March 15, 2016 10:45 am eastern time

Markets are down moderately this morning and oil is down 1.9% to $36.47.

Valeant is down an ugly 34%. Sometimes the mighty do fall hard. The unfortunate fact is that Valeant has a lot of debt and that means the equity could conceivably go to zero. I noted the very high debt level in my report last Summer. A lot of people don’t like Kevin O’Leary but he nailed this one at the first sign of trouble in September when he said it was toxic waste and repeated that yesterday on BNN. I don’t agree certainly with everything O’Leary says but I have always found him to be quite entertaining and have been watching him speak about investments for over ten years now. He nailed Bombardier and Nortel early as well.

In other news Sobeys / Empire is writing off $1.7 billion of its $5.8 billion purchase of Canada Safeway. Sobeys has traditionally been a well-managed company that grew out of a village in my home province of Nova Scotia. Hopefully this is a one-time stumble. I have not looked at its financials and have no opinion on Empire as an investment.

There was also a story this morning that retailers in Malls formerly anchored by Target stores may be able to break their leases. This is (sometimes) allowed when the anchor closes but had been delayed by the bankruptcy. I don’t know if this has any material impact on RioCan but it could be at least a minor negative.