Things seem to keep getting worse and worse for Valeant Pharmaceuticals Intl Inc VRX 5.24% and its shareholders, including last week’s deep guidance cut. Barclays analyst Douglas Tsao believes Valeant’s new management team is taking steps in the right direction, but the journey will be a long one for the battered company.

No Shortcuts

“While last week’s cut to expectation was not unanticipated given the change in leadership and the realities of script trends in recent months, the magnitude clearly showed a lot of work remains to be done,” Tsao explained.

At the very least, Valeant seems to have eased concerns over near-term liquidity, but Tsao is still leery of the company’s large long-term debt load.

He noted Valeant could further address its debt issues by selling non-core assets, but this strategy would also cut back on the company’s free cash flow.

Barclays believes…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!