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  • What The SEC Should Ask Valeant; Allergan Investors Should Watch Out [View article]
    Uncommon,

    Your quote, "Their main positions when Ruane was around were great organic growers like FAST, EXPD, TJX, Progressive Insurance, etc."

    Although this is accurate that these companies were big holdings and have done well and grew organically, this is a very misleading comment. Here's a few other important holdings through the years:

    Berkshire Hathaway (I believe a favorite of yours?)
    Capital Cities
    Hasbro

    These were all highly acquisitive companies that they held VERY large positions (25+% for the first two) in their portfolio for a decade-plus.
    Jul 23, 2014. 11:33 PM | Likes Like |Link to Comment
  • What The SEC Should Ask Valeant; Allergan Investors Should Watch Out [View article]
    Wow Jack Linn, that's quite the view. I feel bad for anyone that has such a pessimistic view on the world. Here is the first known period of these investors owning VRX (some much earlier than stated below, I'm doing this on the fly):

    Sequoia: 9/30/10
    SQ Advisors: 6/30/12
    Brave Warrior: 3/31/11
    Valueact: 12/31/10
    Ratan Capital: 12/31/12
    Weitz: 9/30/11

    So .. I'm not sure when you think this Allergan news came out, but I'm quite positive it was well after any of these investors owned shares.
    Jul 23, 2014. 11:20 PM | Likes Like |Link to Comment
  • What The SEC Should Ask Valeant; Allergan Investors Should Watch Out [View article]
    Nowhere in there did you convince me that Pyott is not a weak, malleable, and overpaid CEO. If this was not in the best interest of shareholders, he would have blatantly made that clear by now. But that's hard for him to do, because he doesn't really truly care about shareholders, he cares about his job. Here's what's going through Pyott's head right now - "Oh, someone wants to take my $20 million/year job away? Great, I'll just do whatever they tell me to do, even if it hurts all stakeholders but myself." If a CEO's only tactic to "keep them away" is to either a) do something they should have done a long time ago to create value for shareholders, or b) do something that hurts shareholders with the intent to "deceive them for the benefit of the long term," they are not good CEO's. But most aren't, Pyott has simply proven he's just like the other 90% of CEO's that have been savvy in office politics but are poor at allocating capital.
    Jul 22, 2014. 10:54 PM | 1 Like Like |Link to Comment
  • What The SEC Should Ask Valeant; Allergan Investors Should Watch Out [View article]
    Uncommon, you are contradicting yourself here. You say that their stock picking is mediocre and that it was better with Ruane, but then you say that their portfolio is largely the same as when Ruane was there. If you know anything about Sequoia, you know two things; they invest big in very few companies, and they hold for a VERY long time. So essentially, their one stock pick since Ruane has been Valeant, which is up 500% since they bought it (that's mediocre? hmm....). The fund would most likely largely look the same if Ruane was still around, as they have never been active traders. If you think the fund never had periods of lagging the market when Ruane was around, you need to visit their website for about 5 minutes and check out their yearly returns. Oh, and they've beat the total stock market in 5 of the past 7 years, while averaging about 20% cash.
    Jul 22, 2014. 09:40 PM | 1 Like Like |Link to Comment
  • What The SEC Should Ask Valeant; Allergan Investors Should Watch Out [View article]
    idkmybffjill, Lou Simpson's fund is called SQ Advisors.
    Jul 22, 2014. 08:51 PM | Likes Like |Link to Comment
  • What The SEC Should Ask Valeant; Allergan Investors Should Watch Out [View article]
    Wait a minute here. After all this debate about how amazing Allergan's R&D is; after all this fluff about how keeping their R&D is for the betterment of the company, society, and science; after all the talk about how superior Allergan's process and people are; after all this talk about how Valeant's business model of cutting R&D is unsustainable; and after Pyott paid a pretty penny of Allergan shareholder dollars defending itself against cutting R&D, they're going to cut 650 R&D jobs???!!? So was he wrong, and were they bloated with R&D? Or is this just a diversion at the expense of 1500 people's jobs? Either way, Pyott fails. Regardless of whether or not Valeant makes this acquisition, Pyott lost; he's shown he's content not to stir the pot to collect his 8-figure paycheck (at the expense of shareholders) until he's forced to do something (at the expense of workers and shareholders). He's not concerned about the company or people or shareholders or "sustainability," he's clearly shown all he's worried about is sitting in his tower and collecting his big fat check.
    Jul 22, 2014. 08:49 PM | 1 Like Like |Link to Comment
  • Who Is Telling The Truth On Fillers: Valeant's CEO Or Allergan's CEO? Is Valeant's Debt A Time-Bomb? [View article]
    Another very entertaining article. Keep up the good work.
    Jun 24, 2014. 04:07 PM | Likes Like |Link to Comment
  • Who Is Telling The Truth On Fillers: Valeant's CEO Or Allergan's CEO? Is Valeant's Debt A Time-Bomb? [View article]
    Clineff, you're going to need to look at those numbers a little closer. Valeant's 2011 Net Income of $160mm was due to a tax credit, not despite a 'low tax debit' as your "even with their lower tax rate" comment implies (i.e. they had an operating profit of $300mm, an interest expense deduction of $333mm, "other" income addition of $15mm, which brings their pre-tax profit/loss to negative $18mm; the tax credit of $178mm brings their GAAP net income to $160mm). Further, your "Net Cash Flow" numbers are actually the ending balance sheet cash numbers. So I'm not sure what your definition of Net Cash Flow is (operating cash flow, free cash flow, or some other cash flow measure; and then how do you define that particular cash flow as Net Cash Flow), but whatever that is, you should restate your comment with correct numbers.
    Jun 24, 2014. 03:05 PM | Likes Like |Link to Comment
  • Valeant Bulls Don't Understand This Accounting Trick, Allergan Shareholders Need To; A Tutorial On Capitalizing Vs. Expensing [View article]
    Mr. Smith, you are an intelligent, talented, well respected portfolio manager that runs the show on more than $50mm (probably much more, that's just what I can see in plain sight), therefore I know I don't have to explain the difference between 'zero debt' and 'net cash position.' So to answer your question, no, I absolutely do not believe Mr. Hamburg is unsophisticated, and indeed, quite the opposite.
    Jun 6, 2014. 08:47 PM | Likes Like |Link to Comment
  • Valeant Bulls Don't Understand This Accounting Trick, Allergan Shareholders Need To; A Tutorial On Capitalizing Vs. Expensing [View article]
    Allergan is not debt-free, they have $2 billion of long-term debt on their balance sheet as of their last quarterly report. However, this is a good thing. For the vast majority of circumstances, if you show me a company that has zero debt, I'll show you a company with an unsophisticated CFO producing inefficient returns on capital. Debt should not be demonized.
    Jun 4, 2014. 09:36 PM | Likes Like |Link to Comment
  • Major Valeant Shareholder Selling Most Of Its Stake [View article]
    Its simple, they invest in companies/assets with products that are in late stage which have a higher probability of producing actual sales, as opposed to throwing money away on early stage gambles. They are then making more per dollar of input than most others.

