Activism | Management | Price Crash  | Audit
Member Login

How Snowball Research

Works.

Snowball Research helps you in your idea generation process. We focus exclusively on qualitative methods. Here’s how:

Spotting Ideas in Management Change:

Uncover exceptional CEOs

Every year hundreds of new CEOs are appointed. CEOs who have A+ track record get hidden along with others. You can identify such CEOs.

Date of appointment: June 14, 2016

Summary: A micro-cap bank, Regional Management, appoints former CEO of Citibank North America, as new CEO. During his tenure with Citibank North America, he oversaw $130 billion balance sheet. In comparison, the total asset of Regional Management Corp. is approximately $610 million. Attracting such a top-talent is a big positive for this micro-cap company.

Stock price: Up 160% in two years.

Date of appointment: June 14, 2016

Summary:

I. New CEO: Questionable track record of Mr. Fleming, new CEO : (a) As per the company’s (Nobilis Health) announcement on January 06, 2015, the financial statements for the year ended December 31, 2014, should no longer be relied upon. During that period Mr. Fleming served as CFO. Instead of terminating him, the company has now promoted him as CEO. (b) During his tenure as CEO of Acro Energy, the company’s stock price tumbled more than half, and within one year of his exit, the company filed for bankruptcy.

II. Other concerns: (a) Resignation of CFO and audit firm within a short time frame. (b) Huge CEO turnover in the last 13 months.

Stock price: Down ∇ 79% in three years; Down ∇ 40% in two years

Identify red flags

You get alerted if a company has appointed a new CEO with a questionable track record.

Significant situation

In some cases, “situation” at the time of appointment of a new CEO is interesting, especially when a company is undergoing temporary airplane turbulence.