RE:Ackman buys 2 million more shares of ValeantAckman is a close personal friend of Pearson and doesn't have a lot to lose after already making billions on the insider trading scandal of Allergan. So yeah, I'd trust the gum under my shoe's judgement more than that biased tool.
adamchess wrote:
freewest - I don't think he would be throwing good money after bad if he thought the company is worthless. I trust his judgement over yours.
On Tuesday, Ackman’s fund Pershing Square bought two million Valeant shares after the drugmaker tumbled in the wake of a critical report from Citron Research, a short-seller, who accused the Quebec-based company of engaging in sham transactions and characterized its findings as a “smoking gun.” Ackman’s purchase adds to Pershing Square’s exposure to Valeant. As of the hedge fund’s last filing, it owned 19.4 million shares, worth in excess of $3 billion at the close of trading Tuesday.
The purchase by Ackman underscores his confidence in Valeant, even as weeks of scrutiny into its pricing and operating practices have punished shares. Most recently, Valeant surprised investors by disclosing it wholly owns a specialty drugstore, Philidor Rx, which accounts for significant sales of some products like Zublia. Michael Pearson, CEO of Valeant, also told investors this week he may temper the company’s aggressive drug pricing practices and even divest some specialty businesses.