February 22, 2013
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 Orbitz Worldwide (NYSE: OWW ) dropped as much 12%, before bouncing back into positive territory today, after the company named a new Chief Financial Officer.
So what: The online travel-services provider said Mike Randolfi, who is now a Senior Vice President at Delta, will become CFO effective March 11. CEO Barney Harford said Randolfi brings "deep travel experience" and a "proven track record of implementing strategic initiatives to generate strong profit growth."
Now what: It's rare to see a stock move this much simply due to a new CFO, a position often regarded as the No. 2 in a company, but Orbitz has been particularly volatile of late, up 40% since reporting earnings last week, but still down 20% from its 52-week high in August. The company has been struggling to turn a profit, and promised some layoffs and other types of cost-cutting in its report last week. Today's fluctuations seem more like a consequence of the uncertainty surrounding the stock rather than anything having to do with Randolfi.
Don't miss the next update on Orbitz.