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

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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

DateFirmActionFromTo
Jun 2018TD SecuritiesDowngradesBuyHold
Jun 2018BarclaysUpgradesEqual-WeightOverweight
May 2018MizuhoUpgradesNeutralBuy

View More Analyst Ratings for VRX
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