Valeant Short Seller Picks Next Target

The video discusses the decline of Valiant's stock following Citron's report linking it to a specialty pharmacy. It then shifts focus to Transdigm, drawing parallels between the two companies' strategies of raising prices on niche products. Citron's report on Transdigm is met with skepticism by analysts, highlighting the company's financial vulnerabilities, including significant debt and the need for consistent earnings performance.

What was the impact of Citron's report on Valiant Pharmaceuticals?

• It resulted in a merger with another company.

• It had no effect on the stock price.

• It caused a major drop in stock price.

• It led to a significant increase in stock price.

How does Transdigm's business model compare to Valiant's?

• Both companies focus on reducing prices to increase market share.

• Both companies raise prices on obscure products with limited competition.

• Transdigm focuses on pharmaceuticals, while Valiant focuses on aerospace parts.

• Both companies are known for their charitable contributions.

What is a major concern about Transdigm's financial situation?

• Its bonds are rated as high as AAA.

• It has a low level of debt.

• It has no upcoming earnings reports.

• It has more than $10 billion of debt and high leverage.

What is the general market reaction to Citron's report on Transdigm?

• The report led to an immediate increase in Transdigm's stock price.

• The report was widely accepted and praised.

• The report was ignored by most analysts.

• The report was criticized for being inflammatory and inaccurate.

What is a potential risk for Transdigm due to its financial structure?

• It has ample room for financial missteps.

• It has no debt on its balance sheet.

• It faces little scrutiny from investors.

• It has limited room for error due to high leverage.