RE:RE:RE:why CXR was red todayLesslip wrote: The sector has been under wolf pack shorting by edge funds who pay writers and analysts ro downgrade the sector and produce contrived analyst reports that are eventually found to be worthless.
Canadian Pharmas have been targeted.
They have wreaked needless havoc causing billions to be wiped off market caps.
On the positive side, if you did not own Valeant or Concodia, these have been reduced to exceptional value.
It's true. These US Hedgefunds saw the weakness overall in the sector, so they short the headline names (many of these funds already target Valeant even when there is no sector selloff, so this is a perfect oppounirty for them) and then pay these bucket shop analysts to write false reports. These reports then feed off the recent headlines and nervousness and it creates havoc (people selling before it is actually confirmed whether the rumours are true or false), but in the meantime short sellers make millions of dollars out of the temporary chaos. Then they pull out (cover their shorts) when they've had enough and then the companies/sector recover.