RE:And the Herd went - Moo, Moo, Moo, Baah,Baah, BaahI cannot agree with you on VRX. I think there are some serious concerns with that company. Their biggest acquisition looked like a dud at this point. Salix acquisition alone probably account for half of their debt. This is suppose to be a star product driving VRX's organic growth for years to come. The worst part is that management tries to avoid the tough question by stating it is an inventory problem, the same excuse they used for three quarters already. They later blamed on it on Walgreen transition. If Salix does not perform, VRX is in big trouble. They can sell their other good buinesses to reduce debt but still won't change the fact thtat the company is over levered relative to cash flows. Of course, everything changes if someone overpayd for their assets but i doubt that will happen.
$10 EPS is not bad but if you dive deeper, there are doubts they could achieve that. Q1 number is guided at $1+ I think, half of what they guided previously in Jan. Pearson said they basically lost a quarter. So you need next three quarters to super outperform. It would be a tall task with outside pressure while your key employees leaving the company.
I hope VRX recovers. It is a great company and was wrongly accused by short sellers, Ackman haters, and politicians in so many ways. Micheal Pearson was away for two months and everything just imploded within the company. Schiller clearly did a bad job as Q4 numbers were stll pretty good and Q1 just fell apart under his watch. Clock is ticking for MP to turn this ship around. If Salix does not pick up soon, stars are lined up for the end of this company.