A hedge fund hotel is generally defined as a company with an unusually concentrated group of shareholders.
Valeant is more like the Ravenite Social Club. The stock routinely trades lower ahead of bad news, the CEO comes and goes and results have been restated, adjusted or simply retracted 3 times in the last few weeks.
Why would a self-described “value-based” mutual fund, one with roots to Warren Buffett, keep more than 20% of its assets in any stock, let alone a shifty Pharma roll-up dumpster like Valeant? What the hell is Ackman doing with such a huge portion of Pershing Sq in this mess? How is Paulson still a billionaire?
I can’t answer any of that. No idea. I only know two things: 1) this whole thing stinks 2) I wouldn’t touch this stock with anything I wasn’t willing to burn
I thought MAYBE? Ackman sees something in the Pipeline that makes all this abuse worth it. But this year we get OTC eye whiting and contact lens. OMG not game changer unless we can convince the world that they have “dirty” eyes, lol. Acne Product, but that is 2019. Not sure at all why he fell IN LOVE with this stock?? ROFL, agree about Paulson. Thank You again for your super kind comments on the other blog.
Now Valeant formally acknowledges it’s under investigation by SEC.. Here we go.
$VRX was using the rollup model to great effect. It was a darling until it wasn’t. If there stock price doesn’t recover then they will be hard pressed to continue the MA activity. This stock was/is widely held by many Cdn money mangers/institutions. I fear it may be the next Nortel.
They are insane. I still haven’t seen their announcement. They basically implicated themselves in an email. The stock shows an obvious news leak over the last couple weeks.
All of which these idiots knew when the CEO came back yesterday.
How many agencies are they being investigated by? And they knew it since q4? BC… Wow… They are really supposed to report those kinds of things to everyone. All at once. BC it’s super illegal to just tell a small group of investors.
They’ll be lucky to be Nortel.
Nortel in the sense that many Canadians bought the home town hero all the way down… had to be my dad not to buy it at 30.00$ … when I told him it was going to go BK he thought I was nuts….good news is he did not make the buy. to this day he still looks askance at me should NT ever come up in polite discourse
The rule of alternation yesterdays bull is tomorrows bear. The Capitol Hill gang looking hard at pricing of drugs – think GILD for a moment- and VRX and the shenanigans they are up to means a lot of other decent names in the space are getting croaked. Political grist is being milled via the biotech… the IBB has more air underneath it I am afraid and will be a drag on the /NQ for awhile…. expect the /NQ’s to remain a lagged along with the R2K
PS IBB should trade back to April 2014 monthly candle….. 207 was the low……