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Now Long On Valeant, Andrew Left Backtracks On 'Uninvestible' Comment

Now Long On Valeant, Andrew Left Backtracks On 'Uninvestible' Comment

Andrew Left and his research firm, Citron Research, previously trashed Valeant Pharmaceuticals Intl Inc (NYSE: VRX) business, calling it a "Pharmaceutical Enron."

Following his harsh comments, it may be surprising to some investors to find out that Left is now long Valeant.

Speaking as a guest on CNBC, Left noted that while he said in the past that Valeant and its stock is "uninvestible," the notable short-seller is now long the stock. However, he did buy downside protection in the form of out-of-the-money puts.

Related Link: Valeant Spikes After Andrew Left Says He's Long The Stock, Out-Of-Money Puts

Left defended his purchase of the stock by suggesting that the company's appointment of Joseph Papa as CEO is not a move done by a company that is preparing for bankruptcy.

Left further suggested that Valeant's stock is unlikely to return to $60 a share. He suggested that even if the stock were to rebound to the $40 per share level, it would still represent an attractive return — at least for him.

"I found an opportunity to buy a stock hated by everyone at a price I thought could be attractive," he further explained.

Finally, Left said that the Valeant position is part of a pair trade in which he is simultaneously short shares of Mallinckrodt PLC (NYSE: MNK).

Latest Ratings for VRX

Jun 2018DowngradesBuyHold
Jun 2018UpgradesEqual-WeightOverweight
May 2018UpgradesNeutralBuy

View More Analyst Ratings for VRX
View the Latest Analyst Ratings

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