July 20, 2016

Valeant stock is a value trap

I would continue to avoid Valeant Pharmaceuticals ( VRX) .

As I initially wrote in early May and expanded upon one week later, I've concluded that prospects for VRX's profits and stock price remain highly uncertain.

The bottom line: I don't think you should fish in Valeant's pond -- even as a trade. To me, VRX is a "value trap."

Position: None