Earnings estimates will be hit in the near-term so $75 is not reality but the mid $40's can happen if things go right. I believe it closed just under $52 the Friday before 60 Minutes so maybe that's possible to but unlikely right away. The customer loyalty has to be damaged in the short-term but can come back with facts supporting their products and a widespread ad campaign stating the facts. PR will be very important at first if they can show their products are safe.
I posted the other day when it was under $28 that the stock was suddenly available to short despite the huge short interest which I tells me that my broker (along with others) probably covered their shorts and may have went long and that at that point it may have been a bottom for now. I have seen that happen before I thought they were trying to trap new shorts at those extremely low levels when sentiment was at the recent low.
If they fail to prove their point this will go down fast but $10 seems big though. If they actually prove that the 60 Minutes story and testing was flawed there are a TON of shorts in the shares. Then it gets really interesting.
Possibly it's true we will find out eventually I guess. This case reminds me so much of the research/hedge fund Citron that went after QCOR a few years back and their final attempt to bring the stock down was by testing QCOR's vials and claiming there was not the amount of the active ingredient that what was posted on the label. QCOR eventually won especially after MNK bought them.
That's where tomorrow's presentation is so important. So many assumptions being made about their liability vs. cash that's where they have to clarify how much of this or if all of this will be covered by some form of insurance if the products are proven to be within acceptable standards. It will still take some time to heal the wounded loyalty.
Looks like covering near $28 was a good idea no? You see this so many times when there are so many people preaching the demise of a company something usually happens to reverse the trend. Too much greed can be a bad thing sometimes.