What a few days!
The timing and the way in which this was announced was pretty badly handled by SYR. Those that have followed the company would have always know that at some point TK would have had to have stepped aside to a legitimate CEO with a mining track record. Hence yday announcement shouldn't have come as a surprise but the company should have handled the transition smoother and given the market a direct replacement. The SP has decreased as the headline was terrible as TK is the one who has championed SYR the most since its inception and managed to sell the story to get the cash in the bank. Also we now have a "hire" risk in who is the next CEO and what will his / her qualities and experience be like. Hence the SP has rightly so suffered. Truth be told though if SYR is going to the be the largest graphite mining co in the world and hold a unique position in the supply chain by dealing direct as well as through trading houses and also processing their own spherical then being a local stock broker is hardly suitable credentials.
TK has said he will stay at the company and work on the spherical G and anode side of things. This can only be good for the company that is now 100% focussed on that rapidly growing part of the business. Don't forgot we also have a vanadium resource to get into production as well as get online some spherical plants (one or maybe more). Both of these are huge jobs in themselves and would be more than enough for a couple of guys to look after.
Hence after digesting and after SYR announce a new hire the market will begin to see that this is infact a positive step and yet another step in the companies maturity as it evolves into a legit, fully functioning billion dollar mining company with thousands of staff.
For those who tout other graphite stocks instead of gloating at the short term correction I would instead be worried as this news will again move SYR away from speccy / spivvy status and actually into the big leagues. So all those saying the company will collapse because HZR will take over or MNS or VLT or whatver you are living in dreamland. The CEO's of these companies would give their left testicle to be in the position SYR is in whether that is market cap wise, client base wise, insto support wise, mou wise, etc etc etc
One word of caution is that I wouldn't be picking any bottoms yet. There was significant short interest in the market prior to this announcement and now we have new shorts as well as weaker hands selling. I would like the SP to settle down for a bit before entering - one would like to see a sustained show of strength before getting in or adding. Next support is $3.5/$3 and $2.5 so there might still be some short term pain.
(20min delay)