Valeant tumbles as Grant/Chanos take aim
04:57 PM ET · VRX
Citing Jim Chanos as the source of the idea, Jim Grant says he's "confidently bearish" on high-flyer and hedge fund favorite Valeant Pharma (VRX -4.5%) and its strategy of growth by M&A. The bull case, says Grant, boils down to "good things to happen" to the companies Valeant buys, but "we don't see the data to support that contention."
Among other things, Grant notes just 2.7% of sales is spent on R&D vs. 13.8% for the industry as a whole.
Chanos is old news. He's been getting his #$%$ shot of with HWP and CAT. He pays journalists to write negative articles and feeds off the carc#$%$. He was wrong on the Australian dollar and he's been bleeding on wrong way bets in China. Eventually, China will pay off if he's got any followers left. If you're investing by what others say about your stock, anyone, you're going to get hit hard. The only person on the planet I might follow into a dark tunnel would be Buffett.
Are there any original thoughts of your own on this? If your going to quote an article, post the entire article. We can all plagiarize articles and make it read how we want it to. What did the end of the article say........?
Chanos got his but whipped on his last two shorts....just like avkman,,makes his short public ,he gets the weak to sell and then it goes up up up ...happened many times and will happen with vrx.....hide and watch