Perrigo, I am given to understand, is in essentially the same business as Valeant. That means that the company and its corporate officers are a bunch of scumballs — parasites who until recently reaped outlandish gains by jacking up drug prices, doubling or tripling them overnight for no other reason than that they could get away with it. Public opinion for once seems to have turned the tide, however, and a hard look by the regulators has resulted in the collapse of Valeant and Perrigo shares, as well as the decapitation of such glorified, paper-shuffling bloodsuckers as William Ackman, the erstwhile ‘activist’ investor who staked everything on Valeant.
For those who have enjoyed the spectacular carnage in Perrigo shares, there may be more good news on the way. The monthly chart suggests the stock is struggling for a foothold at 94.34, the Hidden Pivot target of the pattern shown (see inset). However, if support there fails, look for more slippage to at least 77.03 before the company and its institutional sponsors and cheerleaders have gotten their just desserts. PRGO’s spinmeisters continue to put out a barrage of press releases saying everything is going to be all right. If getting drawn and quartered on Wall Street brings real contrition, then I’d tend to agree.