ZAGG Is in Troublehttp://www.fool.com/investing/general/2012/08/20/zagg-is-in-trouble.aspx Rick Aristotle Munarriz
August 20, 2012
There's always something fishy when a company waits until Friday night to issue a press release, and that's exactly what gadgetry accessories specialist ZAGG (Nasdaq: ZAGG ) did over the weekend.
ZAGG shares opened nearly 16% lower this morning on news that that CEO Robert Pedersen would be stepping down. ZAGG announced the departure more than an hour after last week's final closing bell.
There's no need to speculate about the abrupt decision. A margin call last week forced Pedersen into selling 515,000 shares of the company's stock at an average price of $8.22.
The $4.2 million sale was probably triggered after the stock took a hit earlier this month on disappointing quarterly results. Revenue growth of 59%, profitability per share surging 80%, and revising its guidance higher in its second quarter weren't enough to win over skeptics.
ZAGG has carved a cozy living making smartphone screen protectors and tablet keyboards for Apple (Nasdaq: AAPL ) and Android products, but there has never been a