RE:RE:And the Herd went - Moo, Moo, Moo, Baah,Baah, BaahDeathPool wrote: Stockcoach, Shame on you for saying that 50% of Valeant's equity evaporated today because of a mediocre change in guidance! Did you miss the part that includes a debt default risk and ongoing federal probes .... plus other disclosures in today's conference call that you obviously didn't listen too. You should be spanked for even bringing up Valeant on this board, never mind trying to pump it in the same post as CXR. And no wonder notwrong feels forced to post against the pumphouse gang when you have a habit of making glaringly false forward-making statments (such as, "it WILL be +$20 in a couple of days!") You may want to consider modifying your linguistic perspective and reconsider ever bringing up Valeant in the same breath as Concordia.
Because I believe in a balanced post, I give you an A+ for your subject heading. It is so cute! Reminds me of a nursery rhyme when I was a child.
Stockcoach1 wrote: Wow what a day with VRX . The panic made it drop over 50%. Way overdone for the mediocre change in the guidance. After all, in my opinion, it was overdone even before today, but the investor herd went wild. And when the herd gets panicked, they run tripping over each other as we saw today.
You watch, by tomorrow or the end of the week, the herd will realize that VRX will still earn around $10/SH and on a 10x multiple, this stock is wort $100.00 CAD. Then they will all be rushing back in. This stock will be up $20.00+ from here, in a day or two.
But as usual, CXR got sideswiped in all of this. Hopefully MT will come through with the guidance and then some. If he does, this will be the moment where CXR differentiates itself from VRX and It's not inconceivable that eventually CXR's SP will exceed VRX.
Notwrong incognito; I'm not pumping or even own any VRX. However, all the stuff you mention was known in the past and already reflected the 60% discount. What I'm saying, that the miss by a few cents and a drop in 2016 guidance by roughly 12%, does not justify the further 50% drop. The "debt default risk" you mention is strictly a technicality, where some creditors could seek a rearrangement of the terms on the loans because of the delay in reporting. This however, will never happen since the creditors want to see their money paid out.
Today's action was a knee jerk reaction and will correct. There is a lot more value in VRX's product, then what the share price reflects and will be realized either through change of management or ownership. I stand by my statement.