Cramer: Valeant's Stock Doesn't Stop Here, It Goes Higher
Shares of Valeant Pharmaceuticals Intl Inc (NYSE: VRX) opened more 10 percent higher Monday and continued to trade strong on back of the company confirming that it is buying Salix Pharmaceuticals, Ltd. (NASDAQ: SLXP) in a $10 billion deal.
Jim Cramer on CNBC was seen praising Valeant and arguing how the stock is going to continue moving higher.
“I think that Valeant is amazing… They just blew the numbers out,” Cramer said. “I mean, it’s a drug company that is growing much faster than all other drug companies and it’s rather remarkable and this deal, if they do get the Euro bowel syndrome Salix approval, then I think it’s just going to be higher and higher. I think the stock doesn’t stop here, it goes higher.”
Will Valeant Continue To Make Use Of Low Tax Rates In Canada For Further Acquisitions?
“Exactly and that’s why they are not done,” Cramer replied. “It’s just the ultimate inversions deal, it’s really working out very well and they can continue to buy and they can continue to make more money than anybody else. We are getting these major companies out of nowhere. Actavis and Valeant are becoming…giant pharma now.”
Which Sectors Do You Think Will Outperform Others Over The Next 12 Months?
“I don’t know, I mean oil is still not done going down,” Cramer said. “Restaurants, retail, hotel, travel -- they are all fabulous and very visible to the average investor, but the average investor is not focused, they're just not looking at it.”
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