Quick Win by the Algorithm: VRX Rebounding

Quick Win By The Algorithm

On May 7, 2017 the I Know First algorithm issued a bullish forecast for Valeant Pharmaceuticals International, Inc. (NYSE: VRX). VRX had a signal of 84.91 and a predictability of 0.23. As a result, in accordance with the forecast, the company’s stock increased by 37.04% within 3 days, showing a quick win by the algorithm.


Quick Win


Valeant Pharmaceuticals International, Inc. engages in the development, manufacture, and market of a broad range of pharmaceutical products in the areas of dermatology, gastrointestinal disorders, eye health, neurology and branded generics. It operates through the following segments: The Bausch + Lomb/International, The Branded Rx, and The U.S. Diversified products. The company was founded on March 29, 1994 and is headquartered in Laval, Canada.


It’s fair to say that it has been a tumultuous last couple of years for Valeant. In July 2015, at its peak, the stock was at a whopping $257 per share. Fast forward to now, the stock is trading at a little over $14 a share.

Valeant has recently raised its Earnings Before Interest Tax Depreciation Amortization (EBITDA) from$3.55 – $3.7 billion to $3.6 – $3.75 billion . The average selling price in dermatology combined with solid growth in Asia by 11% helped improve Valeant’s income statement. To date, the company has paid over $3.6 billion in debt since the first quarter of 2016. With $1.3 billion of that debt, paid in the first quarter of 2017.

Valeant decreased its debt to $28.9 billion and convert a significant amount of debt from floating to a fixed rate. The real surprise came, as Valeant reported $1.80 EPS. A complete contrast to last year, when they reported a loss of $1.08 EPS. Pending FDA approval, Valeant have a few new products in the pipeline that could help increase its market share, making the future not all bleak.

This bullish forecast on VRX was sent to current I Know First subscribers on May 7th, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.

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