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Valeant Pharmaceuticals (VRX.TO)

DON'T BUY
Has not been a fan of this one for many years. Current and past fundamentals have been very sketchy. Much more volatile and a higher risk than they US large pharmas.
SELL
Dividend will be at risk. Doesn't have much in the pipeline. Not sure where the growth is going to come from.
HOLD
Can't remember when this company ever had any good news. Has a negative earnings revision. His model price is $32.85, an 81% positive differential.
TOP PICK
8% dividend. Good free cash flow numbers. Everyone hates the stock, so it is a true contrarian play. Trades at about 15 X earnings. The biggest risk is generics. The Wellbutin brand they own is being attacked. Have 10 new drugs coming on line.
COMMENT
With the change in dividend policy and the new CEO and the professional management, it is a different story than what it was 5 years ago. Fell off the cliff because of further generic erosion of its Wellbutrin. Going into erectile dysfunction now. Considering selling his holdings.
COMMENT
Has been a very frustrating stock. Not sure what is going to drive the stock going forward.
COMMENT
Has a long trading zone from $17-$28. Volume is shrinking which usually indicates the stock is going to make a move. Suspects it will make a move to the upside.
DON'T BUY
Over 6% dividend because the company has changed from a growth story to almost like a utility. Relying on its existing drugs, which will eventually be supplanted by new drugs.
BUY
41% positive differential. They have a hefty dividend and positive earnings. What it needs is some positive news. A good defensive hold. Not much downside. It's in their top 10.
COMMENT
Has been a very challenging company. In the past, earnings have been somewhat suspect. Generics have been a problem. Quite volatile. Could see a dividend cut.
DON'T BUY
He owns, but has been selling it, because the stock has not been doing what he wanted it to do. Pays a 7% dividend, so you would think it would do better when the market is weak, with investors looking for yield.
DON'T BUY
Paying off their long-term debt. The new operational management seems to be doing a good job. Settled their suits with the generics. Cleared off the US sales force. You can buy world-class pharmaceutical companies without all the problems they have.
DON'T BUY
A lot of the zip has gone out of it.
SELL
Recently sold his holdings at about $24. Their biggest drug, Welbutrin, is facing genericization very shortly.
DON'T BUY
Obviously a company in transition. Change in management. Expect it to be slower growth. Can't see any compelling reason to own it.
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