AS I said earlier, 49-50 is too high a level to be entering Ausgroup. Sell --- those who did now can consider re-entering at 43 cents. A little while more as the stock is doing 44.5 cents currently.
SINGAPORE, May 31 (Reuters) - Shares of Singapore-listed Ausgroup fell as much as 5 percent on Tuesday to a near one-month low after it said its chief executive officer had resigned.
At 0235 GMT, shares of Ausgroup were traded at S$0.40 with over 3 million shares changing hands.
Ausgroup's CEO John Sheridan will be replaced by Stuart Kenny as the acting CEO with effect from May 31 while the company looks for a new chief executive.
"The resignation was unexpected, and its share price is reacting to the uncertainty in what the group's direction will be now," said CIMB analyst Yeo Zhi Bin. (Reporting by Charmian Kok)
hey thanks,
saw the announcement this morning, threw out my position this morning as well.
Just wanted to ask, up till 29th May, is the chart emitting a bullish flag or a descending triangle?
Found this story published 3 years ago. The old boss and the new boss back then. Now the old boss is coming back. Kenny sold his shares – a big chunk – at the right time before the damn crisis. Let’s see if he has the old wizardry that enabled the stock to become a multi-bagger in the hey days.
AUSGROUP: "No impact from subprime mortgage woes"
8m shares changed hands and the counter fell 8% on the back of unexpected resignation of Ausgroup MD, John Sheridan. John has been with the group for three years. Stuart Kenny (ex-MD for four years until Jan 2008 & current Non Executive Director) will take over the helm temporarily. Ausgroup will also commence search for a new CEO.
What we think:
Though John had a somewhat shaky time with the group (his appointment coincided with the Financial Crisis), it seemed that he has managed to steady the boat recently. Initial talks with Stuart suggest that business will be as usual. Plans for a dual-listing will go ahead. Process improvements and people performance initiatives which John had implemented during his time will remain. However, judging from market's reaction, we agree that the street and us need more clarity in where the company will be going forward.
What you should do:Pending review, we keep our earnings estimates and NEUTRAL call.
Though the change in management was surprising, it does not change the brighter prospects for the company. Order pipeline remains healthy and we anticipate a better FY12 for the group.
