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 fashion company Guess (GES +0.00%) fell 10% in early trading today, after two key executives announced their resignations.
So what: J. Michael Prine, CEOO, and Dennis Secor, CFO, said they were both leaving to pursue other interests. There doesn't appear to be any ill will, but the loss of two executives on the same day is troubling for investors.
Now what: Guess is big enough, and experienced enough, to absorb this loss, but investors may be a bit uneasy until new management settles in. For long-term investors, I don't think this changes the investment thesis at all. Shares trade at a 10 P/E ratio, and offer a 3.2% dividend, so I think there's nice value for buyers today.
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