Quote:
Originally Posted by Peter_Spaeth
I bet the guarantee seemed like a good idea at the time. I have to believe they have known for a long long time that there was at least potential for liability well over and above the reserve -- it seems likely they were aware of the volume of doctored cards in the hobby and they can only do so much to keep them out -- but they probably never anticipated it could come to the forefront so quickly and dramatically. I would think that, more than the prospect of reduced revenues, would be the concern of a large investor at this point.
If the stock takes too big a hit there might be a way to fashion a securities fraud suit against CU, as well as whatever collector suits against PSA people are considering.
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Given their largest holder is an algo, they could be dumping right now because it's most likely failing its momo program.