Valeant Pharmaceuticals Intl Inc (NYSE: VRX)
Valeant Pharmaceuticals was off to a relatively normal day in the market. While the stock was in the red, it wasn’t by much. Nonetheless, minutes ago, the stock started to spike in a big way. Below, we’ll talk about what we’re seeing in the market, why, and what we’ll be watching for with regard to VRX ahead.
As mentioned above, Valeant Pharmaceuticals wasn’t off to the best of days in the market today. Following up on recent declines, the stock was in the red, but not by much. However, minutes ago, we saw a spike that sent it well into the green. Currently (11:14), VRX is trading at $17.96 per share after a gain of $0.41 per share (2.34%) thus far today.
Why The Stock Is Spiking
As soon as we noticed the pop on VRX, the CNA Finance team went to work to see what was causing the gains. At the moment, there is no fundamental news that has been released by the company, nor rumors on social media. However, we did note a release in which BMO Capital reiterated its market perform rating. While this isn’t huge news, for a stock that has been through the ringer recently, this is enough to rally the troops for a short-term run on Valeant Pharmaceuticals.
What We’ll Be Watching For Ahead
First and foremost, keep in mind that there was no big news that caused the spike. As a result it is likely to be incredibly short-lived. Unfortunately, when it comes to VRX, we aren’t looking for much in the way of positivity. At the end of the day, the company is reeling as a result of the Philidor Scandal. This will likely take years to recover from, and in the mean time, the risks in getting involved are incredibly hgih. Nonetheless, in the long run, it is incredibly likely that we see a full recovery.
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!
[Image Courtesy of Wikimedia]