Multiple Factors Are Contributing Towards Today’s Gorilla Raping Run in $VRX

Bucket shoppe analyst from Rodman and Renshaw believes the shares are worth $90.

Multiple regulatory decisions slated for this month. In our view, July is shaping up to be a busy month for Valeant, given the potential for three regulatory decisions in the coming weeks. On July 19, 2016, Valeant is slated to have its Biologics License Application (BLA) for brodalumab, an investigational anti-interleukin-17 (antiIL-17) monoclonal antibody for the treatment of moderate-to-severe plaque psoriasis, reviewed by an FDA advisory committee. We note that the brodalumab BLA currently carries a PDUFA approval decision date of November 16, 2016. If the panel discussion is favorable, we believe brodalumab could be approved in the U.S. by the PDUFA date. However, at this juncture we do not include any contribution from U.S. sales of brodalumab in our revenue model. Also on July 19, Valeant is slated to receive an approval decision from the FDA on oral Relistor® (methylnaltrexone) for opioid-induced constipation (OIC). In our view, a positive decision could significantly expand the target market for Relistor and may enable it to become a blockbuster with over $1B in annual sales. Finally, we note that on July 21, 2016, Valeant and its partner NicOx S.A. (COX.PA, not rated) are slated to receive an approval decision on Vesneo® (latanoprostene bunod) for the treatment of glaucoma. In our view, this is the highest likelihood approval event for Valeant, and we consider Vesneo to have >$500M peak sales potential in the U.S. alone. Since Valeant’s Bausch + Lomb (B+L) division is currently in labeling discussions with the FDA, we believe that timely approval of Vesneo® appears likely. Given these near-term catalysts, we reiterate our Buy rating and $90 price target on Valeant shares.

The WSJ Heard on the Street have a boolish article this afternoon.

Lastly, more than 12% of the shares are short. Couple this with the fact that the stock is off by 90% over the past year, and you have yourself a face ripping rally for the ages.

Mr. Ackman is pleased.

House Dupont might need to levy another tax against the good people of Delaware to pay for all of the mounting lawsuits against them and their little spinoff. Apparently, a jury awarded David Freeman $5.1 million plus punitive damages for giving the man cancer, by egregiously dumping green fucking slime into the water.

Back in October a woman won a case against them for causing kidney cancer, without being awarded punitive damages.

What did House DuPont do, allegedly?

THEY FUCKING DUMPED 55,000 pounds of toxic chemicals into the Ohio River, which then made its way down into the wells of the local water companies.

There are 3,500 other cases of this magnitude behind Mr. Freeman’s, readying to come forward.

The chemicals wantonly dumped into the Ohio River cause kidney and fucking testicular cancer. It’s like a sick House Dupont joke.

“Yes, John, let’s give all of the little people testicular cancer and make them cut their balls off.”

“Wise idea Henry. Let’s do it, indeed.”

Shares of CC are off by 19%, as they will pay most of the unfavorable ruling. By the way, Chemours is a recent target of Citron research.

Shares of DD are down 2%. It was very wise of them to spin CC off, no?

I hope they all rot in hell. But they’d like that, wouldn’t they?

After falling to a 31-year low Wednesday, sterling may sink another 7 percent to 11 percent this year in the aftermath of the U.K.’s Brexit vote, according to Goldman Sachs Group Inc., Deutsche Bank AG and Citigroup Inc. The currency will weaken to $1.20 on expectations the Bank of England will cut interest rates to contain the economic fallout from the referendum, according to Goldman Sachs and Citigroup. Deutsche Bank has an even more bearish forecast, seeing $1.15 by the end of 2016.
“The question is: how quick do we get there?” Richard Cochinos, London-based head of Europe Group-of-10 currency strategy at Citigroup Inc., the world’s biggest foreign-exchange trader according to Euromoney magazine, said in an interview with Bloomberg Television. “You’re going to need much greater inflows from investors long term and short term before the currency stops weakening.”

The pound has tumbled to a three-decade low during the past two days amid mounting evidence the Brexit vote is hurting confidence in Britain’s economy. With real-estate tremors and fund suspensions, concern is building that a failure to control the aftershocks of the referendum will propel the nation into a recession.

