As we alluded to in yesterday’s Match Out Report we felt the 7.7% dip by A2M following the class action news was overdone considering the events, I would have thought Slater & Gordon could have found a board with more obvious transgressions. MM feels A2M may have been guilty of dropping the ball but not misleading investors:
- During the 9-month period in question from August 2020 the company downgraded earnings 4 times, to us it looks like they simply didn’t understand how bad things were as opposed to hiding problems.
- However the number of shares sold by executives during this period does imply they saw trouble brewing on the horizon and felt it was time to bank some big profits, frustrating to some but not illegal.
- The combination of COVID and China trading issues were by far the main contributing factors to the company’s troubles and these issues caught many napping, not just the A2M board.
MM likes A2M around $6
Add To Hit List
