Valeant Call Causes Investor Concern on Ebitda Correction

The video discusses a company's financial guidance correction, leading to a significant stock drop and questioning of CEO Mike Pearson's credibility. Analysts express concerns over management's ability to lead, citing technical analysis indicators like breakaway gaps and RSI. Despite financial challenges, the company has strong cash flow and time to address issues. Board dynamics and communication problems are highlighted, with activist investors involved in the company's future direction.

What was the initial adjusted EBIT guidance provided by the company?

• 6.0 to 6.4 billion

• 6.2 to 6.6 billion

• 5.8 to 6.2 billion

• 6.4 to 6.8 billion

What is a breakaway gap in technical analysis?

• A gap where a stock's low today does not overlap yesterday's high

• A gap where a stock's high today does not overlap yesterday's low

• A gap where a stock's high today overlaps yesterday's low

• A gap where a stock's low today overlaps yesterday's high

What does an RSI below 30 typically indicate?

• The stock is experiencing high volatility

• The stock is at fair value

• The stock is oversold

• The stock is overbought

What is one of the main issues facing the company's management?

• Inability to generate free cash flow

• Excessive debt with no plan for repayment

• Poor communication and leadership

• Lack of a clear business model

Who are the activist investors mentioned in the discussion?

• Bill Ackman and Jeff Oven

• Jeff Oven and Carl Icahn

• Warren Buffett and Bill Ackman

• Carl Icahn and Warren Buffett