Shares of Chemours (CC) are up over 153% year-to-date and more than 50% since a short seller went after the chemical maker in June. Chemours emerged last June as a result of DuPont (DD) spinning off its performance chemicals business. Shares of the company last traded just under $14 a share, an impressive turnaround after sinking to the $3 level in January. Still, the company has a long way to go before it reaches its high of $22.25, which was achieved on the day of its initial public offering. The company is also financially on the hook for payments resulting from personal injury and wrongful death claims arising from DuPont's handling of PFOA, a chemical used in the production of Teflon. Citron Research's Andrew Left pointed to this litigation risk in June as a primary reason to short the company's shares. On the flip side, Greenlight Capital's David Einhorn has defended the stock, saying Left's damages estimates are way off. Vergnano said DuPont is the defendant in those trials with Chemours "being connected" and thus far the record has been good in fighting the lawsuits and he will continue to do so.
More from Video
Amid the Selling, Here's the Big Question Now
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
One Tweet Pulls the Rug Out From Under the Indexes
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
A Technical Look at the New Dow Jones Industrial Average
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
Conagra Brands Looks Tastier After Its Upgrade to Buy
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.
Biogen Bulls Get a Lift From Quant Upgrade and Strengthening Charts
Breaking down an approach to the long side of this biotech stock.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.