Q: Hi,
NPI stock is down almost 10% today on the following news "NPI announced a CEO transition, with CEO Mike Crawley stepping down and chair of the board of directors John Brace moving into the role of interim CEO."
It seems that some investors are not happy with that move... Since it is supposed to be a "transition move" I do not understand the market reaction that seems exagerated...
First question: Am I missing something?
Second question: With what we know now at what price would you feel that NPI is a real bargain?
Thank you
Michel
NPI stock is down almost 10% today on the following news "NPI announced a CEO transition, with CEO Mike Crawley stepping down and chair of the board of directors John Brace moving into the role of interim CEO."
It seems that some investors are not happy with that move... Since it is supposed to be a "transition move" I do not understand the market reaction that seems exagerated...
First question: Am I missing something?
Second question: With what we know now at what price would you feel that NPI is a real bargain?
Thank you
Michel
5i Research Answer:
A CEO change always worries investors. It is a bit of a surprise, but the key here is that there actually is a transition plan in place. The Chairman was the former CEO and the company should be able to handle this transition. But investors like to worry, and selling can cause more selling. We would not say it is a 'non event' but the reaction seems harsh to us.