Please explain this to me: VRX buys company X at S10B. VRX buys the company by borrowing. So it's debt and goodwill go up about the same. Then VRX valuation increases by more than $10B!!?? How's that work? It's not in any accounting or math class I ever took!
So you're saying borrowing $16B and taking on $20B of goodwill and intangibles is sound business? And, the fact that VRX needs to keep borrowing and ballooning debt and goodwill on it's balance sheet to keep going is fine? OK, I'm sure you inherited your investing funds. I worked hard for it and don't want to see it evaporate because VRX couldn't find it's zillionth acquisition and therefore failed.
It is a "roll up" company. Whatever lipstick you put on this pig, do it with the knowledge that once the HFT crowd moves on, this thing will crash. There is billions of dollars of premium from prior company purchases and that's a fact. VRX has almost no R&D and that's also a fact. This business model has NEVER worked. Why is this time different? Explain intelligently and please don't say Cramer likes it so it must be good!!
The stupidity of the masses never ceases to amaze. This company is buying growth at a high premium. And yet, they are being bid up as if these guys are geniuses. They have almost no R&D. They will keep buying until they're caught and then... COLLAPSE!! I recall a number of companies with this business model a few years ago - anyone remember Worldcom? How about AOL? How did those businesses do? Anyone remember?
Rumors are flying and as reported by Financial Times, execs met a couple of weeks ago for a suspected take-over bid. So Murdoch is looking to expand his media and DISCA with it's tremendous content producing machine would be a perfect target. Makes sense if you think about it. Only question is how high a premium should us shareholders agree to?
The corner gas station said they don't take AMEX!! Oh no! That means another Billion of market cap to come off...
It's a good thing it beat earnings handily. Oh! Wait! What? It missed earnings? Ah well that explains the huge 75% spike in the past 4 months. I can sleep better now as a long shareholder of this company.
Problem with shorts are they never know when to stop until they get massacred in a short squeeze. That's why there is a short squeeze EVERY time. Oh well. Perhaps this time its different and the world will stop using oil in 2015!!!!
Old song. Sing a different tune - ala OPEC cuts production by 1,000,000 barrels per day. Oil jumps 7%, EGO up $12!!!!! Ouch!!
OK go ahead and short tomorrow at the open. You will make a huge amount of money according to your thesis.
But drillers especially SDRL is not dropping in the face of the weak oil. That's bullish. Thanks for pointing out the oil weakness.
Agree totally. If you cover his buy or sell picks, he's mostly going based on the short-term technicals. So always buy what's going up (no matter what valuation) and always sell anything that's beaten up (no matter how low).