Billionaire investor Bill Ackman said last Thursday said he has “something to prove” after he incorrectly bet on drugmaker Valeant Pharmaceuticals Intl Inc (NYSE:VRX). After liquidating his position in VRX stock in March, Ackman apologized to investors for the resulting $4 billion loss.

What’s Up With VRX Stock?

Speaking at the SkyBridge Alternatives, or SALT, hedge fund conference, Ackman insisted that he and his company see better days ahead. But, Valeant stock investors should realize that the “better days” Ackman envisions don’t include Valeant. With VRX stock skyrocketing 52% over the past month, investors should be thankful for those gains, yet take the money and run.

VRX stock closed Friday at $13.52, up 0.37%. Once Canada’s most valuable company, with VRX stock trading north of $300 in the summer of 2015, Valeant has become synonymous with corporate greed, price gouging and a host of other legal headwinds that have caused VRX stock to plummet to a recent 52-week low of $8.31.

But, something has changed recently, as VRX stock has risen 62% from its low in April.

The reason for the recovery? Earlier this month, Valeant not only posted its first profit in six quarters, management raised the annual guidance for 2017. The announcement, which coincided with earlier-than-expected asset sales to L’Oreal SA (ADR) (OTCMKTS:LRLCY), caused VRX stock to soar by as much as 15%.

“Our first quarter performance demonstrates that we are delivering on our commitments. We met our internal expectations, and we are continuing to make progress on our key initiatives…” Joseph C. Papa, chairman and chief executive officer of Valeant, said earlier this month.

Has Optimism Run Too High?

The company continues to expect total revenue in the range of $8.9 billion-$9.1 billion, but also raised its guidance for adjusted EBITDA by $50 million. Investors also celebrated the announcement that VRX will close the sale of Dendreon to Sanpower Group for $820 million in mid-2017. The company plans to use the proceeds from the divestiture to pay down its high levels of debt.

What’s more, during the quarter, Valeant reported first-quarter earnings of $2.80 per share on revenue of $2.1 billion, topping consensus estimates of 96 cents per share on revenue of $2.2 billion. And, although revenue fell 11% year over year — due to lower volumes in the U.S. Diversified Products and Branded Rx segments — Valeant was able to reduced debt by $1.3 billion.

The company also completed more than $1.3 billion in asset sales, including the earlier-than-expected closure and sale of the CeraVe, AcneFree and AMBI skincare brands. While these fundamental improvements are encouraging, as of March 31, 2017, VRX still has $28.5 billion of debt it must contend with. The most important risk with Valeant is whether it can manage its debt covenants.

Bottom Line for VRX Stock

While the dermatology business saw some positive trends during the quarter, thanks to improved average selling prices, the gastrointestinal product segment business continues to struggle with weak sales of Xifaxan. With the company having limited ways to raise prices, the recent rise in VRX stock should be seen as a selling opportunity.

There are tons of investors who continue to be drawn to the appeal of a cheap stock price. But, there is no indication that VRX can avoid the struggles that come with its massive debt. Until Valeant can demonstrate a consistent ability to execute and grow revenue and profits, investors should stay away from VRX stock.

As of this writing, Richard Saintvilus did not hold a position in any of the aforementioned securities.