WOW! What a roller coaster ride this turn out to be
Under normal circumstances, with a P/E of 10 @ $3.00 eps that would push the stock to $30/share. @ a P/E of 15, it runs to $45.00/share.
Even if they prove conclusively that there was no accounting fraud, there will be a discount for having the problem at all. Deloitte walked for a reason, as did the CFO, and those will weigh on the stock no matter what.
So, even if the stock was fairly valued at $45.00/share, it would hang around the $30.00 mark just because it has been associated with the problem. Even if fully vindicated in every way, this is the damage the coordinated short selling machine causes.
I agree that the short attack is going to have lasting effects, but if the company is cleared before open we will see a huge short squeeze. 80% of the float will be forced to cover and longs no longer will have the motivation to sell. $50 or more is not out of the realm of possibility. If they release a dividend or buy back shares it could be off the charts, possibly the largest squeeze of all time.