With the debt this company has saddled up and the de-listing that is imminent, it's a very risky gamble to play a turn-around for this stock. The best I'd hope for is a nice short term bounce, but the shorts will be fading it. If you check the statistics for this stock you'll see that on Nov. 30th, the shorts have 1.4 M shares short which is 24.70% of float. The shorts have been betting on the failure of this company for some time now. I'm not sure how management can work this out, based on the news it sounds like a debt covenant should have been violated, but the CEO was able to re-negotiate the covenant; unfortunately, that doesn't fix the de-listing problem.
The quote from the PR regarding the amended credit agreement follows:
"In its quarterly release, CPI said it amended its credit agreement to suspend the leverage ratio test for the third quarter and that had the test not been suspended, the company would not have been in compliance."
Quote for listing non-compliance: "The company received a notice in October from the New York Stock Exchange that it's out of compliance with the exchange's listing standards, since its average market capitalization had fallen below $50 million over a period of 30 consecutive trading days. CPI said it submitted a plan to the NYSE to regain compliance and is awaiting comment from the exchange."
Full Disclosure: I've never been long or short this stock. I was considering a long position but had second thoughts after my due diligence. In summary this stock isn't good for much more than short term bounce unless you are willing to make a big bet (I'd argue you have better odds in Vegas when considering a new long term long position here).