015
Q: CXR hit $35. I have two questions. First, Jason Donville said that he called brokers and was told that a lot of the shares were owned on margin. Can we trust it is true and can we verify this using a bloomberg terminal or website? If not, it seems like a good way for a portfolio manager like him to encourage us to buy the "bag holders". Secondly, there is news today about Concordia offering "senior notes". Is there something not to like there? I don't know what "senior notes" are. Thank you!
Read Answer Asked by Matt on October 20, 2015
Q: Is CXR a compelling buy yet or stay away? I have been holding off adding to have a full weighting in my position. The financing terms were obviously unfavorable based on the plunge today but at least it's done. My cost is substantially higher. what are your thoughts?

Thank you
Read Answer Asked by Douglas on October 20, 2015
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!