    Inflated? You sound like you must have a background in the field, are you a doctor or a healthcare analyst?
    May 10, 2014. 10:48 AM | Likes Like |Link to Comment
  • Major Valeant Shareholder Selling Most Of Its Stake [View article]
    Your hatred for this company is comical.
    May 9, 2014. 07:37 PM | Likes Like |Link to Comment
  • Valeant Skating On Thin Ice - Allergan Is Much Stronger And Deserves Better [View article]
    Overpays, huh? Last time I checked, everyone was upset that they're not paying enough for AGN. Pearson has walked away from numerous deals where someone else stepped in to pay more. Overvalued? Hmm, a forward PE of 12 doesn't seem too outta whack, but that's just my opinion.

    "Take away the low tax and cheap debt ... blah blah ... " Here's the thing, they DO have a low tax rate, which was put together by Pearson, and saves them real cash. If achieving tax inversion was so simple, why haven't we seen a rush of other companies taking advantage of this strategy? And they DO have cheap debt, which is also real, and has generated real net cash for the company.

    JDSU, Global Crossing, and Iridium were all technology firms, and technology moves fast. Valeant is in the slow moving part of healthcare, which has products that, at worst, will produce a company-wide organic decline of 5% per year, not change overnight. And to stick on that topic, lets say their organic growth DOES continue to decline .. who cares? Pearson will continue to make acquisitions to generate more cash and increase the value of the company. Does slashing R&D spending hurt the betterment of society? Probably. But I don't invest to feel warm and fuzzy, I invest to make money, which cutting R&D spending at Valeant does for me, as a Valeant shareholder.

    Lampert didn't understand what it took to run a large retail store, Pearson has been in healthcare for decades.

    Is Valeant set up to be a 100 year old company? Absolutely not. But while Pearson is there, making the calls on capital allocation, it will continue to grow in value.
    May 1, 2014. 07:54 PM | Likes Like |Link to Comment
  • Valeant Skating On Thin Ice - Allergan Is Much Stronger And Deserves Better [View article]
    I love when people hate what is hard to understand. I love reading articles bearish on my long positions that point out nothing more than I already know. Pearson is a very smart man, and whether this deal with Allergen goes through or not, Valeant will continue to increase per share value at a faster pace than the market. Pearson won't overpay for assets - like Buffett - which is why Valeant didn't acquire Cephalon and Actavis, not because it was "rejected."
    Apr 28, 2014. 10:53 PM | 1 Like Like |Link to Comment
  • Amsurg: The Screens Sometimes Get You [View article]
    Great article. Thank you for pointing this out. I would have run across it myself at some point, but you saved me a ton of time. Thank you again.
    Jan 4, 2014. 06:36 PM | Likes Like |Link to Comment
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