Chemours Co (NYSE: CC)
Chemours was off to a rough start to the trading session today. When the opening bell rang, the stock found itself well into the red. However, throughout the beginning of the morning, the stock made a push toward the green, making it to the breakeven point. Nonetheless, the stock started to dive yet again just minutes ago. Below, we’ll talk about what we’re seeing, why, and what we’ll be watching for with regard to CC ahead.
What We’re Seeing From CC
As mentioned above, Chemours isn’t having the best of days in the market today. After starting the day off on a low note, it looked like things were going to get better quickly. However, just after reaching the breakeven point, the stock started to take a dive. At the time I started writing this article (10:37), the stock was trading at $21.36 per share after a loss of $0.85 per share (3.83%) thus far today. However, things are starting to turn in the positive direction. At the moment (10:42), the stock is trading at $22.37 per share after a gain of $0.16 per share (0.72%) thus far today.
Why We’re Seeing The Movement
As usual, our partners at Trade Ideas were the first to alert us to the gains. As soon as they did, the CNA Finance team started digging to see what was happening. In this case, it didn’t take long to dig up the story. It seems as though the movement is being caused by an announcement of punitive damages.
While it’s looking good at the $15 million total the company has to pay for this one case, when you multiply the total by all cases the company is facing, things get scary. So, while investors are happy with the outcome, concerns with regard to future damages are a big deal at the moment.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on CC. In particular, we’ll be watching for more judgments against the company. Sure, this one went well. However, as the several cases continue to close, things can get bad quickly. We’ll be watching the news closely and bringing it to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!
[Image Courtesy of Flickr]