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What: Shares of telecommunications products and service provider Tekelec
So what: In news the market is overlooking, the company lowered full-year earnings guidance to $0.62 to $0.67 from a view of $0.75 to $0.80 after another reduction in November. The market shook off the bad news, though, and applauded loudly when Frank Plastina announced he was stepping down. Krish Prabhu will take over as CEO.
Now what: That has to be an ego blow when the market bids up your stock 11% just because you are stepping down, but Mr. Market wasn't a fan of Plastina. To me, the more concerning news was the lower guidance and continued delays of the company's project in India. I'm selling the move today given the weaker fundamentals, something that I think should be moving the stock down today.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his Motley Fool CAPS picks at TMFFlushDraw.
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