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.
 
TOWNHALL DAILY: Be the first to read Crista Huff's column. Sign up today and receive Townhall.com daily lineup delivered each morning to your inbox. Release of Liability: Through use of this website viewing or using you agree to hold www.GoodfellowLLC.com and its employees harmless and to completely release www.GoodfellowLLC.com and its employees from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. Goodfellow LLC and its employees are not paid by third parties to promote nor disparage any investment. Recommendations are based on hypothetical situations of what we would do, not advice on what you should do. Neither Goodfellow LLC nor its employees are licensed investment advisors, tax advisors, nor attorneys. Consult with a licensed investment advisor and a tax advisor to determine the suitability of any investment.
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