Valeant Pharmaceuticals (VRX.TO, VRX)
i can't believe there's no existing thread on this formerly canadian pharma. But i searched & there wasn't.
does anybody hold this ? i've held vrx since its previous biovail incarnation. Stk has gone to the moon. From 11-12 to north of 60. Every year i sell 200-300 shares, then buy em back in a campaign to gradually increase the cost base ... so that capital gains arising from an eventual disposition will not be too painful.
co is long past its old biovail welbutrin days, now focuses on neurological products, pipeline is promising but earnings nowhere support share price. There are analysts who won't touch VRX because they see a funny story, funny as in bizarre, distorted & possibly alarming.
some class vrx as a canadian pharma but it is not. The overtaking company in the alleged "merger" of biovail & US valeant was valeant, by far the bigger of the 2 & a relentless acquisition addict. Valeant took over toronto's sleepy biovail because it wanted to acquire - for corporate taxation purposes - biovail's nominal offshore head office in bermuda.
We own this stock and its had a great run and up to new 52 week highs today!!
Up 4% this morning on another aquisition. Still holding and still smiling.
still holding here but it's too good to be true.
Originally Posted by Ihatetaxes
let's list the cons:
- PE north of 250.
- stories about cowboy acquisition strategy usually do not work out well in long run because cowboys are not good at running a peaceful & productive pharm
seasonallity of stock will run out of steam after week 16
free monthly & weekly seasonality power bar @ blashing.com has the stock running ot of strong seasonality just after week 16
wolf something practical would be nice not latest oracular utterances from zarathrustra
back to basics, does anybody know what could be wrong w valeant, aka why we should sell now while stk is sky-high?
apart from the fact that the american CEO of VRX is seriously overweight which was a reason i got out of RIM/RIMM when i saw what was happening quite long time ago to plumpie puffster mike lazarides.
Seems like all the aquisitions are derm and athetics, drug classes not as controlled by our lovely government and an area of growth for GP's looking to increase income with patient paid drugs. Also good area of growth with aging weathy boomers who want wrinkles reduced and have the cash to pay $700 every two months for injections into their faces.
As for a fat CEO I never trust a skinny chef and maybe that can apply to CEO as well.
taxes this stock was $11-12 not that long ago, back in the biovail day. There has to be something going on with this story. Stocks don't go to the moon like this for no reason.
maybe VRX does have good prospective market of rich boomers who'll personally pay for anti-ageing maybe even anti-alzheimers products that health care systems won't pay for. Maybe VRX is about to buy bausch & lomb. Goody for them. But i still don't see how the fundamentals are justifying this moon rocket.
hmmnn the real story might be one of manipulation ... no sign of this yet ... but i'll be looking out for a good story ...
Up another $6 this morning...