RE:Don’t understandLookingforclues wrote: Why are VRX and ENDP rising is price with such huge debt loads.
I was reading that they will never be able to reduce said Debt.
So how come? That is putting it in very plain language!
I'll explain it to you. What your reading about VRX and ENDP never being able to reduce their debt is a bunch of horseshitt. Valeant has gone from $33 billion to $25.5 billion. They've paid down over $7 billion since 1Q/16. Just last week they paid 150 million. They pay as cash flow comes in. They also have no debt payments upcoiming until 2021. ENDP has stabalized and net debt is dropping. You may have forgotten these are cash flow machines. Valeant can cash flow over 2 billion dollars despite interest payments of $1.6 billion. Every billion that gets paid down becomes equity and the stock price rises accordingly. There is no point in hoarding cash and being totally underleveraged. The disaster management was certain to happen, didn't happen. I hope this is putting it in plain language for you.