How much of that is being used to pay off debt ? Those earnings are PE are paper numbers. Right now growth and earnings are in a decline and debt looks heavy.
$10B debt with declining sales and earnings is always a problem.. If it continues it can be a huge problem. Remember stocks get pushed on future potential and pretty much get priced 2 or 3 years ahead.. Same applies when it is in decline mode. It is always bad sentiment surrounding the stock is being compared to Valeant!! If there are no real issues in next couple of quarters this will quickly double. OIL was in worst condition few months ago and it has still has managed to double and so have lot of energy related stocks!
Over the coarse of last year and half, longs were cheering that it nicely hedged for 2016 and 2017 for both LINE and BBEP! They were busy buying more of this #$%$.
Their debt is easily manageable. In fact they can leverage lot more. There are ton of companies with worst leverage and doing very well. You are sentimental trader and inline with market sentiments on this stock rather entire pharma sector.
Where were you before ? Whenever a stock is crashing CH11 becomes new favorite term
Did you short this before earnings ? Do you see high short interest ?
Agree. Dividend is not sustainable that is why it is going down. Same thing was happening with OIL companies the dividends were looking like 15 or 18% and all have been cut to 4 or 5%. They will surely cut dividend to conserve cash. One has to be frugal during down times otherwise it back fires. You will never able to borrow more.
LOL.. I see it on so many boards. Favorite words "this stock is in middle of a storm" , "unjustlry"" hammered ! People keep buying more loser stocks.
Why buy now, do you expect this to magically turn around and go up 20% or something in next few days or even rest of the year! I really don't see it.
$1 or $2 is market volatility!