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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I accumulated a double position in Valeant over the last months. I average about 131 and now it's 144. Last week the stock went up (apparently) due to Valeant reporting that they do have organic growth. Plus, the chief executive and founder of ValueAct Capital Management, is joining the board. Organic growth has been a concern and so, with this out of the way, I see Valeant as being a far less risky investment and am now considering holding this for over a year, as opposed to a short term trade. What do you think?
Read Answer Asked by Matt on September 29, 2014
Q: Valeant continues to struggle and its on going battle with Allergen doesn't seem to be going anywhere. You have mentioned previously that even if the Allergen deal goes through, the new company will be risky given the debt load. As I already down on this stock, would now be a good time to sell and purchase Concordia or Knight since the risk profiles may not end up being that different?

Thanks for the superb service.

Paul F.
Read Answer Asked by Paul on July 22, 2014
Q: David Maris of BMO is quoted as saying:
"As of now, we think the Valeant bid stands at a less than 50% probability of being successful, and we base this on our belief that the cost cuts announced are not credible.” There's also discussion about an Allergan golf course in California that may or may not exist (how could such a thing be hidden from public view?). This is the same guy who exposed Biovail's contorted explanation as to why they missed earnings, so he would seem to have some credibility. Also Bill Acker's past record on acquisitions is far from perfect.

I still hold VRX from the 2012-13 model portfolio. Would it be better to stand aside with this latest revelation? Thanks, J.
Read Answer Asked by Jeff on May 04, 2014
Q: Hello 5i team,
Valeant and Pershing Square have made a hostile bid for Allergan. Both the buyer's and the seller's prices are up this morning. But isn't it as likely that Valeant/Pershing-Square will need to sweeten their offer - in which case, why is Valeant up? I had thought that, in general, acquirers' near-term valuations went down (in anticipation of the depletion of treasury and/or dilution of equity.)
Read Answer Asked by John on April 22, 2014
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