5 ways we will be the next Enron.

Back in August... I posted this thread - http://cafepharma.com/boards/threads/major-lawsuit-filed-against-valeant-big-trouble.583961/

I had heard talk of all kinds of things in our New Jersey Office. I had access to MP, Robert in Legal & many others. I knew about Andrew Left before things went public. So I let everyone on here know that they needed to pull their stock out on August 9th due to the Geragos lawsuit and other things happening at that time. People in this thread said I was full of shit and was unreliable... (BTW, I pulled my money out of VRX) well, all I have to say is that the 10's of billions in losses stands for itself. So what now... I'll explain:

(Note, we need to take care of anything out there that we can control... obviously everything is not in our control. If there is a PR issue, we need to do as Bill Ackman wants and handle these situations significantly better.)

Here are the list of issues we need to do our best to handle and make go away:


1. So many people fired and disgruntled that may come out of the woodwork against Valeant in the coming months... hard to track all of that down. No telling what is going to happen.

2. Federal Government is digging into everything we have and questioning everyone. Once lies of testimonies conflicts with evidence this could bring Valeant down to nothingness. If the DOJ and congress openly find fraud and misconduct we will again be on a downward spiral.

3. Lawsuit from Celebrity Mark Geragos for a former employee. (This guy was Michael Jackson & Chris Brown's lawyer, with associate council that was former Hillary Clinton lawyers) The case is not closed & the council we are using is not in the same league. Do we think that Geragos is just going to go away? It is doubtful; & by himself he could blow his case up in the media to a level that we are unprepared for with everything else that is happening.

4. Investment firms that lost money creating lawsuits against Valeant on insider trader and fraudulent practices. There are many of these... There is no telling the kind of liability that we will have from these proceedings and this could force us into bankruptcy.

5. Debt so unbelievably high and a business model that is unsustainable. In 2018 we start owing payments on the massive debt that we have accrued from the aquisitiions. The entire company is unable to revenue to the levels of this debt and will have to have a fire sale for the company before bankruptcy in 2018 based on current revenue #'s and market cap of stock.

 

Man you r good.
Terrible leadership and arrogance beyond imagine. Reckless mean people. Can't wait to see fireworks.

 

With all due respect, original poster #1, you didn't give much actionable information in your August warning. This was "just" for a nuisance discrimination lawsuit, not some of the big issues that surfaced a few weeks later (huge price increases on drugs, Philidor, etc.) I am glad you are not suffering a huge loss, but it wasn't the kind of tip that would make most people cash out their entire position or 401K.

 

I can see that... But i left the information out there... You wouldnt have to look too far to figure it out without me letting specific information from private conversations out. It wasn't the fact of the lawsuit against us that started everything. We are sued by tons of people all of the time. It was who was bringing it. Mark Geragos has power unlike anyone in the courtroom. Connections to other celebrities and global media outlets. His lawsuit started the chain of events that we have seen & potentially has the power to take Valeant down if he went nationwide with his stuff. Legitimate or not.

 

Another reason, is Valeant done with the Philidor Mess....
Check out Gary Tanner and Philidor's registered PIC in Arizona...Trying to open another pharmacy in Arizona...11/18/2015



Full post coming soon


vVv

 

I think the Forsta story is interesting, but they havent been proven to br a fraud. All of the other issues in this post are legit

 

I wonder if now is a good time to grt back into vrx?

 

I hope we are going to be next Tyco not Enron. Since Covidien is doing quite ok.

 

I wouldn't mind staying either... but for us to survive, we need to pay off everyone that we have wronged (may cost a fortune to do) - get rid of any corrupt leadership. That's most everyone. Then get an honest CEO and have him reorganize and get the ship heading in the right direction. No easy task all the way around.

 

yep...and question is in case fresh mgmt, clean start etc... where where will fortune to pay fines come from with no new acquisitions?

 

Bill Ackman seems to want to buy problems as of late. Just send Pershing Square the bill

 

I just do not know why Bill Ackman would risk further losses on a company like Valeant. He doubled his position n them with so much uncertainty. Does he know something that we all don't?

 

Ackman knows he's fucked but he wants to pump the stock a bit so he can cut his losses. Pure manipulation.

Ackman's puts are at 60-70. If it hits that level expect it to melt to 0 very quickly, and Ackman will be the first to liquidate. There's no way he's letting it ride lower than that and taking the loss on the puts plus the losses on his 20M+ shares. He will dump them all in a day if he thinks it's going to drop below 60.

The big day is "Investor Day". I doubt Pearson will show his face, or he will let the others do the talking for him.

I believe Valeant is bleeding cash and soon to be bankrupt, given it's low cash and revolver draw. Also would explain any lack of material disclosures.

Expect "Investor Day" to be bullshit day, just all talk of hyping the stock without any material disclosures (ie. what today's cash balance is, or what revenue has been post-sept 30 to present).

 

I do not know how tens of millions of vrx shares can be unloaded on a moments notice without causing a freefall. If it id known that Ackman is bailing, everyone else will too.

 

I Concur. All of the rats will flee the ship when that happens and this will indeed be the pharmaceutical Enron.

 

without Phil - it - ALL we are toast . Govt will come after single reps for this mess , I mean jail time people . Providers in Mid West contacted already by state ant generals about fraud .

 

Two years ago, similar, if not lesser charges were brought upon Warner Chilcott. Today, their CEO, execs, paid doctors and even DM's have been arrested.

The fallout from this will be much worse as the conduct of Valeant is far more egregious than Warner Chilcott.

It will be wild. Get out now.

 

Ackman should bail RIGHT NOW. Almost 100. It won't get much better than that and will probably get much worse. RUN!!!!

 

Prediction: Ackman has a "December surprise" planned for approximately December 21. He desperately needs a big drama queen maneuver to raise his end-of-year stats on Pershing Square Holdings above their currently dismal -20%. Just like he tried with Herbalife at the end of 2012...

 

I was going through everything here in cp. The handful of things that are listed in this thread definitely have the ability to bring Valeant down to their knees. Best thing that we could do is pay everyone off and start fresh. Not even sure if that is a possibility. But all of these things could sink us. Just because we have a pr and legal team won't stop the media from costing us. Look at the damage of the Clinton tweet and Andrew Left. Someone tell MP to pay as many of these mother fuckers off so it 401k and stocks have a chance. It's not most people in the company's fault for what had happened.