Valeant (VRX) is More Fraud Victim Than Fraudster
Post# of 193
Posted On: 11/28/2015 4:23:50 PM
Valeant is more Fraud Victim than Fraudster
Summary
Multiple fraud allegations against Valeant have been proven to be unsubstantiated.
Right before Thanksgiving, John Hempton moved another attack, but it appears investors don't trust him anymore.
Politicians attacking Valeant might have been motivated by personal interests as well.
While the Valeant (NYSE:VRX) saga goes into its second month, the facts behind the multiple allegations appear to become weaker and weaker. I continue to believe that once the dust will have settled, investors will rub their eyes and ask themselves how such a massive deception was possible. As I said in my first article on the matter, it appears that for some time, the media and (almost) the whole investment community has given more credit to fraudsters than to a multi-billion company that so far has never had serious legal issues (differently from most other major pharmaceutical companies).
Right before Thanksgiving, John Hempton moved another attack, but it appears investors don't trust him anymore. Nevertheless, several major media sites spread the news, putting renewed pressure on the stock. The attack was obviously timed carefully, as John Hempton speculated on traders fearing further bad press over the long weekend and selling their shares on Wednesday afternoon; but compared to last month's volatility, the stock reacted very little to the new allegations. If you read the first comments under John's post, you can also see that people are increasingly suspicious of his methods:
Continue reading: http://seekingalpha.com/article/3716196-valea...-fraudster
Summary
Multiple fraud allegations against Valeant have been proven to be unsubstantiated.
Right before Thanksgiving, John Hempton moved another attack, but it appears investors don't trust him anymore.
Politicians attacking Valeant might have been motivated by personal interests as well.
While the Valeant (NYSE:VRX) saga goes into its second month, the facts behind the multiple allegations appear to become weaker and weaker. I continue to believe that once the dust will have settled, investors will rub their eyes and ask themselves how such a massive deception was possible. As I said in my first article on the matter, it appears that for some time, the media and (almost) the whole investment community has given more credit to fraudsters than to a multi-billion company that so far has never had serious legal issues (differently from most other major pharmaceutical companies).
Right before Thanksgiving, John Hempton moved another attack, but it appears investors don't trust him anymore. Nevertheless, several major media sites spread the news, putting renewed pressure on the stock. The attack was obviously timed carefully, as John Hempton speculated on traders fearing further bad press over the long weekend and selling their shares on Wednesday afternoon; but compared to last month's volatility, the stock reacted very little to the new allegations. If you read the first comments under John's post, you can also see that people are increasingly suspicious of his methods:
Continue reading: http://seekingalpha.com/article/3716196-valea...-fraudster
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