Q: If the market spooks with the news of the sudden CEO leave of absence would you be a buyer and at what price?
Thks
Thks
5i Research Answer:
**edited for addition
The issue here is that details are scarce. We never like a CEO leaving 'immediately' but LMN does indicate it is 'temporary' as well. It could be a health or personal issue with a family member, and we doubt more details will be forthcoming. We will believe the company here and assume it really is temporary. The interim CEO seems well-qualified. Mr. Garcia has been instrumental with acquisitions, though we might expect a deal pause until this issue is resolved. We would be OK buying on panic sell scenario in the $37 range.