For more on the pound’s 100 years of debasement, click here

“We are switching to forecast a second leg of weakness for the pound, as the Bank of England’s policy response drives the currency weaker,” wrote analysts including Robin Brooks, chief currency strategist at Goldman Sachs, the world’s seventh largest currency trader. The bank forecast the exchange rate will reach $1.20, $1.21 and $1.25, respectively, in the next three, six and 12 months.

Goldman Sachs, Deutsche Bank and Citigroup are among the most bearish sterling forecasters, with only 11 of 62 analysts surveyed by Bloomberg seeing the exchange rate dropping to $1.20 or lower by the end of the year. In December, Deutsche Bank called for a 15 percent drop in the currency.

The pound fell as much as 1.7 percent Wednesday to $1.2798, the lowest since 1985. The Bloomberg British Pound Index, which measures the U.K. currency against major peers, has tumbled 13 percent since the referendum, and dropped to the lowest in data compiled by Bloomberg since 2004.

The pound “has much more to go,” wrote George Saravelos, co-head of global foreign-exchange research at Deutsche Bank in London, the world’s No. 4 biggest currency trader, in a note. “Our aggressive forecasts may still be under-stating the level of weakness.”

I’d love to report something meaningful here. I read the minutes and all I got for it is this stupid blog post.

“The committee” said barring a deleterious economic headwind, raising rates would be appropriate. Yeah fucking right.

All of the morons at the Fed believed inflation was likely to rise above the 2% target. Real GDP was a little soft, causing them to back down from their neverending threats of hiking rates IN THE FACE OF AN EARNINGS RECESSION (emphasis mine).

Lastly, inflation expectations are bolstered by the stabilization of crude and forex, while a bump in resource utilization and wage growth should pave the way for–err-higher rates.

Does anyone believe this nonsense?

Separately, the Atlanta Fed’s GDPNOW lowered GDP estimates for Q2 to 2.4% from 2.6%–citing fucked up vehicle sales as one of the reasons.

The market is yawning this off, with the dow higher by 30+

Let things settle down for a minute or two. Permit yourself to see the forest through the trees. Now ask yourself, why is gold going higher?

Is it a trade? A bounce? Or does it signify something more meaningful?

Is gold being used to store cash, by wealthy people afraid of their local banker? Is it a repudiation of central bank over planning?

There are a thousand theories as to why gold continues to outperform. In theory, gold is supposed to be an inflation hedge. If so, how can gold trade up 30% for the year when there isn’t any inflation?

My theory is fear. Fear of the unknown, the persistence of central banks to do anything, a careless recklessness to avoid writing down losses, that has given birth to a new era of irresponsibility from our alleged protectors of capital. We’ve become creators of capital for to explicit purposes of financing bloated fiscal budgets.

I’ll repeat that for you. We literally lend ourselves money, by creating new money, in order to fund bloated budgets, because our politicians don’t want to cut back on spending. We are spending way more than we can afford. But if you take away the entitlements, people will get mad and politicians won’t get reelected. This is dereliction of duty at the highest level and everyone is going to pay for these sins.

As such, gold and gold miners are ripping higher today.

I am long GLD, AU, AUY and NEM with 25% of my assets.

This is code talk for getting the hell out of Greece. Where do you think these so called shipping companies reside?

Deutsche Bank is joining a cadre of other European banks in a race to reduce exposure to the beguiled shipping industry.

“They are looking to lighten their portfolio and this includes toxic debt. It makes commercial sense to try and sell off some of their book,” one finance source said. “They are not looking to exit shipping.”

Deutsche Bank, which has around $5 billion to $6 billion worth of total exposure to the shipping sector, declined to comment.
Germany was one of the world’s main centers of global ship finance before the 2008 financial crisis, and lenders there still have around 80 billion euros ($88.62 billion) on loan to the sector.

“Every bank with a significant amount of shipping loans is evaluating options to sell some of them. The ECB probe has encouraged banks even more to pursue sales,” another banking source said.

