On Tuesday, markets rebounded somewhat and the S&P 500 was up 0.2% and Toronto was up 0.6%.
West Texas oil was up about 2.5% and sits at U.S. $70.63 which is close to $94 Canadian which is actually not at all a low price for oil if you look at say the average of the past 15 years. The higher oil price is likely why BHP Billiton was up 3.2% in New York.
After the close, AutoCanada announced that Arlene Dickenson who became a director only in 29017 is resigning from their Board “to devote her time towards other significant opportunities.”
While the press release suggests a friendly departure, it’s a bit difficult to believe the reason stated. Perhaps she was not in alignment with the thinking of other Board members especially regarding the new special committee (to address strategic alternatives) and or the recent large U.S. acquisition.
In the absence of further information I would view this departure as a red flag. I don’t intend to sell any shares on this news but it strikes me as possibly a negative development.