Ackman bails on Valeant, losing $3 billion

Bloomberg News              Bill Ackman chief executive officer of Pershing Square Capital Management LP

Following the market's close on Monday, Pershing Square Capital Management's Bill Ackman told CNBC that the firm officially exited its position in Valeant Pharmaceuticals (VRX).

In after-hours trading Monday, it dropped nearly 10 percent further to $10.91. We make no recommendation that the securities of the companies profiled or discussed in on our website should be purchased, sold or held by investors. Kistler Tiffany Companies LLC now owns 5,567 shares of the specialty pharmaceutical company's stock valued at $137,000 after buying an additional 2,719 shares during the last quarter. The stock is now moving above its 20-Day Simple Moving Average of -17.18% with the 50-Day Simple Moving Average of -17.18 percent.

Revenues in the quarter fell 13% to $2.4 billion, versus $2.8 billion in the same quarter of 2015. Icahn last week increased his stake in Herbalife by a few hundred thousand shares, which took his stake from 24% to almost 25% in the company.

Pershing Square also invests with General Growth Properties Inc. and Restaurant Brands International Inc.

Analysts from BMO think the sale by Bill Ackman is bad news for Valeant Pharmaceuticals shareholders. Carl Domino Inc acquired a new stake in Valeant Pharmaceuticals Intl during the third quarter worth $225,000. In addition, Renaissance Technologies bought 2.91 million Valeant shares, Barclays Plc 1.31 million shares, and Millennium Management 1.25 million shares during the fourth quarter. The company priced a secondary stock offering of 30 million shares at $0.50 a share this morning. The company said on Monday that it was expanding into the home services market. (NYSE:VRX). At the time of writing, the First Call consensus price target for the company is $19.81. Monitoring the stock price relative to its moving averages may be helpful when trying to measure future share movement. During the period, Ackman supported the company's growth prospects and its intention of buying more companies to stimulate growth. The stock has returned -82.4% over the a year ago.




The stock as of last trading session moved 6.60% up from its 52 week low and was -82.81% behind its 52 week high.

"The hits just keep comin' for Valeant", Gimme Credit LLC bond analyst Vicki Bryan, who advises selling the bonds, said in a note to clients.

Currently, the company has SMA200 (200-day simple moving average) of -41.35 Percent.

In the end, you all know that I think Herbalife's settlement with the FTC and the new unproven business model it's had to implement since then is likely to cause big problems with the company's earnings expectations for the next couple years.

Related news:

Hot News

isis-killer-beheading-video-story-top Meet Gru's brother Dru in Despicable Me 3 trailer
Mar 15, 2017 - 01:17
The first one focused on Gru and wife Lucy Wilde, played by Kristen Wiig, confronting Trey Parker's character Balthazar Bratt. Even though it may be the third in the Despicable Me trilogy, Illumination has expressed no interest in ending the franchise.

isis-killer-beheading-video-story-top Packers will sign CB Davon House to one-year contract, per report
Mar 15, 2017 - 01:15
In his third year with the Packers, the one time offensive rookie of the year finished with 758 yards and three touchdowns. Elliott is the only Packers player to post a double-digit tackle total on special teams in each of the last three seasons.

United Kingdom minister tells lawmakers not to delay Brexit
Mar 15, 2017 - 01:14
The EU's Court of Auditors will determine the amount of the bill on the EU side towards the end of the two-year negotiations.

isis-killer-beheading-video-story-top Biren Singh Elected As BJP's Legislature Party Leader In Manipur
Mar 15, 2017 - 01:13
The Goa Governor has already invited the BJP-led alliance to form the government and the swearing-in is scheduled this evening. He blamed the party leaders for not moving fast and scuttling the Congress' chances of forming the government in Goa.

isis-killer-beheading-video-story-top Child in need of heart transplant escorted through storm
Mar 15, 2017 - 01:12
Road crews are preparing for the worst as a blizzard is expected to hit the region tonight and continue until Tuesday afternoon. National Weather Service storm warnings last into Tuesday night across eastern Pennsylvania.

isis-killer-beheading-video-story-top Top US attorney Bharara 'fired'
Mar 14, 2017 - 00:46
There are 93 Senate-confirmed USA attorneys appointed by the president. "I guess that's why Trump fired him", Warren added. The replacement of most, if not all, serving USA attorneys is quite customary at the start of every new administration.

isis-killer-beheading-video-story-top OPEC vs. US Oil
Mar 14, 2017 - 00:45
The nation's crude output has climbed to 9.09 million barrels a day, according to data from the Energy Information Administration. Oil steadied below $49 a barrel as USA drillers continued to boost activity, countering OPEC's efforts to drain a global glut.

isis-killer-beheading-video-story-top England will be at physical peak - Jones
Mar 14, 2017 - 00:45
Shaun Edwards was disappointed to have been accused of a rude gesture while celebrating Wales' Six Nations win over Ireland . The players have experienced that the year before so I'm sure they will cope with that.

isis-killer-beheading-video-story-top Durban pulled as 2022 Commonwealth Games host
Mar 14, 2017 - 00:43
The games were set to open on July 18, 2022, coinciding with the birthday of the late South African President, Nelson Mandela. Don't panic - the Commonwealth Games had an emergency plan in place long before Durban was dropped as the host in 2022.

isis-killer-beheading-video-story-top 3 soldiers killed as Iraqi forces battle Daesh in Mosul
Mar 14, 2017 - 00:43
Staff Major General Maan al-Saadi of the CTS said "more than a third" of west Mosul was now under the control of security forces. ISIS fighters snipe at Iraqi forces who are pushing into Mosul's Old City, which is one of the extremists' last strongholds.

isis-killer-beheading-video-story-top Department store chain Gordmans files for bankruptcy, plans to liquidate
Mar 14, 2017 - 00:43
The Company, which is engaged in the retail sale of apparel, home goods and other merchandise, is represented by Jeffrey T. One of two Topeka Radio Shack stores closed Sunday even as Gordmans department store filed bankruptcy Monday morning.

isis-killer-beheading-video-story-top Houston Texans trade quarterback Brock Osweiler to Cleveland
Mar 13, 2017 - 01:28
Now the Houston Chronicles John McClain is reporting that the Texans did NOT trade Osweiler to get Romo. The main target for them will be the unsettled Tony Romo , who they wanted for a long time.

isis-killer-beheading-video-story-top Barcelona, Real Madrid to play Miami 'Clasico'
Mar 13, 2017 - 01:27
BARCELONA and Real Madrid will meet in the El Clasico when Miami's Hard Rock Stadium host the Spanish giants on July 29. After several more weeks of calls and negotiations, they reached a deal.

Brave Wales rise to the occasion for Howley
Mar 13, 2017 - 01:24
They wanted to go out in front of the best supporters in world rugby and give a performance they could be proud of and they certainly did that. "It will be a huge game".

isis-killer-beheading-video-story-top Hadwin grabs four-shot lead at Valspar
Mar 13, 2017 - 01:24
The former No. 1-ranked amateur made his first PGA Tour start since November 2014 at the AT&T Pebble Beach Pro-Am last month. Best of the rest: No one came within three shots of Finau, but Bozzelli's 4-under 67 earned him a career-best finish on Tour.