Crista Huff

Stocks in the News is produced by Ransom Notes Radio and Goodfellow, LLC. Crista Huff manages Goodfellow LLC, a website that recommends outperforming stocks using fundamental and technical analysis.   

Stock number one is: 

Valeant Pharmaceuticals International Inc. , (SYMBOL: VRX) and the headline says:

Valeant’s Bausch & Lomb Buy Another Debt-Fueled Deal – The Wall Street Journal

Valeant Pharmaceuticals, Canada’s largest drugmaker, has agreed to buy privately-held eye-care company Bausch & Lomb Holdings Inc. for $8.7 billion.  The deal will be financed by the issuance of new equity and debt.  Valeant’s long-term debt ratio was already high at 56%.

Valeant is a rapidly growing specialty drugmaker, in the areas of dermatology, neurology and ophthalmology.

On April 29, we recommended that investors buy Valeant Pharmaceuticals, and the stock has since risen 21%.  Despite projected earnings growth of 26% this year, and a PE of 16.2, we believe the company’s high debt levels warrant investor caution.

Our Ransom Note trendline says:  STAY ON THE SIDELINES.

VRX Chart

VRX data by YCharts

Stock number two is: 

Tiffany & Company , (SYMBOL: TIF) and the headline says:

First Quarter Earnings Shines Bright Like a Diamond – Citi Research

Crista Huff

Crista Huff is a retired stockbroker from a NYSE member investment firm. She writes about market-timing at Goodfellow LLC and is active politically.
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