Monday, 25 June 2012

Expecting the unexpected as Morrisons FD announces intention to step down.

Morrisons @ 260.7p, -7.7p (-2.76%).

Markets and investors really don't like unexpected news particularly when it adds weight to the information received.
In this case its Morrison's which is now dragging an anchor at 52 week lows following this mornings communication that the Groups Finance Director of the last 7 years, Richard Pennycook, has announced his intention to step down in order to pursue a "portfolio" career ( Directorate Change.).

Despite the shares falling there seems little to read into it other than the loss of a well regarded long serving executive in an influential position. On the plus side is the 12 months notice that he has given and the view that he will be in place to facilitate a smooth transition to his replacement.

This would suggest (to me at least), that there isn't a personal or strategic difference of opinion behind his decision.
As, although I am questioning of the company's direction an internal wrangle made public would not serve any constructive purpose.
That being the case if I was confident of the company's strategy then the current levels might prove to be buying opportunities with the shares already discounting industry woes but once again raises the question of which supermarket to buy.

Related article links:
- Directorate Change

Related posts:
- Morrison's Preliminary Results: "Different and Better than Ever"?
- Supermarket Sweep: Tesco; Morrisons; or Sainsburys?
- Weekend rumours: Morrisons to raid Iceland!

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