VRX, Valeant Pharma update

vrx aug 2011

On July the 16th it was our opinion that this stock would not exceed $55, it was only a few dollars away from that.  So far it is down $14 from the high of $54+, or about 26%.

To some this might come as a surprise, it shouldn’t. This invariable happens when stocks that were previously shunned and then become darlings go meteoric. Even more so when the largest house in Canada puts it in the top-pick / focus-list category. This ensures that 1400 brokers and quite a number of funds and the even larger number of copy-cat funds are loaded up on the stuff. Nothing needs to go wrong with the stock but at some point the air-pocket will be hit. This one is going lower.