The MD resigning is both good and bad, and it doesn’t really matter whether she resigned or was pushed out, what matters is that action has been taken by the Chairman and the board to address a problem.
I feel the market will react positively to this decision, as clearly the outgoing MD’s end results have not been the best, albeit she may have contributed significantly behind the scenes in consolidating the operations of the business as reported.
What will probably work well moving forward is a combination of old Candle business knowhow, which the Chairman can deliver, coupled with some new thinking which a new MD can bring to the table.
Maybe returning to a more proactive acquisition business model has some merit again, particularly since the company is cashed up, and many businesses out their represent good buying value!
This could represent a buying opportunity, as I believe numerous factors are realigning themselves for Clarius, i.e. this action by the Chairman, the market turning to the upside, the true value of the stock, and in my opinion an overselling of the stock. I see this stock settling in the mid $1-$2 range in the very near future.
CND Price at posting:
71.2¢ Sentiment: Buy Disclosure: Held
