The analyst who was finally vindicated

Graph And Coins

'It was very painful'.

In July 2014, Dimitry Khmelnitsky advised investors to sell Valeant Pharmaceuticals International and then watched the stock double in a year.

“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.

To access the complete Bloomberg News article hit the link below:

The Lone Analyst Who Said Sell Valeant When Hedge Funds Piled In

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