NEW YORK (Real Money) -- I have to rethink my concerns about what happens if Valeant (VRX) walks away from Allergan (AGN). In preparation for my interview with David Pyott, the CEO of Allergan, I took a look at what all of the other drug companies' stocks have done since the bid, and the answer is pretty much a big fat zero. So I figured the stock would go back to where it was while Ackman's Pershing fund was buying it up but before the offering was announced.
After listening to Pyott last night, I now think it can be higher; not necessarily as much as it is now, because you will always have disappointed arbitrageurs, but up enough that the risk reward is better than I thought.
Pyott is saying that he can do a huge restructuring to bring out value or undertake a value-creating acquisition. I don't know whether the market will like the latter, unless it is an inversion. The former could be well-received.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV