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 Isle of Capri Casinos (NASDAQ:ISLE) hit a cold streak on Friday, falling 14% after the company announced a surprise management change last night.
So what: The casino chain said it eliminated the executive chairman position held by Jim Perry and named current vice chairman Robert Goldstein (non-executive) chairman of the board. It also removed the position of the position of chief strategic officer and moved current CSO Eric Hausler to chief financial officer. CEO Virginia McDowell explained the move as an effort to "streamline our business and look for more efficient ways to operate our business." The company also eliminated several other senior positions, saving the company $2.5 million a year.
Now what: The stock seemed to sell off because investors believe the management shift doused the likelihood that Isle of Capri will get acquired. The regional gaming company has underperformed the industry in recent years as competition has stepped up, with more states legalizing gambling. Gaming and Leisure Properties was rumored to be interested in purchasing Isle of Capri's 15 properties, but the management shakeup may have cooled off the deal, as it's odd to see major changes in leadership ahead of M&A activity. Before Friday's news, shares of Isle of Capri had jumped more than 50% since mid-June on rumors of a buyout.
Your credit card may soon be completely worthless
The plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.
Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.