chart, page-20

A couple of years back I had shares in a small cap. company that suddenly parted company with its chief executive. The announcement was brief and without explanation. The share price took a tumble. Columnist Richard Hemming writing in the Australian at the time said, in part:

"the comany's share price cratered after it announced its Paris based chief executive was stepping down with immediate effect., without any explanation. Small listed companies that are not used to being in the public spotlight are more prone to deliver clangers that leave investors unsure as to whether there are real problems that are unseen....but literally explode.
"Do the falls represent a buying opportunity? When there are big announcement like this, it's not necessarily a public relations problem. All companies lose key executives at one time or another. But it isn't good enough for anyone but the guy up the top to respond to concerns. At times like this investors need to see leadership..
"Until I see that sort of leadership we would be very cautious in recommending a stock to our subscribers. The question therefore is whether or not you should sell? The company has a strong balance sheet and is producing profits. So do the executives know something we don't? If they do, then all the other directors have a responsibility to tell us."

I think a few of Richard's sentiments can be applied to OIL's announcement yesterday.

MM