Q: Do you see the recent poor sector sentiment and change in CEO as a buy the dip opportunity, or would you exercise caution here and wait before adding to a position, or sell and move on to other opportunities?
5i Research Answer:
The CEO is leaving due to a health issue, and the new CEO has lots of financial sector experience. While not great news, there is nothing nefarious here and the company should be able to manage the transition well. We would see it as a partial buy opportunity. There are still challenges and there could still be year-end or tax loss sales to come. We would chip away rather than buy all at once. We would not view it as a SELL on this news.