How valid is it?
Very valid until CBI proves that it isn't.
If it was not a widely held valid concern, CBI would never have traded down to $32 and would not be trading as low as it is today.
50/50 chance that CBI stock takes another wild ride (as in down) over the next few weeks/months before a rally in the fall.
accounting news to bail them out.
Toshiba accounting probe results are expected by mid July.
They are hoping to see another one day "flash crash" in CBI which would be followed by a quick recovery.
We shall see.
One month chart is ugly and getting worse by the day.
Headed for the first close under the 50 DMA since Feb.
Could easily be back trading in the mid $40's if the 200 DMA does not hold.
For now...Still have 13+ million shares short and a ton of out of the money July Puts. They are betting on one last chance for a Toshiba/Westinghouse news driven selloff in July.
IMHO...Not going to happen. Looking for a big 3rd/4th qtr. rally in CBI that could see $70/share.
The games played with this stock are unbelievable.
Tanks on the open off the JPM coverage.
6/12/15 JP Morgan Initiates Coverage on Overweight 65.0
Not enough volume to get them worried so they will just wait for a market correction and hope that takes CBI back down into the $40's.