Here we go again....while the preferred(CDMOP)continues to hold up and trade well, the common is taking it on the chin. Yes we are in the midst of market turmoil with all of the confusion surrounding the trade talks with China, but to be fair, if any company would be unaffected by a trade war, that would be Avid. Even though the exchange averages have taken a heavy hit, there is absolutely no reason for Avid going down other than the "shocking" departure of Roger Lias their CEO, who stepped down for "personal" reasons.
Of course with an absence of information from Tustin, nor any meaningful news coming from IR(Stephanie) one begins to wonder exactly what is happening. The speculation of course begins with...since there is no good news to report, and with the CEO leaving, must mean that there is some bad news that we are not aware of???
Throw in a little market turmoil and it does not take long to hit the sell button and move on to other pastures...greener or otherwise?
Why publicly announce updates coming on 2 large pending contracts a couple of CC's ago, and then go silent and not bring them up again?
Although I find it hard to believe after all of this time, was there some kind of technical hiccup at Avid? Did they somehow manage to bungle these two contracts via a manufacturing glitch? Again hard to believe!
So I am hoping that Richard Hancock will come out and clear the air and provide some kind of a positive update before the next CC to stop this bloodletting.
The preferred tells me there is nothing fundamentally wrong with Avid...the common tells me that retail investors and possibly institutional are starting to run?
Buying opportunity? Where is Steve White now? Ronin?
Hopefully we get some clarity soon.
