@CaptainBarnacles @thunderhead1 Back on 23rd June 2021 Bapcor...

@CaptainBarnacles
@thunderhead1

Back on 23rd June 2021 Bapcor hit its all time high of $8.60
The SP was based on a bit of speculation that Bapcor had weathered the Covid pandemic pretty well.

Bapcor released its annual results on 18th August.
On 17th August the SP closed at $8.09
On 18th August the SP closed at $7.70
The result was very good though not quite up to the high market expectations.

What I find in steady state markets is that a company like Bapcor tends to trade about 10% below its most recent peak in the absence of a big news item. So a SP around $7.75 in my mind is about steady state. A closing SP on results day of $7.70 is okay in my book.

The AGM was held on 19th October with nothing of note to worry about. The SP closed at $7.68 that day.
On the following day after the market and analysts digested the AGM the SP rose to $8.07

Again all seemingly rosy in the Bapcor garden.

Then on 23rd November all hell breaks loose with the very unexpected announcement of Darryl Abotomley announcing his retirement in a few months, rescinding the announcement of Feb'21 that said that Abotomley had agreed to stay on until 31st October 2023.

No explanation, just a bring forward by a year and a half of a once planned smooth transition to an abrupt departure.
And today we discover the irretrievable breakdown between the CEO and the Board(as a whole).

WTF has happened.

The business has been chugging on very nicely thankyou. Bapcor is one of the best defensive stocks on the ASX. It has strong moats, lots of pricing power and two major competitors in the same boat.What's not to like?

Maybe it was time for the CEO to retire? Maybe not? Only a select few know.

But whatever, this has been badly handled by the Chair. And this Chair is no dummie who in a previous life ran Mars Australia for 12 years as CEO.

The damage has been done and Abotomley, unfortunately is yesterday's man. This is a shocking way to farewell a 10 year CEO who has, over 10 years, built a highly successful organisation.

Bapcor has a great operation, a great management team that supports the CEO position and will keep on doing what it has done for years. The coming year will see Bapcor continue to grow, the coming holiday driving season will just add to the allure of its business proposition.

I hope the Board appoints a great CEO to replace a great CEO. This will be the defining test of the Chair in her tenure at Bapcor.

I topped up last week believing the low was in. I have another order in to top up again. Bapcor will come roaring back, just don't know when.

Cheers.......D