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Summary
Flannery had a major opportunity yesterday. The plan was outlined, but it just wasn't enough. The dividend cut was significant, but other measures seem minor, if not laughably trivial. The underlying problem is that profitability has collapsed, and there seems little hope of any improvement within 6-12 months. In fact, it would not be a surprise to see things further deteriorate.
Even some within the mainstream, including the Cramer, are coming around to the realisation that its not so much about a possible recovery in 2018, but rather not until at least 2019. Cramer was borderline pissed this morning, saying 'I've been had'... no less than half a dozen times.
Flannery himself suggested that investors could buy on a 3-5 year outlook, but not short term. That kind of talk did not please Mr Market. Today's price action into the $17s, confirmed that after Flannery's appearance on CNBC, Mr Market is simply not inspired.
Technically, the next major support is not until the $13s. Sure, there will probably be a few powerful bounces along the way, but broadly, the $13s do very much look on track.
