They were paying millions a year for a salesforce hoping to sell this huge dud of a drug addyi. It was throwing good money after bad. The only thing left that I'm worried about is the SEC investigation into their Philador division, there will likely be some pretty big fines but it will be manageable. They will soon find a big name pharma CEO soon and this stock is off to the races.
Hedge funds like Ackman's and large mutual fund holders like T.Rowe Price aren't leveraged and will likely be adding more once there's a sign of good news. Retail brokerage account holders of VRX would've likely been sold out today, most panicked out of the shares. On top of that, I'm sure there's loads of novice 'traders' who actually went short down here and will be easily squeezed out once the company files it's 10K within the next month. CEO Pearson said he expects the company to file sometime in April. There's little to no risk of bankruptcy with only $1B in debt payments due in the next two years. They can renegotiate the terms of these loans for an extension or sell a couple of their drugs. Simply filing the 10K will cause the stock to rally sharply, keep that in mind.
They will be launching Google fiber in Atlanta with pricing of $50/month for 100 mbs speed, there are already tons of people lining up to enroll, it will for sure crush the local cable companies who've been price gauging their customers for years! Many more cities to launch in near future
Google also received approval for their driverless car system to be considered divers, paving the way for an earlier than expected launch. This is huge news as Google is now firmly in the lead with their driverless car technology.
I wouldn't be surprised if "other bets" was generating close to the same amount of revenue as core search in 10 years. This company will show impressive growth for many many years to come. Stock is cheap here, it will overtake AAPL again as biggest market cap co very soon.
Featured story in Financial Times for Monday. No need to buy $400-500 Oculus Rift or Sony VR headset when you can use your own phone for under $100. Google will sell hundreds of millions of these and have a lock on VR technology as well as the billions of dollars in potential revenues from software as a result. This opens up a massive new revenue stream that nobody expected.