positive news to help drive the stock coming next week, but we wont be rid of the short sellers until we clear 34, so just get used to their rants...going bankrupt...drugs not selling...already insolvent...blah, diddy, blah....
he just said that based on munger's comments on valeant you should sell it. he said on friday that you should buy it. before that he was saying to sell the stock. you have to see that he is completely telling people to do the opposite of what his trading buddies are doing. they all bought the stock right up to the 10K release. sold it off on friday and then continued to hammer it on the munger comments and now are buying it again. i wonder if they even had planned to get the question about valeant asked at the berkshire meeting. pure wall street fraud. as usual, cramer saying to sell is a great reason to buy. he is the ultimate contrary indicator.
i am a strong buy on valeant, but dont hold your breath for monday morning pop. they will wait to file the 10K until the 28th or even 29th.
it explodes upward. the only issues were 58 million moving from one quarter to the next. that is it. actually the restatements will add .08 a share to the earnings according to the latest press release. stock is going to fly
who cant pass a single bill to move the country forward, but all want to strut in the limelight to rail against corporate greed. here's a fact - private enterprise in america is the best in the world and it is the government that is at fault for all the problems. let's get rid of those politicians, one by one, throw their behinds out.
to trick some poor dumb investors. wait until the big money comes in tomorrow and looks at this BS. nice to see all the bashers are lining up their lies at the same time. do you guys coordinate your lies? see you in the morning with my buy orders.
if they were to sell them off, so the downside on this is limited. if the assets are worth 50 billion, then the stock price would double. the valuation would probably be at least $70 billion, which would be half of what pfizer is paying for allergan.
the real change has been in the media reporting. there was never any real chance the company would default or go bankrupt. they are getting a new ceo fast. but wall street makes money by tricking people and they have the ability to get reporters to write what they want. so they trashed the company and created fear that drove the price to insanely low prices. the way to make money is to understand this and do the opposite of what wall street wants you to do.
it says 2 things. one - says that the canadian authorities believe the 10K will be filed within 15 days. otherwise, why would they limit the time to the next 15 days? this is also trying to prevent them from buying shares cheap, not selling shares. the time they would have needed to protect against insiders selling ahead of key events is long past. i wonder if this hurts ackman's plans to buy shares lower. maybe the canadian officials were informed that his hedge fund is buying up shares on the cheap here.
he freed up $834 million from his sale of mondelez and now can double his take in valeant. this is the type of investment ackman will definitely make at this price. it helps that he has told investors that he believes the price can be repaired quickly, how can he be accused of insider trading if he is clear that he believes the stock is undervalued?
1) the funds liquidating shares will run out of shares to sell 2) the financial statements will be filed and that will resolve the debt covenant breach issue 3) new ceo will be announced and a big jump on that news 4) next quarter earnings report will show that this was a one-quarter event and that future projections are back on track 5) products will get approved and begin marketing, they did not include any new product launches in their forecasts, so it is all upside.6) ackman will announce he has been buying more shares 7) other hedge funds will reveal that they took large positions 7) short sellers get squeezed out
some creditors resist terms - sure as long as it is under 50% of the creditors, it doesnt matter. this is the type of market manipulation that the sec really gets to get all over. but it wont. do creditors really want to see their bonds drop in value because they wont approve very reasonable terms? doubtful.
as long as they file their financial reports they are not in any danger of default, so WHY would the company be broken up when they have plenty of cash flow to pay the debt burden and even retire 1.7 billion in debt this year. think, man think. give it your best shot.
notice that valeant had released a press release that stated the company would have 6.2 - 6.6 billion of adjusted profit then then revised that to 6 billion. where did that 6.2 to 6.6 billion come from? it was in there because they changed it at the last minute. they made a decision, probably with the input of key shareholders, to tank this quarter and then handily beat the numbers later. the numbers of 6.2 to 6.6 billion are too precise to have been a simple typing error. it was the original numbers and then they decided to give themselves a much lower target. so that earlier forecast would also have had higher revenue numbers - about another 600 million at the mid-point of guidance. i figure that vrx will need to establish a base here for a while and then will explode up once the debt covenants are resolved and the guidance for q2 comes in at 2.8 billion in revenues, indicating that it was on-quarter revenue problem, combined with about a 10% reduction in revenues from a lack of price increases.
and then when the paid pumpers come out it is time to sell. but right now the people pumping the stock are real investors like me, not a bunch of one-line posters.
valenat is now undergoing the worst possible trashing. warren buffett comes out and trashes the company. this is the apex of the fear and selling here. they want to drive it down as hard as possible.
they didnt use debt to fund day to day operations you fool! they used it to acquire companies. the cash flow from the companies services the debt easily. i see the bashers are out in force this weekend, but next week will be a good one for the longs. the fund managers who just wanted out before the weekend have already sold. maybe you get some more downside monday, but let's see what happens when the company communicates that it has reached agreements with the lenders on covenant waivers.