Concordia International Corp (NASDAQ: CXRX)
Concordia International is having a relatively strong start in the market today. Since the opening bell, the stock has been well into the green. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching with regard to CXRX ahead.
What We’re Seeing From CXRX
As mentioned above, Concordia International is having a relatively strong start to today’s trading session. Since the opening bell, the stock has been well into the green and it doesn’t seem to be giving up gains any time soon. At the moment (10:00), CXRX is trading at $2.67 per share after a gain of $0.21 per share or 8.43% thus far today.
Why The Stock Is Headed Up
As usual, as soon as we noticed the gains on CXRX, the CNA Finance team started to dig to see if we could uncover the reason for the movement. In this particular case, it didn’t take long at all. The reason for the gains has to do with an investors pushing for restructuring.
Earlier this morning, it was announced that one of the larger Concordia International bondholders has made a key threat. Apparently, he has pushed the company for financial restructuring and is now threatening a lawsuit if something isn’t done.
The reason this is positive is relatively simple. Often times, companies need a little push from activist investors in order to do the right thing. In this particular case, CXRX is getting a push for something it definitely needs… financial restructuring. At the end of the day, companies often listen to their shareholders, so this could be a sign of something positive to come.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on CXRX. Of course, we’ll be watching for the company’s response to the news. If they respond by restructuring, we could see more big gains to come.
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