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VALEANT PHARMACEUTICALS INTL INC T.VRX

"Valeant Pharmaceuticals is a global specialty pharmaceutical firm with a focus on branded products for the dermatology, gastrointestinal, and ophthalmology markets. The firm also has a branded generics business that operates primarily in Latin America, Eastern Europe, and Asia."


TSX:VRX - Post by User

Post by Lostinmarket123on May 20, 2016 7:18am
134 Views
Post# 24891439

Do not buy and hold

Do not buy and holdThis company is not one which you buy and hold ... With no growth story I wouldn't be surprised if this tanks to teens and then to single digits ... Only way forward will be debt restructuring ... That can happen by dilution to keep revenue and growth going ... Selling major assets will invite  lower valuation ... But  that is what the street wants so that they get cheap assets to play with... Street wants high quality assets to be sold at least price... The other way will be letting the company towards bankruptcy and get bad debt cleared at cheap price... Company will stand to gain most in this case as it will mean 30billion might be negotiated to 20billion under bankruptcy protection laws ... Equity holders will die but company can re enter market and resell shares just like many companies have done... I believe dilution is the best path .. Equity holders get some thing to keep and hope company does well in future ...whatever happens we will keep seeing 52 week lows .. Golden rule of the game never buy 52 week low till you know it has stabilized or going up ... Same thing on short side .. Never sell 52 week lows
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