Clearlead

Biovail: Dividend Cut, Recent Acquisition Positive for Shareholders

(a) management has cleaned/cleaning up the Melnyk problems/scandals and they have made peace, which author addressed the merits of. why mention things that occurred under Melynk that doesn't seem fair to the current management?
(b) the divy cut is positive b/c they ended the issue of it being unsustainable, and one might say now it can grow the divy in a manner that appropriately reflects growth and hopefully maintains a reasonable balance sheet..i do believe the author hit on this point enough.
(c) acquisition = growth, etc., which author also addressed.

frankly this company was a train wreck and it's making a turn around, which the author has emphasized.

but what is concerning to me is the convertible offering, and whether they can now quickly execute some more good news and acquisitions to merit this move.

yes, I am long bvf.