Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Forest Oil (NYSE: FST ) jumped 10% today after announcing the CEO would step down.
So what: Chief executive H. Craig Clark will step down immediately and be replaced by board member Patrick McDonald. The company's stock is down more than 50% since January and hit a new 52-week low today. It was time for change at the top.
Now what: McDonald said he would focus the company on the liquid rich Eagle Ford shale play in Texas and focus on selling assets. Forest Oil has racked up $1.8 billion in debt and is planning to sell assets to pay off some of that debt and raise cash. I don't think this makes Forest Oil a buy yet, but if operations improve and assets can be sold for a reasonable value, then the stock could rebound in the future.
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