Well for one to prove a case against the CEO sale effecting the share price one would have to say it actually was the sole cause of the share price decline.
If one looks at the A2m share price from the start of the year it actually started reached its highs during March(besides the spike in Feb) since then it began a gradual decline.
During May it had a sharp share price correction, then went up and down a bit before reaching a high point on the 29/30 August, all before the CEO sale was announced on the 3rd Sept.
After the share sale was announced on the 3rd the price rose on the 4th, then fell a bit and then rose over the next week or so back to roughly the price on the 3rd Sept before starting a decline until the 11 Oct before rising a bit and finding a rough trading range.
The funny thing here is that if you look at the XAO( All ords) that it actually reached its high on the 29th August and low and behold followed a very similar path to A2m.
Now you can make your own call here but did A2m cause the whole share market to fall or more likely the A2M followed the XAO down?
Yes A2m has fallen more but that was always expected, a high PE stock who people have made plenty of dough on, what are you going to sell, even if you believe in its growth prospects, you can always buy back in, that is the nature of the market. Shares with high PE and high share price appreciation always fall more in a correction.
So when I put two and two together after comparing the facts one could certainly say that it would be very hard to make a case both against the bOD or the CEO that they were in fact the cause of the share price fall and not general market conditions. I think anyone who was reviewing the whole picture would be hard pressed to make a case against the BOD.
Take the emotion out and have a real look at it all together.
A2M Price at posting:
$9.75 Sentiment: Hold Disclosure: Held
(20min delay)