Bausch Health Cos. Inc.: Billionaire's Bet on Healthcare Conglomerate
Bausch Health Cos. Inc. $BHC, 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 $BLCOand has stakes in other companies such as Salix and Solta Medical.
High debt and high potential
$BHC 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'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'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 $BHCstock , with investments coming from some of the leading billionaires. It is expected that once the deal to sell $BLCO 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.
The stock is rising very fast and it looks like an interesting investment, but unfortunately the price is pretty high right now.
It may not be bad, but I won't be shopping. I prefer the better known and bigger companies.
Well, I don't really like that concept, so I'm staying away from it.
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.