The Globe and Mail reports in its Wednesday edition that RBC analyst Geoffrey Kwan questions Home Capital Group's "unexpected" decision to dismiss chief executive officer Martin Reid without naming a permanent successor.
The Globes Christina Pellegrini writes that Mr. Kwan says it is "interesting" that neither former CEO Gerald Soloway nor former chief financial officer Robert Blowes were named interim CEO. Both former executives are still directors of the company.
Industrial Alliance analyst Dylan Steuart says, "While a management restructuring of an underperforming company can often be a positive, the large amount of uncertainties surrounding HCG point to continued risks in the near term." Mr. Steuart adds, "The uncertainty surrounding earnings development (particularly while a CEO search is underway), and potential overhangs regarding recent OSC investigation into company disclosures lead to a continued cautious view."
Interim CEO Bonita Then has a background in consumer products and food and was formerly an executive at Specialty Foods and Humpty Dumpty Snack Foods. The Globe's Craig McGee recommended buying Home Capital in the Number Cruncher column on March 7, when it was worth $25.64.
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