VRX - time to buy ?

syswizard · May 6, 2016

Ackman's now in control with a new board and new CEO.
The other day, VRX fell to 28, but that lasted a nanosecond and it bounced right back up over 30.
I think it's a steal down here at 30.
In fact the entire biotech sector is now looking cheap.....relative to 6 months ago.

S2007S · May 6, 2016

syswizard said:
Ackman's now in control with a new board and new CEO.
The other day, VRX fell to 28, but that lasted a nanosecond and it bounced right back up over 30.
I think it's a steal down here at 30.
In fact the entire biotech sector is now looking cheap.....relative to 6 months ago.

Biotech has been in a bull market for years now....I wouldn't doubt the next bear market dropping the biotech sector by at least 50%

Martinghoul · May 6, 2016

Is Ackman in control a good thing? Just wonderin'...

syswizard · May 6, 2016

Martinghoul said:
Is Ackman in control a good thing? Just wonderin'...

You bet....previously, a criminal was in charge....

Martinghoul · May 6, 2016

syswizard said:
You bet....previously, a criminal was in charge....

Ingram was a criminal?

zdreg · May 6, 2016

do you want to deal with 30 billion in debt? would someone explain why the co. is not in a death spiral?

Martinghoul · May 6, 2016

zdreg said:
do you want to deal with 30 billion in debt? would someone explain why the co. is not in a death spiral?

Who says it isn't?

syswizard · May 6, 2016

Debt-Schmedt.....Doesn't matter. I think Uber is about 30 billion in debt and they're going IPO soon.
Debt is cheap.

syswizard · May 6, 2016

Martinghoul said:
Ingram was a criminal?

My bad...I was thinking of
Martin Shkreli
of KaleBios infamy.
Still....I heard the former CEO was not that good.

Daal · May 6, 2016

One thing is for sure, VRX is a bad short. Debt and non-GAAP metrics such as "cash EPS" are things that other stocks in the industry also have but they are at a much bigger valuations. If shorts are right on VRX, they make 100% but if they are wrong, they lose 100-300%.