While I have made my opinion on VRX known (and so far I am wrong), I think you are right about this. My theory on the options was that he did it to avoid 13F disclosures. His other high profile bet: HLF is showing the same things - at least he isn't doubling down, but how much can you short when you are already short 20% of the company.
Yeah, I certainly am not arguing about your VRX view. Ackman had to disclose the increase in his stake in the 13D anyways, it seems... I am not sure what the difference might be, if any. Moreover, he previously stated that the fund was fully invested and couldn't buy more VRX outright. HLF is a tough one and I haven't followed, tbh.
I dunno... The increase of his stake showed up in 13D/A. The description of the options trades was in the Exhibit 99.5. I am getting this from the footnotes in Matt Levine's article.
Shares drop 50%. What do you do? Add. Stock drops another 30% and you're fully-invested at your fund? Go to Nomura (wtf?) and do eight-figures in bull risk-reversals. This guy makes VN look sane.
Yeah, like I said, you go to Nomura and UBS, 'cause their analysts' price targets on VRX were the highest at the time.
This is exactly how that knucklehead Surf "traded" in his Surf report. Fundamental view....blah blah blah....no stops, no exit plan. All it takes is the one trade to do you in. Surf's problem was he had a bunch of VRX type trades. It's really no surprise when ego maniacs like Ackman blow up. Good article : http://www.thestreet.com/story/1349...-you-can-learn-from-his-valeant-disaster.html
This Valeant - Pershing thing is getting weirder by the day. http://www.valuewalk.com/2016/05/valeant-ackman-emails/?all=1 http://seekingalpha.com/article/3973074-valeant-unsealed-ackman-emails-terrify-bulls The tone of some of these emails smells like pump-and-dumpers exchanging their views on how best to affect (manipulate?) the stock price. Is this really the modus operandi of this hedge fund? ------------------- "We need to put out more press releases with good fundamental news. The AARP coverage for Jublia should be announced along with the Walmart award and the podiatry award. This could be two or three releases with AARP going today. Let’s sync up about other good fundamental news." "You had previously agreed to run by press releases before you issue them. While this is obviously up to you, I would strongly encourage you to get input from Steve Fraidin on announcements like the one on B&O. While we are happy with the outcome, it was an opportunity for positive press that was missed. The timing was wrong, and the confidential nature of the settlement continues to give fodder to the company’s critics about transparency. Steve also has some very good thoughts on how you manage disclosure concerning on a covenant default due to the late 10-K filing. I encourage you to speak directly." "You should reach out to Nick Uehleck (see below email chain). Nick is a staff member on the House Ways and Means Subcommittee on Health, which has jurisdiction over Medicare law. Nick’s responsibilities include Medicare Part-D. Nick and his team will be important in driving the drug pricing debate in Washington And will be critical to legislating any changes in law. I met him Friday and he is very sympathetic to your side of the story (off the record). He is very pro -business and wants to an adult conversation about the issues. I explained the economic and social logic of your business plan and he got it immediately."