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JIM CHANOS: We're short Valeant and Tesla
(Reuters)
Jim Chanos.
Legendary short-seller Jim Chanos is not convinced that Valeant will turn itself around.
He is also short Tesla and SolarCity, he said Wednesday.
"We're still short Valeant," Chanos said in an interview with CNBC at the Sohn Conference.
The pharmaceutical company, a former stock market darling, has been hit with Securities and Exchange Commission investigations, Senate investigations, and a precipitous decline in its stock price.
Chanos said "everybody" is using metrics that are "just as bad as Valeant's accounting ... I think that a lot of people are operating in this stock on the basis of false presumptions."
He continued:
The whole idea was to buy things and then hike prices dramatically. The payers have woken up — that is the difference here. Valeant was genius at gaming the system; that game is over ... This was financial engineering, this was not pharmaceutical development.
Valeant has been accused of price gouging, among other things — that is, buying drug companies and raising the prices on their products.
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