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Valeant Pharmaceuticals (VRX.TO)

BUY ON WEAKNESS
Acquiring PharmaSwiss, a private generic drug company dealing with the nervous system. Likes this. This is one of his best holdings. Exceptional management. Spiked up so would Buy when it falls back a bit.
TOP PICK
Likes the merger. Cold-blooded management that is now in place is terrific and is focused. The synergy is in place and you will see 5 new partnerships this year. They will make one sizeable acquisition also.
TOP PICK
Technically very close to breaking out. Earnings expected to grow from $0.75 to $1.40 from Dec/10 to 2011 and a further earnings growth to $2. by 2012. Significant free cash flow generator. 9% free cash flow yield. Last year produced 3/4ths of $1 billion in free cash flow. Specializing on drugs for the central nervous system.
HOLD
Chart shows a beautiful base. Stock then started an up-leg but currently ahead of ourselves as the 200-day moving average is below the stock price creating a little pull back. The base indicates there is lots of room on the upside.
HOLD
(Market Call Minute.)
DON'T BUY
This is a bigger company than Biovale used to be. Pharmaceuticals have traded radically down, reflecting problems in the industry regarding patents. Investors recognize that the development path is long and not very successful. VRX has a number of drugs that are in the market. The merger also made their pipeline larger. He is looking at the sector but not necessarily at this one.
COMMENT
(Formerly Biovale.) Got a good lift through the merger, probably because of the synergies of Biovale’s balance sheet and Valeant’s research expertise. From this point on, cost cutting potential has been priced into the stock and now need to show their product works.
BUY ON WEAKNESS
Merging with Valeant (VRX-N). Analysts recently upped targets to $35. Sold half his holdings this week because it had gone too far too fast. Likes long-term outlook. May be an opportunity to Buy on a pullback in October.
PAST TOP PICK
(A Top Pick Sept 8/09. Up 104.86%.)
SELL
Has just gone through a merger and has gone up quite sharply. Not sure what the company coming out of this looks like so he has been taking profits.
TOP PICK
Being taken over, but he likes it. Tremendous cash flows, tax benefits. It’s going further.
COMMENT
It already has moved on the takeover. Would wait to see how these 2 companies worked out but long-term this is an interesting company.
TOP PICK
Very exciting merger with Valeant (VRX-N). These 2 companies fit together wondrously and really create a major in the Canadian medical sector. Will be trading single digit multiples. Fabulous cash flows.
COMMENT
Market seems to like the merger with Valeant (VRX-N). Making a bigger company and giving a much broader pipeline. The profitable US company gets to use the Barbados tax shield. It has gone up so much it might have been overdone. Prefers others such as Extendicare (EXE.UN-T).
DON'T BUY
Performance in the last 12 months indicates they have gotten past the worst but not pleased with their past history. Not his favourite. Probably better opportunity for growth elsewhere.
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