exactly, the worst thing about this stock (like SUNE) is that it was a fund favorite so those who left the party is not coming back (if ever) and where is the fresh money coming from? who is going to touch this toxic investment in books before year end? If anything the remaining funds involved like Ackman probably have finger on the sell button.
sometimes heavy short stock provide some covering action to move stock higher, but don't see this happening. Just lack of institutional buying interest as the volume drops back to average and the price settles around here then drift lower and lower over course of the year. Waiting for other shoe to drop or some gushy news from VRX to help prop the stock. Mid 60's in a few weeks.
If it were that simple this stock wouldn't have fallen so much and they would give some 2016 guidance if not much is changing. So we going to have to disagree on this. Ackman pretty much said himself that the debt level is not ideal which seem to suggest he is going to push the company for asset sales. That will impact earnings. And with so much political pressure on product pricing, that game is going to be shut down or slowed down. That will impact earnings. And the leverage game to continue to buy up companies and jack up pricing is over. How much of growth was expected to derive from that ongoing strategy that is stopped on its tracks? what does that do to valuation multiple on the stock? and all this is before legal, regulatory and other potential negative financial shenanigans uncovered at the firm..then this will really take a dive. I'm a former long sold at 170'ish at a loss when Hillary opened her mouth.
Allergan CEO Brent Saunders was asked recently by some reporter whether he would be interested in buying Valeant given the price drop. Saunders didn't have a lot of good things to say about VRX product portfolio, now maybe this is gamesmanship? to talk down the assets and make a pitch for it? maybe.. Also the VRX business model has to change, what you describe is historical which we all know as leverage, cutting costs and ramping up product prices. What is this new business model going to be? They can't even give any 2016 visibility so how can one be sure how and what their businesses will look like after structural changes? Forget about retail investor interest, the action is institutional interest - and what exactly is catalyst that will drive VRX higher to compensate for substantial increase in risk profile of this company which include debt servicing questions?
fair enough, decision was made Nov 9th, but mass media picked up today so the way I see it, news is today.
see a pattern? you buy first and I'll take over...we partners. Of course, all fine and dandy here.
uhmm...how is this old news if the judge just made this decision today that trial must go on?? Plaintiffs are no slouch either.
and another debt heavy company punished to no end - down 75% from 30 to 5.. Just the ugly consequence of losing businesses when debt capacity is so high - stock gets whacked.
When it rains, it pours. I guess the good part is that you might as well throw all the bad news out now. Ackman getting insider info from Valeant? you don't say.
drift lower and lower, then now and again a little pop. But the downtrend to low 70's probably by month end... think this sort of action is bad for longs, no short covering to boost the price, just a stock settling in these low ranges and then drift lower from lack of significant renewed institutional interest.
cool...BTW your handle is also showing up as anam.saddiqui. Don't worry about slamming or agreeing with post under one ID, this is just yahoo msg board. I apologize in advance if that is not your double handle.
I don't think so - they talk to an ex-employee and consider paying that person for exclusive info on Philidor. Do you know what "exclusive" means? keep your mouth shut except to tell us.
thought in this business you don't say anything if nothing good to say but Saunders (CEO Allergan) basically slammed VRX when asked if Allergan interested in buying VRX - not much worth looking at, maybe a few growth products...lol.. now just maybe he is talking down the "assets" and then make a low ball offer? either way, looks like there is no premium for what is on VRX books.
by paying ex-employees to talk to them only. So when you don't trust mgmt at Valeant, you search for the truth and see how bad it is. That is crazy billion dollar investments hanging on a thread and Sequoia paid insiders at Philidor to talk and thought about keeping them quiet? this is absolutely crazy what is coming out in the press. Shows you how much confidence they have in Pearson and mgmt - not much.
Yeah, I got it alright that your panties are all twisted for being long.. why you angry little long? sure, we can play these word games because nothing of substance behind them. They can dice and slice and spin the headlines to fit whatever they think will look good, but it is all ba loney. Copy? Good, now go su k it up.
what are the catalyst to drive this stock higher? big funds are the ones who can move this thing and you think any big fund wants to own this thing on their books before year end and show their clients the toxic investment name on their books? I doubt it. I'm a former long, sold at 170ish at a loss, but never sit and wait for more bad news to drop. If a big fund like Trowe or Sequoia decides to move on, this thing will go to $50, and I think that is a real possibility.
what happened to the statement Pearson sees little or no impact to the revenues in 2015? how does one ever believe anything Pearson says.