Carl Icahn doesn’t know what to think about what is arguably the most controversial stock on Wall Street, Valeant Pharmaceuticals, but he knows he wouldn’t buy it.
Here’s what he said in an interview with CNBC on Thursday:
“I don’t know enough about it to say I would short it, but I definitely would not buy it. I just don’t know what — you know, when a company has these problems, I am not smart enough to know how deep they are. And so you wait.”
Valeant Pharmaceuticals’ stock has lost around 90% of its value since October, when a short seller accused the former hedge fund darling of accounting malfeasance. That, combined with government scrutiny over Valeant’s drug price hikes, brought the stock careening down.
Eight months later with a new CEO in place, several federal and state investigations into company ongoing, and a new, untested business model, it’s unclear what will happen to the company next.