Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] New Management - Doesn't it always follow a Top Exec's departure
Date: Tue, 13 Aug 2002 22:18:14 -0400
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Kelly, WON usually focuses on the CEO position, not the CFO, since the CEO is the operational manager. The departure of a CFO unexpectedly can be a negative especially right now because it makes a company's prior financial reporting and current health questionable. But the CFO has little to do with the marketing strategy, acquisition plans, etc of the corporation. It is the Board that may set broad goals, but the CEO that will carry them out. And execution is the key. There is both short and long term implications to a new CEO. Short term, he (sometimes, but not often enough she) comes in and cleans house. Gets rid of all the dead wood. Terminates a product line that was an old favorite five years ago, but hasn't made money since. Cuts personnel staffing. Closes obsolete facilities. Basically strives for a lean, mean, financially sound business. The market usually will like that cost cutting, more efficient (and usually profitable) approach short term. After that, the market looks at the long term plan (and execution) to increase market share, build the business, increase profits. It takes a lot longer for a new CEO to deliver on that, a year or more easily. Sometimes the Board / markets will not give a new CEO that much time, especially if early progress is not being perceived. I read an article over the weekend on the business life expectancy of a CEO, has been dropping lately, and now around 3 years. Not even as long as we give a new President!! - ----- Original Message ----- From: "Kelly Short" <kelly.short@tx.us.neoris.com> To: <canslim@lists.xmission.com> Sent: Tuesday, August 13, 2002 4:23 PM Subject: [CANSLIM] New Management - Doesn't it always follow a Top Exec's departure A question for the group- WON says to look for companies that have new management. However, many group members see the departure of a top exec as a red flag (i.e. CFO). But, wouldn't the addition of a new management member almost always follow the departure of a management member? Where do you draw the line? - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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