Ritholtz Wealth Management CEO Josh Brown sees there is "toosh-covering" coming for the embattled Canadian pharma company Valeant Pharmaceuticals Intl Inc VRX.
"The people saying things like 'taking steps in the right direction' are people who had buy recommendations on this stock 200 points higher. You're going to see toosh-covering going on over the next three months like you cannot imagine," Brown said on CNBC's Halftime Report.
Related Link: Greenberg: Valeant Reminds Me Of Tyco
Commenting on the stock price, Brown said, "There is a lot of hair on this one. At $28, $29 bucks a share, I am saying you can take a shot. I cannot see a double –headed jump, but I do say that the stock could be $40 just like that."
Shares of Valeant are rallying on the prospect of a new CEO and were up 9 percent at $31.58. They were down 88 percent from the August 2015 high of $263.81.
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