Valeant Shares Slump

Valeant Shares Slump After Profit Misses Estimates


Valeant Shares Slump After Profit Misses Estimates

This article was rated as the article of the week (change it to month sometimes) by our readers. Let’s take a quick look at it before we move to the main story.

The following excerpt was taken out of the July 31 st 2019 Market Update (our top premium service), so while there is always the chance the market could crash in September or October, this crash/correction has to be viewed as buying opportunity.

If the market pulls back, it’s a bonus, and this is why we also adopt the stance that when the trend is up; the stronger the deviation, the better the opportunity. Strong pullbacks should be viewed as early Christmas bonuses as the trend is firmly up. Sharp pullbacks can be used to open or add to one’s current positions. Market Update July 24, 2019

If yesterday’s pullback gains traction, then embrace, for it will prove to be a buying opportunity. The best time to buy is when the trend is up, and one feels uncertainty creeping in and vice versa. When one is sure that everything is fine and the markets are destined to trend higher, then it is more likely that the opposite will come to pass. Market Insights: October Stock Market Crash Update

U.S.-listed shares of Valeant Pharmaceuticals International Inc., which is under scrutiny for business and accounting practices, tumbled 15 percent to $25 Tuesday after the company reported a lower-than-expected quarterly profit and cut its full-year earnings and revenue forecast.

The company cut its full-year earnings forecast to $6.60-$7 per share from $8.50-$9.50, and its revenue forecast to $9.9 billion-$10.1 billion from $11 billion-$11.2 billion.

Valeant’s newly appointed chief executive, Joseph Papa, said the first-quarter results reflected the impact of “significant disruption” over the past nine months.

“We have made progress toward stabilizing the organization over the past few months, and we expect to file our financial results in a timely manner going forward,” Papa said in a statement.

Net loss attributable to the company was $373.7 million, or $1.08 per share in the quarter ended March 31, compared with a profit of $97.7 million, or 28 cents per share, a year earlier. Full Story

Valeant Pharmaceuticals International (VRX) Stock Price Slumps After Profit Misses Estimates

Valeant Pharmaceuticals International Inc VRX.TO slashed its 2016 forecasts on Tuesday, as its new chief executive said he would focus on rebuilding the reputation of a “distracted organization” with a debt-loaded balance sheet. The maker of toenail fungus cream Jublia and anti-depressant drug Wellbutrin, which has faced intense scrutiny for business and accounting practices, missed first-quarter profit estimates on weakness in its dermatology business.

The Laval, Quebec-based drugmaker expects full-year adjusted earnings of $6.60-$7.00 per share, compared with its previous forecast of $8.50-$9.50, and revenue of $9.9 billion-$10.1 billion, down from $11.0 billion-$11.2 billion.

The Canadian drugmaker’s U.S.-listed shares VRX.N slumped to close down 14.6 percent to $24.64, paring earlier losses of as much as 22 percent.

“Negative external attention continues to adversely impact the business and our reputation with patients, physicians and all of you, our shareholders, as well as our distracted organization,” Chief Executive Joe Papa, who took over in May, said during a conference call with analysts.

He did not directly answer a question on whether there had been takeover offers for Valeant.

Ruane, Cunniff & Goldfarb Inc, one of Valeant’s biggest shareholders, cut its stake by more than half to 4.7 percent as of May 31, it said in a regulatory filing.

The investment firm that runs the Sequoia Fund, long known for its ties to Warren Buffett, was sued by shareholders who claim it recklessly took a huge stake in Valeant. Full Story

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