VRX的下面一步# Stock
a*1
1 楼
Can not file 10K on 4/29 because the accountant refuse to sign off, or even
worse, accountant firm simply quit. The script has been played before.
发信人: able101 (able101), 信区: Stock
标 题: VRX has more problem than just PE
发信站: BBS 未名空间站 (Thu Nov 5 13:50:31 2015, 美东)
With the stock drops like rock and earning power reducing in the future, it
is highly leveraged. The market cap is $27B while debt is $31B. The debt
will be downgraded soon and the financing cost will skyrocket. From here on,
it
will be a downward spiral.
As I have said before, this is the story of ELAN-2002 repeating. Selling
asset is the way out.
发信人: able101 (able101), 信区: Stock
标 题: History is a guide, VRX reminds me of ELN
发信站: BBS 未名空间站 (Fri Oct 30 13:16:45 2015, 美东)
Elan was an Irish biotech company. It got aggressive in accounting and
acquisition during the stock boom in 2000 and stock ran several fold to 67.
Its problem was later exposed in 2002 and company stock went downward spiral
and its survival was on the line. The stock dropped to $1.
However, it was still a solid company with solid asset, pipeline and drugs
to sell. Later, the stock bounced back to the high of $30 and was
successfully sold.
VRX is very similar to Elan in terms of product line and management behavior
. The problem is it accumulated huge amount of debt ($30B) to finance the
acquisition. When everything goes well, it is a wall street darling. However
, the debt will be a huge issue in current situation.
The upside might be 100%, but the downside can be 90% if it plays out like
ELAN. Having said that, the asset is real and the sum of part is certainly
larger than the whole. When everybody is talking about VRX bankruptcy, you
should be brave.
worse, accountant firm simply quit. The script has been played before.
发信人: able101 (able101), 信区: Stock
标 题: VRX has more problem than just PE
发信站: BBS 未名空间站 (Thu Nov 5 13:50:31 2015, 美东)
With the stock drops like rock and earning power reducing in the future, it
is highly leveraged. The market cap is $27B while debt is $31B. The debt
will be downgraded soon and the financing cost will skyrocket. From here on,
it
will be a downward spiral.
As I have said before, this is the story of ELAN-2002 repeating. Selling
asset is the way out.
发信人: able101 (able101), 信区: Stock
标 题: History is a guide, VRX reminds me of ELN
发信站: BBS 未名空间站 (Fri Oct 30 13:16:45 2015, 美东)
Elan was an Irish biotech company. It got aggressive in accounting and
acquisition during the stock boom in 2000 and stock ran several fold to 67.
Its problem was later exposed in 2002 and company stock went downward spiral
and its survival was on the line. The stock dropped to $1.
However, it was still a solid company with solid asset, pipeline and drugs
to sell. Later, the stock bounced back to the high of $30 and was
successfully sold.
VRX is very similar to Elan in terms of product line and management behavior
. The problem is it accumulated huge amount of debt ($30B) to finance the
acquisition. When everything goes well, it is a wall street darling. However
, the debt will be a huge issue in current situation.
The upside might be 100%, but the downside can be 90% if it plays out like
ELAN. Having said that, the asset is real and the sum of part is certainly
larger than the whole. When everybody is talking about VRX bankruptcy, you
should be brave.
