The debt is certainly an issue, but the bigger concern for this company is headline risk. Drug pricing, and their model in particular will be a political football the candidates will be kicking around right through next year, not to mention the possible Federal investigation.
I haven't followed the Dendron issues....what is the update on that? I tried to Goog search it, couldn't find anything. Is there talk about canx that deal? thanks
An analyst at Mizuho started VRX with a neutral rating and a $155 price target, saying "there's way too much risk in this story, and VRX could become a target of a highly visible government investigation into its pricing and R&D investment allocation."
I think the party is over for WYNN and the markets. AAPL, the darling of the market, is getting crushed. Oil did a huge intraday reversal....and now it's time for WYNN to come back down to where it should trade on a fundamental basis, until the gambling space starts growing again. Golden weeks mean nothing when the Chinese gamblers have far less disposable income than they did a few years ago.
Anyone remember trading in the year 2000? That's the year Ralph Acampora said the Nasdaq will rise up to 5,000! (at the time, it was around 4,000). Everyone knows right after his call, the Nasdaq crashed. Just this morning, Acampora came out with a note telling everyone "we're off to the races" "we're on our way to new highs".....LOL....What a contrarian indicator this guy is!
WYNN had the lowest gain for the week of all the casinos, 2%. But analysts indicated the overall revenue declines will continue...... "As for the September revenue of Macau-based casinos, a decline of 33% was registered, which is slightly better than the financial performance in August when the drop was 35.5% YOY. According to market analysts, the decline in October is expected to be approximately 32%."
In other words, one week does not change the fundamentals or trend. This rally is short covering, a technical bounce, and not much more. No, I'm not short, but I would go long under $60..
Absolutely nothing has changed fundamentally. Rhetoric from Chinese leaders is nothing more than minutia. And yet, the casino is open....literally, because bidding this up this far, this quickly, is as we all know nothing more than short covering. I just answered my own question.
Wait, let me guess.....The Fed probably won't raise rates this year, more free money. They will NEVER raise rates, why do you think gold is surging? It's all about the markets, it always is.....Everyone knew they wouldn't raise rates, the fundamentals are still horrible.....It's time to fade the short covering rally.
Actually I think your opinion has merit. This is probably more of a short than a long.
Who's next? Will Hilary downgrade VRX? The market is like a circus, and VRX is nothing more than a trading stock in a huge casino.
People never learn their lesson. The jobs report was a disgrace given we're supposedly 6 years into this "recovery". We may be entering a protracted bear market.
If the shorts were smart, they would have covered and gone long ITCI. Price targets were recently raised to over $100 on ITCI.....There is absolutely no reason to sell, just keep accumulating.
LOL....Cars aren't "sold" in the US, they're financed through credit with exorbitant interest....for 5,6 and in some cases 8-10 year financing! This means of course if someone loses their job, can't find a job, or their wages are stagnant (which is the case), they won't be able to make their truck payments, and it all spirals down. So before anyone thinks car sales is a good thing, all it does it put everyone in even more debt.....
of the end of the US stock market. RIP all dip buyers....Don't listen to CNBC cheerleaders, they're still out there.......Buy protection, either through options, or VXX, UVXY, or TVIX. But don't take my word for it, just watch the market....Now in addition to China, you have geopolitical issues, a weak economy, and a Fed who has no idea what to do next. This will set off a chain of events that may take the S&P down to about 1750 before it stabilizes. Good luck to everyone.
Most people in today's market don't realize or embrace the fact that volatility is the way to make money. Sitting around, waiting 2-3 years for a stock to go up or down is crazy. But VRX has changed hands with $10 swings in each direction the past few days.....It's not for the faint of heart, or someone who needs their money to pay bills....But it's certainly a great trading stock.
The cheerleaders are still out there, Jeremy Siegel, Tom Lee, and of course Jim Cramer. But what they're not telling you is:
1) The banks that leverage all those companies in debt (energy, industrials, biotech, etc.) will have to call in the loans, and stop lending money to money losing entities. This will exacerbate the market selloff. One or two oil companies that collapse could set off a chain reaction in the broader markets.
2) The Federal Reserve really has no tools left, except to do QE-3, which will be a disaster and probably crash the markets. If they don't raise rates, they have no credibility, and if they do, the markets will suffer regardless. So CNBC is not telling you that the market finally figured out the incompetence and failure of the Fed.
3) Finally, CNBC and the financial media will not tell you to go to all cash immediately, because that's not their style. They'll still talk about bargains, cheap stocks, oversold conditions, etc. Until they tell you the truth and create some panic, the markets will continue to sell off. I don't think the S&P will be a buy until at least 1750, and even then it could go lower.
In case you haven't received the memo, the entire healthcare space has been pummeled the past few days, and it's getting worse. Biotech is leading the way down, after leading the market up.