So let me get this straight, the CEO of PRGO, Joe Papa, is leaving PRGO in order to head up VRX. That makes sense, if you’re into lateral moves. But before Papa left PRGO, he blew it to smithereens.
In addition to announcing Mr. Potato Head was leaving the company, they also threw in an earning warning of the first magnitude.
PRGO Lowers FY16 EPS to $8.20-8.60 from $9.50-9.80 vs. $9.52 consensus. The majority of this change in guidance provided on February 18 is the result of a reduction in pricing expectations in our Rx segment due to industry and competitive pressures in the sector. The remainder of the reduction is primarily due to weaker-than-expected performance within the BCH segment for the next three quarters and lower expectations for consolidated new product launches.
The initial response to Mr. Potato Head joining VRX was one filled with elation. As the news sank in and people had a chance to mull it over, the stock began to give back its gains and are now lower for the day.
Meanwhile, shares of PRGO are getting poleaxed, off by 17% for the day.
Shares of PRGO are down more than 50% over the past year.
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But -50% is better than -88%
I consider this a win. +48% upside for VRX!
*38% (cant do math)
moron