Value Investing Einhorn's Worst Year Ever: Greenlight Losses Swell to 26% |
- Einhorn's Worst Year Ever: Greenlight Losses Swell to 26%
- Interesting Presentation by John Hathaway of TOCQUEVILLE ASSET MANAGEMENT L.P. at Grant's Conference April 2018
- Diversification During a Century of Drawdowns
- Bausch Health Companies (BHC) formerly Valeant is levered at 7x, reducing debt by 1x a year and trades at 10x EV/EBITDA
| Einhorn's Worst Year Ever: Greenlight Losses Swell to 26% Posted: 30 Sep 2018 11:05 AM PDT |
| Posted: 30 Sep 2018 09:26 PM PDT |
| Diversification During a Century of Drawdowns Posted: 30 Sep 2018 11:09 AM PDT |
| Posted: 30 Sep 2018 12:18 PM PDT This means the equity should accrue ~30% a year from deleveraging alone. The biggest risk to the story was that they would lose exclusivity on Xifaxan (their flagship drug within Salix) but they recently reached an agreement with Teva (who had made a generic challenge) to hold off a generic until 2028. The business is now growing revenues ~5% organically and EBITDA is projected to grow 3-5% annually for the next 5 years. They own Bausch and Lomb - a wonderful asset, Salix is now safe (w/ Teva settlement) and their LOE's are mostly behind them. There are a slew of new products being launched which they refer to as a significant 7 that are projected to earn a combined $1b in revenues at peak. On the legal front they were actually found to the VICTIM in the Philidor case. There's a RICO lawsuit outstanding but I think its unlikely to go anywhere given that the govt/regulators haven't beeb able to prove any wrong doing on Valeant/BHC's part. Insiders have been buying increasing amounts of shares.. So, what am I missing? Why is this not the turnaround of a lifetime? Note - please see my rough math on 25% price appreciation through deleveraging alone in comments [link] [comments]  |
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