On my commute to work this morning, I heard the news that Valeant’s ex CEO will be testifying before congress today. He is accused of having acquired exclusive rights to several cardiac drugs and manipulating corporate transactions in order to cause the prices of the drugs to go up.
NPR elaborated that recently, numerous cases like this have come up and some analysts expect congress to make an example of this CEO.
This made me feel like it would be a good stock to short, so I wrote down the current price. I will watch this today and see how it goes!
UPDATE: 1:54PM PST, same day.
The stock finished down 3.56% from $35 when I wrote this! This would have been a good short. That puts me at 2-0 with two great predictions so far, after picking Tesla long, the day after the recent keynote. It made it up over 13% in under a week!
I think I want to pick a couple more winners before I make my first real trade. Wish me luck!
Valeant is currently down to $29. A drop of 17% since my original post. This would have been a very good short!