Chemours Co CC 0.24% shares are down more than 7.6 percent in Thursday after Citron released a new report slamming the company as “a bankruptcy waiting to happen.”
According to Citron, Chemours was actually created with bankruptcy in mind. Last week, roughly 5.2 million Americans discovered that their drinking water is contaminated with two chemicals, perfluorooctanoic acid and perfluooctane sulfonic acid, which are linked to cancer.
The first of 260 cancer-related lawsuits against E I Du Pont De Nemours And Co DD 0.01% began today in Columbus, Ohio, but Citron believes DuPont has set Chemours up to take the fall for 60 years of toxic dumping.
Last year, DuPont spun off its performance chemical division, along with $4 billion in debt and all of its legacy liabilities, into Chemours.
“While Chemours was set up for bankruptcy, DuPont just could not let it happen in its first year, and just prior to its merger with Dow Chemical,” Citron speculates. “If that were to happen, a court might have too easy a time transferring the environmental liabilities right back to DuPont before the spinoff.”
Now that DuPont has dumped its liabilities and a significant amount of debt on Chemours, the spinoff is free…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
