My bet is VRX management lied. Reason is simple. Company face BK and management risk going to jail if they admit accounting fraud. And there is always something when a company sells to subsidiary's subsidiary.
No company keeps perfect book. No company and VRX can survived microscopic examination.
Never trust the buybacks. It is often done to help insiders unload at high price.
Saudis need $100 oil to balance budget. They've been selling their investment all year.
Face it. Election time is open season on biotech. 2016 going to be the worst. Both sides will have candidate that talk about crony corporations gouging the people. Budget ,deficit..debt limit..
They own Wall St, the financial press, the FDA, They will manufacture more negative news.
A few possibilities, false drug trials. gouging, price collusion, bribery, illegal payoffs......
While the rig count is positive. Some of those rigs might be PXD's and Saudis are not likely to let up just yet. Not enough bankruptcies yet. They let up every dog will be able to hedge again. That just prolongs the pain.
I also expect Dollar to resume rally even with todays job number.
Sold my cheap trading shares.
Fear of price control will not go away. Pharmas will try to put up a good face by lowering some drug prices even before then. This will hurt earnings. 12% annual price hike is history. Growth rate will be lowered.
I have about 30 small cap biotech in my port. They are down average 8% today. Down 30 40% in two weeks. I think some kind of bounce is due. Sold my LABD protection at market close today. Buy it back tomorrow.
IBB is going much lower for sure. Don't think SP will go that far. All is required is Saudi Arabia end the price war. As oil companies rally the whole market will rally.
before baker rig count.
There was a lone wolf attack on Saudi oil pipeline central. Failed. But you bet there would be better organized attack on the Saudis anyday now. ISIS is bound to move in .