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Compiling comments that experts make about stocks while on public TV.

2017-09-12

Opinion for Valeant Pharmaceuticals (VRX-T)

Signal Price Bias Subject Owned
DON'T BUY $17.600 BULLISH NORTH AMERICAN - LARGE No

There is way too much debt on the balance sheet. The net debt to EBITDA is about 7X, very, very high. New management has come in, made some asset sales and paid off some debt that was coming due. The next tranche of debt is not due until 2020. However, there is very little visibility in terms of their products going forward. They are going to experience more genetic competition and pricing pressure in their dermatology division. It is hard to see how they are going to generate the necessary cash to start their debt repayments down the road.

Christine Poole
CEO & Managing Director, GlobeInvest Capital Management

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