Player Avatar garifolle (< 20) Submitted: 9/14/2012 3:29:46 PM : Underperform Start Price: $47.49 CTRX Score: +33.80

The very ambiguous way CTRX announced " a nominal dividend on the issued and outstanding common shares of the Company to effect a two-for-one stock split."
Well no it is NOT a dividend, it is yet another stock split, another dilution, that's it that's all.
Not much has changed since I last "downgraded" the previous SXC, which was my highest points earning on My CAP, since I do not play very actively.
I had closed the position because the stock was gaining some strength, due partly to analysts high targets, partly to short covering.
The short float has now diminished to a comfortable 0.95%.
The insiders have only sold more, the higher the price went, and since over a year not one insider has bought (except for one small position a few days ago).

Catamaran was present at the CIBC Institutional Investor Conference (September 13), and I do not know if important upgrades will come out.
But it is surprising that right the day after, the stock start going down.

The year-over-year revenue growth of 115.7% was tremendous: is this sustainable?
SXC was together a growth and a defensive stock, even without a dividend.
Everyone talks about APPL: SXC was certainly the Apple of the techno-pharmaceutical companies.
In the past 5 years, APPL has beaten the Nasdaq by more then 400%... and SXC by more then 600%!
APPL has started to give a dividend, CTRX / SXC has not.

CTRX has more competitors then it used to.
My negative call could be only for a few weeks, and sometime after the split, the stock might make a come back.
But (like Cisco), once a prestigious company is not a fantastic growth stock anymore, it should buy back stock (CTRX makes the opposite, because it does not sits on "tons of cash"), and distribute a dividend, and this will be very difficult.

And finally, but not the least, my concern is about the acquisition of Catalyst Health Solution at a price of $4.14 billions.
I am not sure if this will bring real returns before many, many years: I have calculated approximately 35 years!

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