Jump to content

Sign in to follow this  
News Feeds

When Ackman Gets A Valeant Margin Call Today, This Is What He Will Be Selling

Recommended Posts

With Valeant in free-fall this morning, collapsing well over 20% after surprising Wall Street with the magnitude of its guidance cut and its simply atrocious results now that the rollup strategy has well and truly blown up, we thought it worth revisiting just what else Bill Ackman will have left to liquidate to meet margin calls on his core biotech holding as it collapses to its lowest since 2012.

 

As Bloomberg reports, Valeant Pharmaceuticals International Inc., dropped 16 25 29 percent in early U.S. trading after giving a new sales and profit forecast for 2016.

 

The guidance is lower than predictions Valeant provided in December, then pulled last month
after the return of Chief Executive Officer Michael Pearson from a two-month medical leave. Sales for the year will be $11 billion to $11.2 billion, and adjusted earnings per share will be $9.50 to $10.50, the company said Tuesday in a statement.

 

 

 

“The challenges of the past few months are not yet behind us,” Pearson said in the statement.

 

And the result is an absolute sluaghter for longs

 

20160315_VRX5_0.jpg

 

 

 

... none of whom are bigger than Perhisng Square's Bill Ackman, who after today will have a YTD performance of worse than -25%. Furthermore, given his cost basis aroun $170, means the margin calls will slowly but surely start coming in.

 

So what will he have to liquidate to come up with the cash? Here is a list of his top holdings.

 

20160315_VRX2_0.jpg

 

 

 

And it appears he already is...

 

20160315_VRX3_0.jpg

 

 

 

Trade accordingly.

 

ackman%20bike.jpg

 

 

 

If you have any questions, ask Marc Goodman at UBS...

 

20160315_VRX6_0.jpg

 

 

 

Of course Ackman is not alone...

 

20160315_VRX7_0.jpg

 

 

 

And it's not just stockholders - as Valeant Bonds are crashing to record lows...

 

20160315_VRX8_0.jpg

 

 

 

rc.img

 

rc.img

 

rc.img

 

a2.imga2t.imgmf.gifRfLplfOnTWU

 

Continue reading...

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×

Important Information

Your Privacy Is Important To Us Learn More: Privacy Policy