Concordia International Corp (CXR.TO)

Chart shows a long run up with a sort of spiked top. Thinks these types of companies are overcrowded trades. They are driven by promises with great stories. He would just avoid it unless you are a trader.

Looks very strong. Just completed the acquisition of Covis, which was completed earlier than scheduled, meaning that all of their numbers are bumped up. Also, talking about doing another deal that could be done as early as the 2^nd half, which is only a couple of months away. It would be at least the size of Covis, if not bigger. This really opens up opportunities and expands the company. Thinks there is lots of potential.

A really interesting company in an interesting space. Biotech overall has done very well and there are really some good metrics here. This company is buying the larger scale operations from unloved pharmaceutical companies. He feels it is trying to become like Valeant (VRX-N). Thinks there is growth there. There are a lot of the bigger drug companies that don’t want their lower tier drugs, which are susceptible to generic drugs, and are willing to farm those off in order to concentrate on higher return products. The space as a whole has gone up in value, and is certainly not cheap.

There are a lot of acquisition companies that are doing well. The chart shows the stock has pulled back down to its trend line. It would be positive if we see it bounce off its trend line. The resistance point will be its high that it reached in mid April at around $107. If the whole market turns down, companies that are on the acquisition path are going to turn down a lot. Because we have been in this bull market since 2009, we really haven’t seen that. You have to watch this.

This is back to about its issue price of $85. Trading at about 13 or 14 times EBITDA. Before its acquisition, it was trading at 18 times because of a lot of anticipation. This is a growth by acquisition story. If they make another acquisition, he thinks you could see $110-$115 a year out. He would be a buyer in the low $80s.

This is growth by acquisition. He looked at this, but it was a little too small. Chart shows a gradual upward pitch from last May. Then there were some fundamentals that pushed it higher from December on. It is right on the trend line. It is pretty volatile. The technical target changed a couple days ago and is around $65 now. It is not interesting to him at this time.

Chart shows a straight line going higher from November on. The 20, 50 and 200 day moving averages are moving higher. Has been overbought over the past couple of weeks and it is starting to show signs of curling lower. There could be a pullback here. For an entry point, he would be looking more towards the 50 day moving average.

Chart shows a long upward trend from 2012. When you are in an investment like this on a technical basis, stick with it. Seasonality picks up in the summer time. There are a series of healthcare conferences which helps the sector.

A healthcare company that has been very acquisitive. Recently pulled off a very large acquisition which significantly grew the size of the business. Healthcare and pharmaceuticals that are able to make acquisitions is a hot space right now. A very tough company to bet against.

(A Top Pick April 23/14. Up 283.05%.) He still really likes this. It meets all the criteria of having acquisition growth and organic growth. CEO has stated that they could be looking at larger acquisitions than what they have just done, as well as acquisitions in Europe. Thinks there is lots of growth left.

If you believe in the story, then fine. He thinks it is a risky play. Be very careful. The easy money has been made. He prefers an ETF that focuses on the whole sector.

It is now at the level where they did a huge acquisition of drug portfolios. They had to do a big debt and equity issue. Prefers MSL-T.

He has held it for a long time. He is contemplating adding to it again. It is a Valiant want-to-be. It will have to get into bigger acquisitions.

Recently made a huge acquisition which would grow their business by 50%. They are going to have to do an issue to pay for part of it. It has done what it is going to do in the very short term. He would do it on the issue if it was going to be $78-$80, which would be a better entry point.

(A Top Pick March 6/14. Up 512.24%.) Bought this on the initial public offering and felt the stock should be somewhere in the $15 range. Immediately after that, they did some transactions and the stock kept going up. Excellent management.