Wendy Boyd
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Wendy Boyd in Historical Parallels,

Valeant Isn't Out Of The Woods Yet

Investors initially celebrated a mixed Q2 earnings report from Valeant Pharmaceuticals Intl Inc (NYSE: VRX) to the tune of a 7 percent Tuesday-morning pop for the stock. However, that enthusiasm quickly evaporated as the reality of yet another guidance cut and an uncertain future started to sink in.

After finishing Tuesday’s session up just 1.7 percent, Valeant’s slide spilled over into a 10.6 percent sell-off on Wednesday.

According to a pair of Wall Street analysts, Valeant investors are right to be skeptical, and the company has a long way to go before it has put its troubles in the rear-view mirror. Read more

There is a breakout of the rising channel, so the downside trend will start to form.