Short covering into the weekendI'm guessing we will see continued short covering today and on Friday.
Shorts have realized that Thompson cancelling BNN for "travel" increases the probability of a NR on Monday on a strategic alternative. Personally I would not want to be short on a stock as leveraged as CXR if an update is coming.
For every $25M in increased EBITDA the value of the Co. increases by $200M which is 60% of the current market cap.
If your short do you really believe an international distribution deal cannot be signed that results in $25M EBITDA?
Remember, we are talking about a company guiding $510-$550M in EBITDA for 2016. An increase of $25M EBITDA is only a 5% bump from the midpoint of $525M EBITDA
Or maybe CXR is in fact the next Nortel. I suppose we will have to wait until next week to see if there is an update.
GL.