so why did DNDN go nearly belly up if they had such a wonderful product? I actually had DNDN and had to sell at a loss. From what I understand, they had FDA approvals for their new drugs, but the problem was no body was buying the drugs. I played for the FDA approval but didn't realize it wouldn't sell...and stock drop like a stone. Are you saying now the product under VRX turn the corner?
i thought it was purchased at $108 (WSJ), but no big difference. Well, if he thought it was great at 118, must be fantastic to buy now.
Anyone buying or selling this stock has to be aware that at this stage big investors like Ackman will be in the know first, the SEC isn't going to care that these investors have direct access to VRX and front run any pending news. This case is another black eye for the market transparency.
Excerpt from Barron's: Ackman mentioned occasions recently in which he has had direct and apparently exclusive access to Valeant CEO J. Michael Pearson. Some were by e-mail and some by telephone. Pershing owns about 6% of Valeant and has been a vocal defender of its strategy.
The Securities and Exchange Commission’s Regulation FD makes clear that in the case of selective disclosure of material nonpublic information, even if inadvertent, the company must issue a press release.
There have been no press releases about those contacts and we don’t have any evidence of material disclosure by Pearson to Ackman. Still, investors should wonder if the risk of material disclosure by Pearson seems too high for comfort.
OMG, the analyst sounded like the junior PR person who works for Valeant...I get it, your clients are stuck in this stock and u want help them out, fine. But for her to come out and say gushing things about Pearson and how his credibility with analyst community is so wonderful and that she thinks he will do wonderful in front of congress? how would she know that, even Ackman has doubts? After this interview, her written piece is basically garbage, her angle is nothing more than a puff piece.
good post as was traderman's. Pennies to the dollar seem a bit extreme although deeper and wider financial shenanigans uncovered should knock this down quite a bit but to the pennies? even bond holders might not want to see that happen and step in on the equity side. What is tricky is that the company did acquire quite a few assets during the previous years and they are certainly worth something even if there was no price gouging applied, there is some decent value there. But a new business model to appease tougher crowd in Washington and new CEO (I think Pearson is goner) will just add to more uncertainty as you say. White Knight scenario seem plausible but if Ackman and other investors are losing their shirt even at $100+ they could balk at this, so is buyout off the table if Ackman says no? Let tax loss wash out and window de-dressing happen as well and see where this is at towards mid December, the lower the better.
then maybe you should pipe up because so far all you say is how big Ackman is, how dumb is that? So you lost a lot of money, just don't act so g ay.
wow, hit a nerve in your position and thinking Pinnacle? look at that, a wannabe CFA asking about valuation questions because he posted garbage. You want to learn little boy? you need a brain first.
i can assure you I never lost $2 billion in one company, big shot. BTW it is in the WSJ that he contemplated selling everything, I'm just reiterating his thinking. You really need to catch up.
don't think he will hang in there for long, there are so many good plays out there, why put billions in a loser? and the amount of time to hand hold this company through all the lawsuits and political landmines takes a lot of resources from Ackman as well. He bolts and dumps his 22 million shares, this thing goes sub $50 in quick fashion.
what about Instagram? I don't get these stupid comparisons in this thread, hey, if you are long, fine. But if this is the thesis of being long because Instagram is worth more than $1 billion and therefore it could be the same for Sprout? whatever gets you hope up!
this thing is volatile, you can lose your shirt both ways, it might gap up 10% one day and gap down 10% next day. My comment to you is the valuation you put forth is very questionable.
I'm a CFA, just because they paid say $1 billion Sprout, it doesn't mean it is worth $1 billion. They are the ones who paid the price for it. If they sold these in pieces to another buyer, you could be looking at 30 cents to the dollar on some of them. However, I agree your approach is definitely sensible in valuating sum of its parts. I would conservatively slice those valuation of assets in half and then come up with a bottom price for the stock in terms of asset sales. So this is a not a no-brainer, these are plenty of risks right here.
nice, he must be really good at convincing his clients that losing money is good and breakeven is even better and he should be paid big bucks for this. I like his client list.
this is the script, stock trade a bit sideways or down then creep higher and higher before the next qtr earnings release, buy on dips. Not a homerun but pretty steady upwards.
maybe, the guy is saying so many things on print. WSJ say his buddies indicate he would sell if have too. That is his client money too, so his recklessness can't be that extreme.