The major shortfalls of Valeant Pharmaceuticals (VRX) are well known throughout the investment world. But according to TheStreet's Jim Cramer, there's a core group of investors that continue to believe in the company.

Will Valeant's earnings results on Tuesday encourage investors to stay long the stock?

Obviously Valeant's competitors can smell blood in the water and want to buy some of Valeant's more attractive businesses, Cramer, the co-manager of the Action Alerts PLUS portfolio, said from the floor of the New York Stock Exchange Monday.

The company's CEO recently said management is weighing price cuts on some of products, which would be "pretty devastating," Cramer reasoned. However, the hardest pill to swallow with Valeant comes in the form of debt.

Simply put, Valeant has too much of it and needs to find a way to lighten the load. If the company can find a way to lower its debt and shed some non-core assets, then the stock will higher, Cramer explained.

Analysts expect the company to earn $1.75 per share on $2.49 billion in revenue.

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

More from Opinion

AAP Exclusive: Cramer Says The President is No Longer on the Side of the Bulls

AAP Exclusive: Cramer Says The President is No Longer on the Side of the Bulls

Why It Makes Perfect Sense for Netflix and Amazon to Buy Up Movie Theaters

Why It Makes Perfect Sense for Netflix and Amazon to Buy Up Movie Theaters

2 More Reasons to Sell All Your Stocks and Run Away

2 More Reasons to Sell All Your Stocks and Run Away

Sean Hannity's Link to Trump Lawyer Raises Questions: Doug Kass Insider

Sean Hannity's Link to Trump Lawyer Raises Questions: Doug Kass Insider

Netflix Blowout Earnings Remind Investors of One Thing: This Company Is a Beast

Netflix Blowout Earnings Remind Investors of One Thing: This Company Is a Beast