One of my institutional clients had a call today with the company and reported back to me. I don't have any new details except on management. I don't believe that the story changed at all this quarter. The company's goals remain similar to before - to get to a 5% operating margin by the end of 2012.
I want to be careful about the way I say this, as I wasn't on the call, but I have reason to believe that the CEO change will be internal. It is my understanding that the Board is looking outside, but, I have to assume, given the short time-frame, that the next CEO will come from inside. I believe that the CFO is capable while the appointment of Mike Noelke would be very favorable.
So, this remains a deep-value turnaround that is turning around too slowly, but without any real downside threat absent a global recession. I do need to reformulate my target somewhat lower, but I believe that the upside from the current price is high enough to justify patience. It's a big enough position - I won't be adding in Top 20.
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