VRX, now Canada’s largest company

vrx july 24 2015 arith.vrx july 24 2015 log

We are wrong and will continue to be wrong on VRX, Biovail just in case we forget. This company has overtaken Royal Bank and is now the biggest on the TSX. In dollar terms it is twice as high as Nortel ever was and just as then with Nortel very few people understand what they do. It is almost as if all the sales of commodity stockes are finding their way into this stock

Technically speaking we are going straight, that is vertically, up. This is where things have to exhaust themselves. Looking at it on a semi-log scale the count moves up a notch but more importantly we are hitting the trend line. These channels tend to be uncannily accurate as can be seen on the way down as well. At a p/e of 122x this stock is trading entirely on hope. Just as with Nortel we would urge you not to participate any further.