Q: The Go Easy stock has see close to a 12% drop following the announced CEO transition which has been viewed as negative due to uncertainty in the succession.
Do you expect the stock to fall any further as the transition for Jason Mullins (the CEO) is not expected until the end of the year and Jason will then still have a presence on the Board of Directors?
Do you believe the reaction to the news has had an exaggerated impact on the Stock valuation.
Do you expect the stock to fall any further as the transition for Jason Mullins (the CEO) is not expected until the end of the year and Jason will then still have a presence on the Board of Directors?
Do you believe the reaction to the news has had an exaggerated impact on the Stock valuation.
5i Research Answer:
Considering he is staying on the Board, and also staying as CEO to help with transition, we do think it is a bit of an overreaction. He is well-regarded, but CEOs are allowed to retire. He has made more than $20M in GSY stock and is quite young, so may be looking for other challgenges. We can't really predict prices, but the business is solid and we would expect investors to calm down soon on this issue.