Valeant Pharmaceuticals (VRX) has been the talk of the town when it comes to biotechs these days. Heck, it is the talk of all things related to the stock market. Bill Ackman is considering selling his huge stake in this stock, and has brought a lot of pain to his portfolio’s trading performance on the year.
I’ve also received my share of users asking where they should buy this stock at – where to catch the falling knife per se. Personally, that’s not my game, there is too much risk in stocks like these where the emotions run rampant and trading careers are being destroyed. I like to stand on the sidelines when these kinds of things are happening. Let someone else take the risk… not me. If I don’t have a high degree of confidence that I can control the risk, I want no part of it.
Chicken? Yes.
Coward? Sure!
Yellow? Nobody, and I mean nobody calls me… yeah I’m yellow too.
But I live to tell about it. I don’t take edgeless bets, and just because VRX has dropped from $260’s in August all the way down to $81, doesn’t mean it still can’t drop further and in the process hurt you and your portfolio.
If you still must know where levels of support exist on this stock, I give you really, one remaining support level between the current price and well… ZERO.
Here’s the VRX analysis:
