VRX rebound?

I’ve been wanting to properly ‘present’ VRX to this board as it may be a stock that fits being a value for it’s growth. I did a quick 1YPEG ratio and it was quite good and they have solid quarterly earnings.
Just thought while I’m reviewing more closely I’d let you know it could be an opportunity (and of course it may not).

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I did alot more digging into this one and summary is NOT worth the risk at this time. Too many problems going on with VRX. I started doing a formal template of presenting this company, but the more I read the less I wanted to do more analysis. Here is quick summary thought to just finish it off.

Valeant Pharmaceuticals International Inc (VRX) - An Evaluation

Who is VRX?
Valeant Pharmaceuticals International, Inc. is a Canadian based company that serves the following geographic regions: United States, Canada, Asia Pacific, Latin America, Europe, the Middle East and Africa. Each of these regions has a different focus for their distinct markets and each market has a unique mix of prescription brands, branded generics and over-the-counter (OTC) consumer products. They are a multinational specialty pharmaceutical company that develops and markets prescription and non-prescription pharmaceutical products that make a meaningful difference in patients’ lives. The company’s growth strategy is to acquire, develop and commercialize new products through strategic partnerships, and strategically expand its pipeline by adding new compounds or products through product or company acquisitions.

Thought they were just the victim of a short attack last October.


However, VRX ended up cutting all ties with the pharmacy in Pennsylvania that was causing accusations of financial irregularities in their revenue recognition. This pharmacy was 7% of VRX’s revenue.

They had a small bounce in December due to an agreement with Walgreens. However, the CEO was hospitalized in late December with pneumonia and they had an interim CEO thru end of Feb.

Then in March they adjusted their 2016 EPS down from $10 from previous $13.50 per share guidance. They also announced they are looking for a new CEO.

The reason for the big pop up yesterday was their internal Ad-Hoc Committee finished a multi-month review of the pharmacy accounting and found no changes needed to what was already disclosed.

I think this one has a low YPEG for very good reasons and are not growing to warrant the risk. I didn’t even recalculate with the correction today as I have lost interest. Sorry I brought it up.