When I say ‘death spiraling’, I really mean it. The deleterious price action has take on a life of its own. The news is the stock going lower. That’s when you know you’re in a death spiral. Like previous death spirals before, and many that will sure follow it, Valeant could succumb to the pressures of the market by losing the ability to refinance its enormous debt.
Then it’s light out.
When the stock was $250, the debt wasn’t all that important. However, with the stock at $25 and their debt/eq ratio greater than 3x, that $30 billion looms large.Twitter