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 Chinese coal miner L&L Energy
So what: L&L's announcement today was that it had appointed an acting CFO. Of course, what that also means is that the company's prior CFO had left. Should investors be as worried as the stock's action suggests? On the face of it, I'm not so sure. The company claims that former CFO Rosemary Wang left for family reasons and will still consult for the company. Filling her spot is David Lin, a CPA and former Big-Four accountant with Arthur Andersen, KPMG, and Deloitte. Lin recently got a shout-out from CEO Dickson Lee in his year-end letter to shareholders as a key add in the company's finance department.
Now what: Yet investors are still jumping ship. The likely reason is that the company has come under fire recently from CNBC commentator Herb Greenberg as he's zeroed in on it as a suspicious Chinese small cap. He fired a first volley at L&L shares in late December and then followed up when the company announced that its shares had been added to the Nasdaq Global Select Market. When a company's credibility is being called into question like this, the last thing that investors want to see is a key executive departing.
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