Quote:
buddy is pushing me to buy some vrx. thoughts?
Quote:
something about fda approving some drug and hype around it. not really sure but this guy kills it (or at least appears to) and I told him to let me know next time he made a big bet on something.he picked it up at 16 and still holding.
VRX is down a lot today thanks to two downgrades. One is Piper Jaffray, who says:
Quote:
Shares of Valeant Pharmaceuticals have more than doubled since the April 2017 low of under $9, Piper Jaffray analyst David Amsellem tells investors in a research note. The rally has little to do with underlying fundamentals, and much more to do with perceptions surrounding liquidity bankruptcy risk, the analyst contends. After looking at the underlying dynamics of Valeant's segments, Amsellem says, "It is clear to us that little has changed." Further, he does not believe new product launches are significant enough to drive sustainable EBITDA growth. The analyst continues to believe that loss of exclusivities and payer pressures will continue to be headwinds. The current valuation "does not make sense to us," Amsellem concludes. He keeps an Underweight rating on Valeant with a $12 price target.
The other is Goldman Sachs who initiated at sell with an $18 target.
Their points are solid and it's not a great bet. I hope you didn't listen to your friend.