ViacomCBS Shows Signs Of Major Bottom

Shares of ViacomCBS Inc (VIAC) may finally be putting in a bottom. For the last three weeks, a major deleveraging event has occurred following the Archegos Capital collapse. That collapse caused other funds to have to deleverage, creating a constant stream of selling in shares of ViacomCBS. Today is showing the first signs of lack of sellers. Should the selling truly be over, ViacomCBS has an upside to its first target of $48.25. A break of that takes investors to the second target of $61.00, and a break of that takes shares of ViacomCBS to $70.05. At a current forward P/E of 9 with a dividend near 2.50%, this is a value play in a market where the S&P is trading at a P/E over 23. For ViacomCBS to confirm the selling is done, look for a second up-day tomorrow. If that occurs, the deleveraging should be complete and ViacomCBS has a significant upside.

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