re: its time to start paying dividends..really! Wells Fargo's Donald Maris who (the only analyst that got it right on VRX from the beginning) initiated a sell signal in Feb/16, cut his target on VRX again to $17-22. underperform.
He stated...2020 debt may not be covered
...deal with Walgreens worse than anyone expected
...bankruptcy possible
...if they sell assets the income that is projected will go down & negate their assumptions
...if they sell assets they will start with the lesser assets which won't reduce debt very much
Jim Chanos said
Valeant was genius at
gaming the system; that game is over.
'Chanos said Valeant’s downfall started as a number of top executives left the company. The short-seller said that one trouble sign in a company is when executives leave in tandem.
Chanos said "everybody" is using metrics that are "just as bad as Valeant's accounting ... I think that a lot of people are operating in this stock on the basis of false presumptions."
The whole idea was to buy things and then hike prices dramatically. The payers have woken up — that is the difference here. Valeant was genius at gaming the system; that game is over ... This was financial engineering, this was not pharmaceutical development.
Chanos said that its stock is worth zero minus the few acquisitions the company made in the past few years.
Game over. Going to zero.
PS...I don't own any stock nor am I short the stock.
carlos