I remember when this company of Valeant Pharmaceuticals International, Inc. (VRX) plunged and people said, after the fact that they recognized the problem of too much debt, especially in relationship to the market cap. Peter Tchir talks about Valeant's debt in this Forbes article.
However, when this stock was soaring ever higher, I do not remember anyone ever bringing up this problem. Everyone seemed to just get on the bank wagon of every higher stock price for this company. After the stock price started to fall it seemed that a number of people where pointing out the fact of the high debt compared to the market cap and that people should have seen that and acted accordingly.
On Thursday of this week, I will talk about what debt ratios that I look at for the companies I review. I always keep an eye on long term debt compared to a stock's market cap.
On my other blog I wrote yesterday about Innergex Renewable Energy (TSX-INE, OTC-INGXF)... learn more. Tomorrow, I will write about Crescent Point Energy Corp. (TSX-CPG, NYSE-CPG)... learn more on Wednesday, November 30, 2016 around 5 pm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.