SHORT SELLER: Here's why pharmaceutical company Valeant looks like Enron
Valeant Pharmaceuticals is being accused of an Enron-like fraud.
Short selling firm Citron Research released a report highlighting its mysterious relationship with Philidor, a pharmacy that distributes drugs for specialty pharmacies, which it has the option to purchase.
After the report was released the stock fell as much as 29%.
Citron says that Valeant has been using its relationship with Philidor to file fake invoices and make its revenue appear greater than it is. Valeant is Philidor's only customer, Citron points out.
mikeon88 發表於 2015-10-22 01:28
mikeon88 發表於 2015-10-22 21:52
mikeon88 發表於 2015-10-30 21:56
mikeon88 發表於 2015-10-31 10:55
mikeon88 發表於 2015-10-31 15:24
Valeant Pharmaceuticals (VRX) Bull-Bear Debate Rages
The bull-bear battle in beaten up and highly-questioned Valeant Pharma (NYSE: VRX) took center stage again today. Bill Ackman from Pershing Square on the bull side and Andrew Left from Citron Research on the bear side. Currently the bears are winning and the stock is down another 10% today and again below the $100 level.
This morning the company announced that it is severing all ties with Philidor Rx and Philidor has informed Valeant that it will shut down operations as soon as possible. Valeant's controversial relationship with Philidor has been at the center of the short attacks, which have alleged deception, channel stuffing and possible fraud.
Bill Ackman ... highlighted that excluding Philidor-related earnings, the stock trades at less than 8x 2016 cash EPS. He made the case that the stock is worth $180-$240 near-term and $262-$350 longer-term.
joe (宥聰) 發表於 2015-10-31 15:44
mikeon88 發表於 2015-10-31 15:44
mikeon88 發表於 2015-11-6 06:34
Shares of Valeant Pharmaceuticals Intl Inc (NYSE: VRX) fell 6 percent on Wednesday and remain within striking distance of its 52-week low of $88.50.
Activist investor and Valeant shareholder Bill Ackman wrote a letter to Valeant's CEO saying his reputation is "at grave risk" and the company has "become toxic."
The Wall Street Journal noted Ackman's hedge fund has lost nearly $2 billion.
Investors have every right to remain concerned over Citron Research's allegations that Valeant is the Enron of pharmaceuticals through the creation of a network of undisclosed entities in order to alter financial results.
One of the very concerns investors is Bill Ackman whose hedge fund, Pershing Square, has already lost almost $2 billion, according to . Ackman wrote a letter on Tuesday to Valeant CEO Mike Pearson and said his "reputation is at grave risk" and the company has "become toxic." He added that "even we are very concerned."
Related Link: Citron Research Says It Will Not 'Dial Back Warnings' Regarding Valeant
WSJ noted that Pershing Square's assets has fallen by about $4 billion in value since Valeant's stock peaked in August. Pershing Square's four funds have now lost 16 percent this year, after returning 40 percent last year.
Ackman told Valeant that "management needs to come clean" and to hold a press conference immediately in order to "lay out everything you know." The company ultimately decided against holding a press conference, a move that irked Ackman who then phoned the company's lead director, Robert Ingram, and said "if Mike [Pearson] hides in the bunker on this, he can't be CEO."
Ackman bought a 5.7 percent stake in Valeant, valued at around $3.8 billion, last March. At that time, the stake represented around 20 percent of Pershing Square's total portfolio. He added two million shares to the portfolio on October 21 at the height of the accusation against the company as there were only two options available: "sell everything if there's material fraud because the shares will go to zero, or buy now while the stock is a bargain."
mikeon88 發表於 2015-11-6 06:36
mikeon88 發表於 2015-11-6 07:31
mikeon88 發表於 2016-3-15 22:52