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Valeant Pharmaceuticals & Illinois Tool Works: A Possible Bankruptcy & A Winner

These are our articles posted on Seeking Alpha. Click "READ MORE" if you would like to read the rest of the articles.

Valeant Pharmaceuticals: Is Bankruptcy Ahead?


  • Valeant posted poor 4th quarter 2015 results, and even worse results are expected in the following quarters.
  • The company’s shares soared thanks to the appointment of a new CEO, but its revenue generation is dependent on acquisitions.
  • Acquisitions will decline due to the exposure of Valeant’s aggressive drug pricing scandal.
  • A heavy debt load may lead to the demise of Valeant. Selling now is a prudent strategy.

Investors in Valeant are feeling the pain right now.

Valeant Pharmaceuticals (NYSE:VRX), a specialty drugs company based in Canada has been in deep trouble since 2015. Its business model of making rapid acquisitions of smaller rival drug companies and boosting revenue is showing signs of strain. Once a darling stock among hedge funds, the company's stock price started to plunge from an all-time high of $257 at the end of July 2015 to an all-time low of $27 in mid-March 2016. The share price has recovered somewhat since mid-March 2016. Currently, it is trading around $36 per share, which is not reflective of its deteriorating business fundamentals... READ MORE

Illinois Tool Works - Poised For Greater Growth


  • Illinois Tool Works has created a strong portfolio with the potential to repel negative headwinds.
  • The company posted positive margin growth in the first quarter, leading it to increase its full-year guidance.
  • Despite a recent rally, its stock has further upside potential.

Illinois Tool Works (NYSE:ITW) has been working on a smart strategy of increasing its profits over the years. The company has built a dynamic portfolio and has sustained a smart strategy of investing 80% of its capital in highly profitable businesses. This strategy has laid a strong foundation for future growth. ITW's end markets are not depressed and their extensive geographic reach lends further stability to the company's broad-based foundation. ITW's widely diversified portfolio has the potential to weather any sort of negative economic environment, as evidenced by the company's most recent performance.

ITW's diversification across both consumer and industrial platforms allows it to offset the impact of any risk - expected or unanticipated - and grants it the ability to capitalize on growth opportunities in both aspects of its business. Its consumer businesses account for 60% of its overall revenue and are spread across Food Equipment and Automotive OEM segments, as well as portions of its Construction Products and Specialty Products divisions... READ MORE

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