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Yesterday we published an article on the recent share price movements for industrial 3D printing enterprise The ExOne Company.
Now, the North Huntingdon PA headquartered manufacturer has made an announcement that may explain the increased trading volumes seen in the company’s stock.
ExOne - CEO - James - L - McCarley
ExOne’s current CEO, James L. McCarley, will, “be leaving the Company to pursue other interests and opportunities effective immediately.”
Taking on the ExOne CEO position is S. Kent Rockwell. Rockwell’s most recent job at ExOne was as Executive Chairman, however he previously served as CEO from January 1, 2013 until August 19, 2016. He has been involved with the company since 2007 as an investor and executive.
Appointment - Rockwell - Behalf - Board - Management
On the new appointment Rockwell said, “On behalf of our Board and management team, I would like to thank Jim for his efforts and wish him all the best in his future endeavors.”
What does the share price movement tell us?
Assumptions - Prospects - Company - Markets - CEO
It may be tempting to make assumptions about the prospects of a company based upon the markets reaction to the new CEO. If the share price increases, it could be argued that the incomer is viewed as likely to have a positive effect – and vice versa.
“WE EXAMINED THE SHORT- AND LONG-TERM SHARE-PRICE PERFORMANCE OF 314 COMPANIES THAT NAMED NEW CEOS FROM 2004 TO 2009. OF THE 49% OF COMPANIES THAT SAW A FIRST-DAY RISE, JUST OVER HALF—55%—ALSO EXPERIENCED A LONG-TERM GAIN. AND OF THE 49% OF COMPANIES THAT SAW A FIRST-DAY DROP, ABOUT THE SAME PROPORTION—59%—EXPERIENCED A LONG-TERM GAIN. (FOR THE REMAINING 2% OF COMPANIES, SHARE PRICE ON THE DAY OF THE APPOINTMENT REMAINED FLAT.)”
Article - Citrin
In the same article Citrin explains, “When...
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