“However, it is difficult to agree with buyers on the mix of the portfolio such as performing, less performing, non-performing loans and different types of ships.”

Royal Bank of Scotland is also looking to divest its Greek ship finance business, which is worth around $3 billion, Reuters reported in June.

“It is going to become a more crowded market place and any buyers for these portfolios will want a bigger discount now,” another finance source said.

Wall Street smells desperation. The fact that DB is raising capital by offloading distressed assets is somewhat disconcerting. The stock is getting rocked, down to historic lows.

Again, $18 bill market cap with a balance sheet of $1.8 trillion. I couldn’t care less what their NPLs are. DB is a sell.

Due to an oversold signal in Exodus last week, I initiated a position in triple inverse ETF, EDZ. I made two purchases with an average cost of $31.06. The goal was to hold through 5 trading days or make 5% on the trade. The oversold stats for this signal were too good to ignore.

As the stock Gods would have it, I’ve taken my profits on this 3 day hold for a 7.1% gain. This doesn’t mean that I love stocks and feel we’re heading higher. Instead, I am merely staying true to my discipline.

I made 138bps on the trade and have placed the proceeds in cash, which currently stands at 50%.

I will be taking more of these tactical trades to boost returns.

I can’t remember the last time David Kostin from Goldman Ballsachs was right. It’s almost as if his bosses are throwing hot coffee on him, demanding that he hedge his bearish call with neutrality. Although he’s calling for a 10% drop in stocks in the near term, he believes they will race back, closing out the year at 2,100.

“Although investors appear complacent in the wake of Brexit, a maturing economic cycle with elevated valuations, decelerating buybacks, and growing political uncertainty provide the basis for potential market weakness in the second half,” the team writes. “However, above-trend U.S. GDP growth, a cautious Fed, and an earnings recovery will return the S&P 500 to 2,100 by year-end, extending the flat market of the past two years.”

Useless refuse. No balls.

I can feel your eyes rolling. I know and get it, you’re all smarter than Bill Gross, the man who made House Pimco and was at the top of the fixed income food chain for decades. But maybe, just maybe, he might be able to offer you geniuses a thing or two, in the way of advice.

Our credit-based financial system is sputtering, and risk assets are reflecting that reality even if most players (including central banks) have little clue as to how the game is played,” Gross said in his latest Investment Outlook.

Gross, who runs the Janus Global Unconstrained Bond Fund, had been one of the first advocates for hiking interest rates closer to historic norms. Likening the global financial system to a twisted game of monopoly, he lambasted Federal Reserve officials for relying too heavily on historical models such as the Taylor rule and the Phillips Curve, remarking Fed officials “worship false idols.”

Gross complained that fiscal stimulus has been nonexistent as governments focused on austerity, which has cut economic growth.

“Until governments can spend money and replace the animal spirits lacking in the private sector, then the Monopoly board and meager credit growth shrinks as a future deflationary weapon,” Gross said.

Overall, investors should not hope unrealistically for deficit spending any time soon, Gross said. “To me, that means at best, a ceiling on risk asset prices (stocks, high yield bonds, private equity, real estate) and at worst, minus signs at year’s end that force investors to abandon hope for future returns compared to historic examples.”

Gross said investors should worry, for now, about the return of one’s money, not the return on it.

“Our Monopoly-based economy requires credit creation and if it stays low, the future losers will grow in number,” Gross said.

I’ve given you little trollops a thousand warnings. When you end up in the poorhouse again, don’t come complaining to me.

Unlike yesterday’s currency inspired downgrade of NFLX by Needham, today’s downgrade at Jefferies is having an effect on the share price, currently down 3% in the pre market.

Essentially, they’re hating on the business and multiple.

“Although NFLX’s runway will span multiple years, our research suggests the domestic subscriber growth trajectory may be somewhat flatter than the market’s current expectations,” Jefferies analyst John Janedis wrote in a note to clients Wednesday.

“While Int’l will remain strong, we think the slowing U.S. market will pressure the stock’s multiple.”

Jefferies reduced the price target from $120 to $80. Apparently, they believe it’s a house of cards (sorry, I couldn’t help myself).