Valeant Pharmaceuticals Intl Inc (VRX) Stock : Shadows Stronger Than Light
Our thesis on the stock remains bearish unless we see some more positive developments in future
Published By: Eunice Gettys on August 31, 2016 11:51 am EST
TheCountryCaller has been a bit uncertain to recommend Buy for Canadian drug-maker stock, Valeant Pharmaceuticals Intl Inc (NYSE:VRX). Perhaps our conservative stance shows its worth, as shares of the company trades lower at $28.06 (11:07 AM EDT). It seems that the challenges posing to the company have weighed out the positive developments, as the bearish side of the coin has gained strength lately.
Valeant Pharmaceuticals is facing some serious legal challenges, and is alleged of manipulations in drug prices to inflate its topline. The claim amounts of these allegations are more than the value of the company, which has been our concern ever since Valeant returned into the limelight. The one-month-old leadership of the company will have to face these challenges and strive to get Valeant out of this scandal.
Although Valeant has been cooperative on this issue, the unusual stock price movement and sudden change in the financial numbers is indeed awkward. It has recently been making efforts to expand its product portfolio by entering into new alliances. Moreover, the Laval-based company has also successfully renegotiated debt terms with its lenders and plans to retire a huge pile of its debt this year.
In our opinion, it is important to get a clean chit in these allegations; otherwise, a fear would always persist in the minds of investors. The Street holds an optimistic view about the company’s future as the consensus PT reckons a significant upside from the current levels.
It is important for the management of the organization to deal with these challenges on priority basis. Our thesis on the stock remains bearish unless we see some more positive developments in future.
zal het nogmaals zeggen..... perfect timing...