Remember when this was halted and all the idiot dreamers were thinking it would drop only a few dollars and I said it would open at 23 and then keep falling.
Now I am telling you that tomorrow it will open below 20 and may trade into the mid teens. This is a worst case scenerio and the analysts that supported this stock with walnut channel checks will be rushing into the drop coverage tomorrow and P&G will officially bail from the deal.
This is a massive accounting fraud and there is no telling how deep this goes. Even the statement from the company said there may be more fraud committed.
You look at this company that came out of nowhere based on leveraging phony earnings to pump the stock price and then use that stock to buy out other brands and grow. It is like an Enron story.
You can bet indictments will follow here. I wouldnt be surprised if this starts trading down in the low single digits depending on what else is unearthed.
This traded down to $26 on just the SEC news. At this point the INTERNAL audit was still a given to uncover no fraud. So right now we are looking at only a 15% drop from that level. Far too little. It should drop about 40% from the $26-$30 frear area. So figure $14-$16 is imminent. Will likely settle around there until more is uncovered or exonerated. Is the suicide of the chair of the audit committee still unrelated? LOL
Why would I ever cover? There is no upside here. It can only get worse as more and more fraud is discovered and indictments are handed down. Expect FBI raids off this news. This is Enron all over again. I guarantee this is a future CNBC special.