Valeant? VRX

Another new 52-week low for VRX today, closing down 4.17% to $8.51, with an intraday low of $8.36.

Apart from the (already known) debt issues, a possible reason for today's decline is another lukewarm analyst note about the stock:

http://blogs.barrons.com/stockstowatchtoday/2017/04/21/valeant-pharmaceuticals-not-worth-the-risk/

and maybe also Jim Cramer's negative view of the stock:
https://www.thestreet.com/story/14096954/1/jim-cramer-valeant-s-not-worth-the-speculation.html

VRX is scheduled to report financial results on Tuesday, May 9, 2017. Most likely before the open.
http://ir.valeant.com/news-releases/2017/04-10-2017-215957710

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"Valeant Pharmaceuticals Q1 top line off 11%; earnings up 269%; cash flow up 71%; guidance raised; shares ahead 12% premarket"
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This thing has burned so many longs that I want to be cautious here....BUT....it looks like VRX is stabilizing and slowly becoming investible once again.
 
I bought a couple hundred shares a few weeks ago for a little under $10. The way I see it, it is either worth next to nothing or could be worth $50+...even if the probability of going to zero is higher, I'd say odds are the reward potential outweighs the risk.
 
FCXoptions said:
The way I see it, it is either worth next to nothing or could be worth $50+...even if the probability of going to zero is higher, I'd say odds are the reward potential outweighs the risk.
More...

Yeah, seems like one of those heads I win big, tails I don't lose much type of bets.

Also, Goldman upgraded their commercial paper prior to these latest earnings, so it seems that they at least believe there is enough positive going on to keep the bills paid at VRX.

Interestingly from today's earnings, Salix/Derm/Xifaxin all showed sequential rev drops, but not nearly to the extent that some of these research articles were predicting - if Joe Papa can really stabilize these lines without much in the way of divestitures, there really is a path to $40 per share, and it may come a lot quicker than people expect.

Definitely still in the early innings and the earnings show there is a lot of work still to be done, but in my opinion, a clear pathway has been shown, now management needs to execute.
 
This is one of those situations where i want to buy more, but I'm a bit hesitant still. I wasn't expecting it to keep running three days straight either. I think the potential is there though. Crazy the amounts some of these hedge funds had previously invested is now enough to basically buy the whole company.
 
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