• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Eyeing Bausch Health? The Stock Needs Some Primary Care

Let's check out the charts of this name that will be splitting into three companies.
By BRUCE KAMICH
Dec 15, 2021 | 10:55 AM EST
Stocks quotes in this article: BHC

For his second "Executive Decision" segment of Tuesday's Mad Money program, Jim Cramer spoke with Joe Papa, chairman and CEO of Bausch Health (BHC) , the healthcare company.

Next year, Bausch will be splitting into three companies, one for eye health, one for pharmaceuticals and a third for medical aesthetics, in an attempt to unlock value.

Papa said over the past five years he's been able to reduce the debt at Bausch by $10 billion, resolve their legacy legal issues and return the company to organic growth. Splitting the company into three great companies is the next chapter for Bausch.

Bausch will begin the split within the next 30 to 60 days, Papa said, market conditions permitting.

Let's check out the charts.

In the daily bar chart of BHC, below, we can see that the shares made a high back in March and then worked progressively lower. BHC is trading below the declining 50-day simple moving average line as well as the bearish 200-day line.

The On-Balance-Volume (OBV) line shows a long but slight decline from March suggesting that sellers of BHC have been more aggressive for several months. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but gives a weakish cover shorts buy signal.

In the weekly Japanese candlestick chart of BHC, below, we can see a bearish-looking picture. Prices are in a decline and trade below the declining 40-week moving average line.

The weekly OBV line and the MACD oscillator are bearish. A long lower shadow would be nice but it is not showing.

In this daily Point and Figure chart of BHC, below, we can see a potential downside price target in the $18 area.

Bottom-line strategy: The CEO believes that splitting up the company will unlock value, but unfortunately traders and investors do not agree at this point in time. Continue to avoid the long side.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Health Care Equipment & Services | Healthcare | Mad Money | Executive Interview

More from Stocks

Warning: Watch for Bull Trap

James "Rev Shark" DePorre
Jun 30, 2022 4:32 PM EDT

After an ugly day of bear market trading, beware of what could hide ahead on Friday.

For This REIT It's All About That Base

Bruce Kamich
Jun 30, 2022 4:10 PM EDT

We're checking the charts and indicators on Ventas, owner of senior housing and medical facilities.

This ETF Boasts 'Inflation Protection,' but Will It Rise to the Occasion?

Mark Abssy
Jun 30, 2022 3:26 PM EDT

The Ionic Inflation Protection exchange-traded fund, the latest such ETF to hit the market, offers direct exposure to the consumer price index.

Want to Save Your Retirement Fund? Tune Out the Talking Heads

Jim Collins
Jun 30, 2022 3:14 PM EDT

The first half of this year has been ugly. But we could have seen what would happen to Netflix, Tesla and Meta...

National Health Investors Is Aging Well as It Emerges From a Base Formation

Bruce Kamich
Jun 30, 2022 2:16 PM EDT

Buyers of the shares are becoming more aggressive.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 07:59 PM EDT PAUL PRICE

    Very good quarterly numbers from Bassett Furniture (BSET)

    Bassett Furniture (BSET) blew right through analys...
  • 04:41 PM EDT PAUL PRICE

    First Half Results - Putrid Second Half Results - Likely to Be Much Better

    It's great that we're done with June. 2022 marked...
  • 04:51 PM EDT PAUL PRICE

    We Should Be in for Better Starting Soon

    Window dressing Thursday, the last day of the...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login