after perusing vrx's financial statements over the last few years, I notice that the tangible shareholder equity has gone from -$15B to -$35B, even though vrx has claimed non-gaap profit of $9.8B. Additionally, for the last Q, vrx reported a non-gaap profit of $1.27/sh but a gaap loss of $1.07/sh. So conceivably, it's entirely possible that for the full year, vrx can meet its non-gaap projection of $7/sh profit while actually lose $5/sh in gaap terms. No wonder some analysts are giving $11 or $18 price targets for vrx.
VRX will report earnings and future projections in a matter of days. The lackluster performance of the price action in spite of positive news reports (ie. Andrew Left, buyout rumor) indicate that big boys in the know are anticipating a drop. You'll have plenty of time to pick up VRX shares at much cheaper prices.
Valeant takeover rejection report 'difficult to fathom,' says Piper Jaffray. Piper Jaffray analyst David Amsellem noted the report claiming that Valeant (VRX) previously rejected a takeover offer from Takeda (TKPYY) and TPG prior to appointing Joe Papa as CEO, but said he finds it "difficult to fathom" why a buyer would have interest in the entire asset portfolio, since he believes the value of its segments to be "meaningfully" below the company's $31B in total debt outstanding. Amsellem, who thinks there would be significant strategic interest in Valeant's gastroenterology assets, believes that any strategic activity will come in the form of asset sales or a breakup of the company. The firm keeps an Underweight rating on Valeant shares. Read more at: http://thefly.com/landingPageNews.php?id=2381435
Wells Fargo analyst David Maris, in a research note titled "Odd Timing for Months Old News That Doesn't Matter," expresses skepticism over the Wall Street Journal's report last night that Valeant Pharmaceuticals (VRX) received and rejected a takeover approach from Takeda and TPG in the spring and that there are currently no talks ongoing.