RE:Revised 2016 SP Target Regardless Of VRX Responsewhen2buy wrote:
Unfortunately, even a vindication of VRX's position and business practices will not return the stock to price levels recently seen. I have owned Short attack stocks in the past and rarely does proving accusations wrong bring the stocks back to previous highs.
Regardless of recent allegations, VRX own CC suggests a greater emphasis on debt reduction and organic growth in 2016. Given this, analysts will be taking down earnings estimate substantially over the coming weeks. Current consensus suggests a 39% increase in cash earnings in 2016 which seems unattainable under the current governmental & institutional scrutiny of pricing & acquisition strategies.
Given this, one can calculate a 12 month target price higher than today's but certainly not back to the glory days of $200+ as this was based on aggressive growth estimates and inflated growth multiple(s) of 20+ P/E.
We can only hope at this stage, the SP will stabilize through Monday's CC.
Continued GLTA, here
I agree, also VRX was never really worth $250-$350 because growth by acquisition should not be priced the same as organic growth - the market did not reflect this reality because of the street's infatuation with Mike Pearson. This will rebound somewhat however the street will now be demanding more realistic metrics - the days of astronomical PE's and Price to NBV are over.