Bausch Health Cos. Inc.: Billionaire's Bet on Healthcare Conglomerate
Bausch Health Cos. Inc. $BHC+0.6%, formerly known as Valeant Pharmaceuticals, is attracting the attention of billionaires eyeing the healthcare company's potential for significant growth. BHC owns 88% of its subsidiary Bausch + Lomb $BLCO+0.6%and has stakes in other companies such as Salix and Solta Medical.
High debt and high potential
$BHC+0.6% faces high debt of $21.2 billion, while its equity is only $2.9 billion. This financial pressure creates a highly leveraged position that can have a significant impact on the company's stock value. Every 1% increase in the company's value theoretically means an 8.6% increase in its equity.
The sale of BLCO as a key catalyst
A key factor that can deliver a huge boost to $BHC'+0.6%s stock value is the potential sale of its BLCO subsidiary. In the event that BLCO is sold for a higher than expected value, it could have a major impact on $BHC'+0.6%s financial position . This move would not only reduce debt but also increase the value of the company's remaining assets.
Billionaire interest and growth expectations
The data points to large cluster purchases of $BHC+0.6%stock , with investments coming from some of the leading billionaires. It is expected that once the deal to sell $BLCO+0.6% is finalized , BHC could become a typical example of a "sum of the parts" play, which could lead to significant growth in the company's stock value.
It's not my thing, but I see that chart looks really interesting.
Oh, my goodness! The rise and fall in 2015 is unreal. Looks like it's still going down based on that drop. Momentum is negative.