RE:CXR isn't a stock. It's a drug! My best friend...
Talk to your friend again. He's either gone short or he cut his loses and going sidelines waiting to see what happens when this train totally derails. You have to know the difference between a roller coast and derailment. This is a full fledge derailment and we will likely see $1-3.
And if he is really pegging it solely on being in the shadow of VRX or on future promised earnings like many die-hards here, then he'll lose a lot of money, pull back and return to managed money (mutual funds) with the scraps remaining or off market (real estate) and, after his deep wounds are healed, he might come back. I the guys I know who really "get it" and are able to cut their loses, have lost big at some point. Me included.
I got "hot hand" this summer after a few really big contrarian wins and boys, was it a reminder not to get too full of yourself. Still did great but should have taken the whole summer off as I normally do!
If this company is rotten to the core, as it appears to be, it's going to go down and stay down for a LONG TIME! I'm talking about sub $1 with continual reverse split. The debt is too big, the short sellers too big, the CEO too fragile.
With fires burning out of control and some well researched forensic people on MT's case, I can tell you nothing will happen until heads rolls. You don't want to be holding the bucket before that happens because when the axe comes down, a lot of people are going to lose their heads or get a serious haircut.