If the reaction to Chardan is this severe, just wait until the Tier 1 firms start to downgrade. Twenties on the way.
The last time they agreed to sell FL for $600M, what actually happened was that Tack Fiori, a clothing company worth $200M-$300M, agreed to issue $600M in new stock to "buy" FL. I don't know why that "sale" fell through, but is there any reason to expect this time will be any different?
Summary: the $600M might not be cash. It might be worthless stock.
Reality. The market for ETC-1002 is going to be just a fraction of what most people were expecting because of competition. Note that it is underperforming the market all day, every day, and it will continue its descent into the $20's, I'm guessing, before it finds support.
Look at yesterday's chart. This stock is not going to turn around regardless of what the market does. Its lead product is not going to have the market that longs hoped it would have. The stock is technically and fundamentally broken.
Doesn't matter. LL has lost the public's trust. Bankruptcy or inventory/store buyout by another retailer are the only options.
If military contractors could build schools in the US, I'm sure they would have gotten a few contracts. Cheney wasn't about to fund any union shops, though.
Monday's low was $110.50, which as far as I know is lower than $111.
If you look at a 5-year chart and draw a trendline at the peaks, we should be at $94 now. The underperformance is completely due to Ackman. As his influence fades, we will reach fair value.