Article Link: Cramer: Valeant fuss a ‘travesty’
The situation surrounding Valeant Pharmaceuticals has transformed the company into a “great mystery,” CNBC’s Jim Cramer said Monday.
“The numbers are all over the map. No one knows what the cash flow is; no one knows what the company is doing,” he said on “Squawk on the Street.” “These are the things [you find] with a private, family company and there’s a rivalry. This is a public company. This is quite frankly a travesty.”
Cramer made his remarks after Valeant announced CEO J. Michael Pearson would be leaving the company, as the U.S. government investigates its business and accounting practices.
Valeant shares gained nearly 10 percent Monday, but are still down about 70 percent this year.
Valeant stock in the last 12 monthsSource: FactSet
The company also said activist investor Bill Ackman — one of its largest shareholders — is joining its board of directors.
“Ackman joining the board is a sign that he can’t dump his stock,” Cramer said.
Valeant did not immediately respond to CNBC’s request for comment. Ackman’s hedge fund, Pershing Square Capital Management, declined to comment.
Disclosure: Cramer’s trust did not own Valeant stock when this article was published.
Source: CNN Investing