This is some quality research from the lads over at Goldman. After a debilitating share price decline, God’s men downgraded shares of VRX to neutral, “moving to the sideline” if you will.
“Given the events that have transpired very rapidly in recent weeks that have raised many questions about certain aspects of VRX’s business model, we have less confidence the market will reward the stock anytime soon without clarity as to the path forward,” wrote Nachman. “We move to the sidelines until there is further visibility on how management will repair the reputational damage to the company, as well as grow its business effectively in this increasingly challenging environment.”
The fuckery is so real, hardly anyone can believe it.
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even if this is all proven wrong, investors will always have suspicions about this. i think that the line between right and wrong has been violated here. the ends do not justify the means.
Jaaayyyyy Michael Pearson will need to go. Assets will need to be sold. This will take years to clean up. There is legal. There is illegal. And there is wrong. The third category can save you a lot of money.
If the old moral compass fails this one was still avoidable:
Hyperactive rollup strategy. Check. Heavily leveraged. Check. Opaque financials. Check. Inconsistent statements in public disclosures. Check. Major gaps between GAAP and non-GAAP earnings. Check. Strategy based on firing R&D and jacking monopolistic prices. Check and check.
And it’ll probably be 150 by August…
LOL. Could be. I won’t be riding the train.