Dilution is 25%. Is this minimal. And the dilution is at a lower price. This is a down round financing.
What is going to happen when the shyster lawyers win their class action suit? Another "minimal" dilution round?
Viewers tune into CNBC to hear opinions about stocks. SUNE's implosion this year had nothing to do with CNBC or any other pundit forum. They suck; what more can I say?
Congress announced an inquiry into the VRX-Philidor relationship. Three employees of VRX will be deposed to uncover who knew what and when.
Traditional fundamental valuations do say FOSL is a buy. But more is going on here. As an analogy, why is KORS selling for half the P/E as COH? Both are in luxury hand bags. I think for FOSL, the growth rate is negative and the market factors this in.
Sorry longs, FOSL is in the penalty box for multiple majors. AAPL is taking market share away with its so-so iWatch. FIT has the health conscious market. I think MisFit is a desperation play; they are too far behind FIT.
At some point, FOSL will find its center and motor on. Maybe lower than $30 ps. Cash flow can be used to buy more shares but not going to happen with the MisFit deal.
And as Captain Obvious would say, FOSL is in play for year end tax selling.
Doesn't matter to VRX. The altering was done by Philidor, a separate company from VRX.
Don't tell me that Philidor and VRX are one in the same. VRX only had an option to buy.
PCLN has risen strongly (+$250) in recent weeks. All seasoned investors know that they always give tepid guidance. Today's drop was telegraphed and all savvy traders should have seen it coming.
I sold a naked weekly call option on Friday pm at strike price $1600 and got $540 premium. I will close this out this morning at pennies on the dollar.
Was there risk? After rising $250 how much juice is left to jump up another $165. Easy pickings.
Some large funds have sold out of VRX, whose stock is down 70% from only a few weeks ago.
All the volatility is due to footwear - all fear the drop of the other shoe. When it drops, it could be Pearson admitting that VRX was in cahoots with Philidor in operating the insurance fraud. Ot it could be the ad hod Board committee finding no evidence of fraud.
Footwear, watch out for it.
Ackman bought in Ron Johnson to turn JCP around. Big mistake. Lost bucks.
Ackman is still waiting for the HLF short to blossom. He is in a loss now and to keep his short, must keep buying options.
Now he wants to use his activist position to salvage his VRX investment. His cost basis is $186 ps. It will take years before VRX attains that level again. Without the ability to roll up companies and raise drug prices, VRX becomes a large pharma company.
If Pearson and group knew about the shady practices of Philador, they will be fired and we see another down leg. If Pearson is clean, then Philador takes all the hit and VRX will move up.
It could go either way.
The congressional inquiry into VRX's pricing methods is the most pressing issue facing VRX. Congress will use their bully pulpit to make VRX and Turing squeamish. But at the end of the day, Congress will not dictate prices. More profoundly, VRX can no longer gobble companies, sell debt, jack prices and walk home with a tidy profit. Their business model is broken. For this reason alone, VRX will not rebound to it's price in August for a very long time.
And then there is the Philador fraud. Citron was right but for the wrong reason. The issue here is when did they know that Philidor was stealing from insurance companies? If it was recent, then VRX can clean up the situation, repatriate funds back to insurance companies and all will be well. However if VRX was part of the slime or encouraged the slime, then Pearson will be fired and VRX will fall further behind.
I don't think there is Enron type accounting wherein the coffers of the company are empty.
The huge drop was today. No margin calls. I think it takes until day 2 for the phone calls to start.
Margin calls is what causes corrections to keep on going.
In the case of VRX, enough is enough. Somebody will start to buy soon.
Most likely your spread option play will make you bucks.
But I will use weekly options to do the same thing. There is so much fear on the street that option premiums are huge. The good news is that investors are protecting their positions, not selling outright. Option sellers should milk this situation until it peters out.
Andrew Left has new information on VRX. But he chose to give the information to the traditional media for them to pursue. How damning the data is nobody knows. Left chose this path on the advice of his lawyers. It may take a few days of vetting, but we should hear about the new evidence soon.
My guess is that Philidor's illegal practices were known by Pearson and group. Moreover, said shady dealings were encouraged by VRX. If this is true, more pressure on the stock.
Carl does not want to confront Ackman on this as he did with HLF.
Most likely Carl is short. A small position.
Due to Hillary and general outrage, it is now out of style to buy drug companies and then raise drug prices. No worries, VRX will pivot to an R&D centric company and develop new drugs.
What? R&D? NFW! VRX is a slimy company whose business practices lead them to equally slimy Philidor. A company that is focused on cheating the customer or insurance company cannot focus on R&D.
The other shoe has not dropped yet. It will print an 8 handle when it does.
It's similar to Bruce Jenner changing to Caitlyn.
VRX was a cut throat company who knows nothing about R&D. Now they want to emphasize research. Not going to happen because the culture is not nurturing. It's like Caitlyn thinking about having a baby.
LOL! Cheating insurance companies is standard practice?