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Papers: Valeant Pharmaceuticals International Inc slashes guidance

Other stories featured: price target hike for Mandalay Resources; energy sector revival; Angbang gatecrashes hotels merger; Super Tuesday;
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Valeant's full-year results are overdue but it has released provisional fourth quarter figures

Good news for the beleaguered energy sector, if the New York Times is to be believed.

It claims investors are increasingly bullish on the sector, based on recent increased interest in share issues by oil and gas companies.

Investors have been placing bets that oil prices have hit rock bottom, while hedge funds and private equity firms have been sniffing around looking for potential bargains, according to reporters Clifford Krauss and Michael Corkery.

Wall Street Journal

Hot off the presses – not that digital newspapers have presses – the Wall Street Journal's (WSJ) online edition reports that controversial drugs company Valeant Pharmaceuticals International Inc (TSE:VRX, NYSE:VRX) has slashed its guidance for the current quarter after unexpectedly sliding into the red in the final quarter of 2015.

Shares of the Canadian firm were sharply lower in pre-market trading, the WSJ reported, as it described its fourth quarter results as “preliminary” and therefore subject to revision. The company had been scheduled to release its full-year results on the last day of February.

Los Angeles Times

In the Los Angeles Times, the paper opines that the gatecrashing of Marriott International Inc's (NASDAQ:MAR) takeover of Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) by Chinese firm Angbang Insurance Group has echoes of another US land grab 30 years ago by cash-rich Japanese companies.

Angbang crash-banged its way into the wedding party leading a group making a $12.8bn offer for Starwood, owner of the Westin and Sheraton brands.

Angbang already owns New York's world-famous Waldorf Astoria and recently, according to reports, agreed to buy Strategic Hotels & Resorts from private equity firm Blackstone Group for $6.5bn.

“Amid the slowdown in China's economic growth and devaluation of its currency, Anbang's buying spree reflects its desire to diversify its holdings by adding valuable real estate in the United States and Europe,” the paper reports.

The Washington Post

The Washington Post wonders whether today could be the last hurrah for Republican presidential candidate wannabes Marco Rubio and John Kasich, as five states vote in what is known as the second “Super Tuesday” of the gruelling campaign.

The paper said it is not out of the question that the Republican front-runner, Donald Trump, could sweep all five states (Florida, Missouri, North Carolina, Ohio and Illinois) but reckons a split-decision of some kind is the more likely outcome.

“John Kasich is closing strong and considered the favorite to prevail in his home state [of Ohio],” the newspaper claimed.

There are 367 Republican delegates at stake.

As for the Democrat front-runner, Hillary Clinton, complacency among her supporters is the main danger, the Post reckons.

The Globe and Mail

In Canada, the Globe and Mail's David Leeder writes in the 'Eye On Equities' column that the analysts at BMO Nesbitt Burns have raised Mandalay Resources Corp (TSE:MND) to "outperform" from "market perform”.

The share price target has been hiked by 20 cents to C$1.25, above the mean target price among the coverage universe of C$1.04. Mandalay's shares closed at 85 cents on Monday.

"Raising our near-term gold and silver price assumptions has had a significant impact on our Mandalay valuation. With relatively short mine lives, Mandalay is more sensitive to near-term changes in commodity price assumptions, and our net present value (NPV) for the company increases almost 10 per cent, while our 2016 estimate cash flow per share (CFPS) increases over 30%," the BMO analysts said.


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