I think what we have seen is a perfect storm. You had a market healthy sell off, driven by the greed of some pharma's to increase prices for life saving drugs which has drawn attention to the entire market.. Being brought to the front pages by the likes of Hilary Clinton and many others shaming the industry for raising pries without understanding why or even their right to charge free market prices for their drug they control and make. Throwing words out like, government controlled prices and maximum profitability for a life saving drug. All of which cast huge shadows on the industry as a whole.
But this will pass.
Life saving drugs takes billions of dollars sorting through all of the compounds to find the right ones and then years and billions of dollars to get through the government bureaucracy to get the drug approved and to the market. Then millions need to be spend marketing it, manufacturing it, and insurance protecting from it. Why would anyone do this without the ability to get those investments back and a return on those investments. If the government tries to penalize the drug industry they will end up slowing the advancement of those life changing drugs. Ask the person who is still alive today spending time with their kids if the drug or drugs are worth the money they are spending....? What is the alternative?
I am looking at the bio sector like the banking sector in 2008, they were all going BK and no one wanted them. They were never going to recover and things were over. But a few years later the strong ones moved back up.... Not as high but if you bought at or withing 30% of the bottom you printed money.
It was just a thought, these days my appetite for catching falling knives seems to be the norm vs. the exception..
I don't think he will have the exodus you thinking. Some will leave, yes, but the BIO pharma sector has been crushed... and by the time that next liquidation opportunity comes( some time in April) that stock will have rebounded a lot from here.
I think that is why Bill Ackman is still holding the stock. Like Arena investors that understand the science and the value of the investment long term, Bill knows what the assets in Valeant are worth.
Seriously considering a Valeant buy here. A new CEO could turn this company around huge. A lot of assets to be unloaded for large profits and great potential... Should see spin offs, sales, and other options.
formed the last 3 trading days.... That does not fit with the bashers thesis and the naysayers under a buck scenario... Strong accumulation, someone sat there on the bid buying and providing support and moved up steady for the last 3 days.
There are many reasons why a person would sell stock options they have been given as part of their compensation? Maybe to buy a house, diversify, maybe they need it to maintain their lifestyle.
For the record I am sure it is not news to anyone that they will need to raise capital, so if it is not news for us to you think it was not news for them..... And if so knowing they would get more shares locked in at lower prices why not sell knowing that they will have to raise in the future. Does not mean they know anything bad is coming. If they did sell because they knew the study was data mined and going to fail that would indicate fraud on their part and help from the FDA to facilitate the fraud. I just don't buy it. But thank you.
What possible reason would you have to mirror anothers post like this? Why don't you try real hard to come up with somethung original and of value.
funny when you look at it.
After hours total volume of 118,500 and all of the trades went through at close 1.50 or higher and last 100 shares went through 1.46 -.04
For what purpose.... I will never know.
Now that they can no longer harvest stop orders this kind of game playing will become more prevalent in the future. Spread FUD, post an article, pounce hard on the stock then cover quickly...
Stop orders are no longer allowed, where have you been.
The New York Stock Exchange, in a statement, said it would no longer accept what are called stop orders, beginning Feb. 26, joining the Nasdaq NDAQ, +1.49% in barring them. Another order type called good-till-canceled also is being axed.
It is why we are seeing the big wide swings anymore. The big short houses that short to harvest stop orders can no longer look into the book and see shares available for harvesting.... Now the only big short houses left are the ones that do DD and make a longer term short play.
they are on the hook for 100 million in CVOT. So if they want to give us 100 million and the drug back I am good with that.