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VRX - Valeant Pharmaceuticals International Inc.


giofranchi
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I increased my position again. 50% at about 140ish and now another tranche at around 115ish. So I have now doubled my positions since the price drop from $240.

 

Funny the huge arbitrage between VRX on the Toronto Exchange versus NY this morning. Its the same playbook as FFH 10 years ago. Same actors: Hempton, Roddy Boyd. Who knows, they could be right this time and I lose some money here.

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Not taking anything away from their research, but it is strange that both these pieces of research about essentially the same thing came out within the same hour. Just think it's strange.

 

This has been a well orchestrated bear raid from day one.

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Ackman isn't very far away from losing close to $2 billion on this stock.  I agree that the actors orchestrating this are not always the most ethical, but Valeant should be able to easily stand on their own.  I'm curious to see what their response is. 

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This has been a well orchestrated bear raid from day one.

 

Yeah, Claire McCaskill just woke up one morning and decided to hate Valeant. I assume the shorts helped her along.

 

Anyway, I am out this morning at a big loss. I doubt they are stuffing the channel but this is definitely not cheap enough given the risk.

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Guest Grey512

Closed my short too early, missed this morning's down-move.

Congratulations to those who have stuck it out (especially if you bought puts at low implied vol earlier in the year).

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I am in for 5% of my portfolio. bought back at the same price I bought last year :D. It felt good to sit out the last 3 months

 

I need to dig deeper into the accusations, but to me it looks like even if what they allege is true, the fraud was committed by Phillidor on VRX & insurance companies. I don't see the translation to fraud at VRX except for guilt by association.

 

One thing for sure, fire fighting this in the press at this moment is going to be a nightmare for VRX. I have a feeling we will see price in 80$ range soon.

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The company will have to respond to this. It should be interesting. I am pretty sure they aren't stuffing channels and booking sales inappropriately. There could be some other issues with the relationship that don't have good optics (despite being legal) - much like the price hikes. This is my feeling, no proof. I am just acting on character judgement here between the two groups.

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Interesting to me. I may either add to my position for the first time or end up selling, as I think through everything. No need to stick to your guns upon relevant new information.

 

That said, haven't thought it all through yet. VRX is only a middle-sized position for me so I'm not too bothered either way.

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Could be fraud, but do you trust AZ Value / Citron / Roddy Boyd / Hempton's analyses after what they have put out in the past or Valeant/Pearson?

 

I could certainly be making a mistake here, but I have to act on my judgement of character and what type of people are in each of the opposing camps here.

 

Isn't there another option?  The Not Completely Sure bin (or the Too Hard bin as Charlie calls it)?  I think it could be reasonable to think that one side or the other is more "right" but for one not to be as certain as necessary about that judgment to invest either way.

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