Eye-Opening Profit Opportunity

A few weeks ago, War Room members jumped into Bausch Health Companies (NYSE: BHC). This morning shares jumped more than 12% when the company announced its expected upcoming revenues and earnings.

Here’s an excerpt from Dow Jones & Company:

Bausch Health Cos. said it expects reported revenue for the third quarter to be more than $2.1 billion, down about 3% from the comparable quarter a year ago. For the year, the company said it expects revenue “to be around the midpoint of” its current guidance ranges of $7.8 billion to $8 billion. It expects adjusted earnings before interest, taxes, depreciation and amortization “to be around the midpoint of” the company’s outlook between $3.15 billion and $3.3 billion. Those comments are based on how business recovered during the third quarter “and assuming its businesses continue to rebound from the impact of the COVID-19 pandemic.”

You may have heard of Bausch thanks to its eye products. But the real story behind it is the company it once was. Bausch used to be Valeant Pharmaceuticals, a company that resides in the investment hall of shame.

Years ago, Valeant was the darling of Wall Street, acquiring every company in sight, including Bausch & Lomb. It paid top prices, and it issued a ton of debt. The shares traded in the triple digits as investors bought up the rosy projections.

Then the bottom fell out. The CEO resigned under a cloud, and the debt that drove the growth was a massive albatross hanging around the company’s neck. The name was changed to Bausch Health Companies in 2018.

Bausch shares recently plunged. And savvy insiders and War Room members were lying in wait. The insiders stepped up first after announcing continuing measures to divest assets and pay down debt.

That’s usually a good sign, especially when they pony up their own money.

War Room members jumped in with a covered call play, dropping their net cost for the shares to less than $15. This morning they traded for more than $18. I think they are going higher, as the company appears to have a handle on its growth and debt.

Action Plan: If I’m right, we are very early in this story, and you should pick up shares for less than $16 on a pullback. Why not buy them now?

Well, we are in an uncertain political season that may provide a great opportunity to buy shares on volatility. War Room members will get the alert to add in real time… at the right time. How about you? Don’t you want to be part of the group that buys in on the cheap? Sign up now and get on that list!

P.S. You asked… and we listened. Get ready for our new service, Trade of the Day Plus, where you’ll receive one trading pick a week straight to your inbox! We’ll not only send you our top picks but also update you each week and monitor the positions throughout the entire holding time! Be on the lookout for our new service coming soon!

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