What Pushed Valeant Pharmaceuticals (NYSE: VRX) Stock to Finally Collapse Yesterday
October 22, 2015 at 05:00 AM EDT
On October 4 , I singled out Valeant Pharmaceuticals as a deeply troubled company, one that was emblematic of just about everything that's corrupt and toxic in today's markets. The hedge funds loved Valeant thanks to its practice of buying other drug companies using junk bond financing, firing most of their employees - and then sharply hiking the prices of the drugs to which they'd just acquired the rights. That's an ugly business model. It came into sharp focus in September when Turing Pharmaceuticals' Martin Shkreli bragged about hiking the price of a vital drug essentially just because he could, bringing a ton of bricks in public and political wrath down on the industry's collective head. Now, I expected VRX shares to plunge, but that ton of bricks landed harder and faster than I thought. And wave after wave of bad news - now including allegations of outright criminal behavior - brought the shares down 40% in one morning , from $148 to below $89 yesterday. The shares eventually rebounded to $118, but not for any good reason. As you're about to see, for as far as its fallen already, this rotten company could fall a lot farther before it finally craters... Tags: Valeant collapse , Valeant Pharmaceuticals Stock , Valeant stock , VRX , VRX stock To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2015 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post What Pushed Valeant Pharmaceuticals (NYSE: VRX) Stock to Finally Collapse Yesterday appeared first on Money Morning - We Make Investing Profitable .