'It was very painful'.
“It was very painful,” Khmelnitsky, an analyst at Veritas Investment Research, said in an telephone interview from his office in Toronto. “What I felt was pain.”
Bloomberg News reports that Khmelnitsky was the lone analyst with a sell rating on Valeant for 20 months, sticking to his recommendation through the bull market as star hedge-fund managers including Bill Ackman piled in. Now that Valeant has plummeted almost 75% since its August 2015 peak of $262.52 -- as scrutiny intensified over its soaring drug prices, accounting and controversial distribution system -- the downturn has vindicated his research. Yet the analyst, an accountant by training and a former soldier in the Israeli army, doesn’t see it that way.
“It was a mixed feeling of being justified in our prior analysis, but obviously I was feeling pain for all those investors who jumped into Valeant,” Khmelnitsky said.
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