March 16, 2017

On Thursday, the S&P 500 was down 0.2% and Toronto was up 0.3%.

AutoCanada was up 4.6%. But then after the close it announced two things. One was a two year extension to its big line of credit. The second was the immediate resignation of its President. This was not the CEO. The history here is that the President was a very long-time employee and the new CEO had come in from the outside. I suspect the resigning executive was not happy to have been passed over for the CEO job and anyhow the company did not need both a President and a separate CEO. Unless there is more dissent in the ranks this resignation does not seem likely to affect the company much. The press release thanked the departing executive but it looked totally insincere to me. (Though it claimed to be a sincere thank you. You be the judge.

Toll Brothers was up 2.6% to $37.08. This stock was at $27 (and clearly under-valued) just prior to the U.S. election.