Q: Hi Team,
Prior to the CEO departure announcement in early July GSY was in a nice uptrend. Since then the stock has struggled gaining any ground; even though last earnings were record as usual and outlook looks fantastic. Do you see the CEO leaving and lack of replacement thus far as the main overhang in the stock performance recently? Any rumors swirling about who might be available to take the job?
Prior to the CEO departure announcement in early July GSY was in a nice uptrend. Since then the stock has struggled gaining any ground; even though last earnings were record as usual and outlook looks fantastic. Do you see the CEO leaving and lack of replacement thus far as the main overhang in the stock performance recently? Any rumors swirling about who might be available to take the job?
5i Research Answer:
We haven't picked up any (believable) rumours. Certainly the uncertainty will hold back some investors from buying. But we would note the stock is still up 74% in the past 52-weeks, so it has not exactly been a laggard. Peer PRL has announced lots of good news and has huge momentum, so it might be taking some of the sector glow here. But at 10X earnings there is still a lot to like about GSY overall.