CFO Stepping down

[bighomage]

I'm very new to the stock market. I own about 50 shares of Aladdin Knowledge (NASDAQ: ALDN) and it has been doing pretty well. Today, the CFO announced that he is stepping down in September and immediately the stock began to go down. Is this something I should be worried about and sell the stock while I still have a profit on it, or should I just hold onto and accept that it will just probably go down today because of the news?

[michiganfan9]

Anytime news comes out about lower than expected earnings, or in your case a high official resigning you have to expect it to go down big that day. I wouldn't recommend selling it because of that one day if you still think the cmopany looks good in the future.

[DesertCat]

This is a very richly priced stock and it sounds like you don't know what it's true value is. That's a recipe to get out immediately.

If you don't have a decent idea of what the intrinsic value of a stock is, you shouldn't own it.

[parttimepro]

I agree with Desert Cat. If you're just beginning to invest in the stock market, and you don't have any inside knowledge of why their software solutions will succeed better than their competitors, you shouldn't own the stock.

For right now though, the CFO's announcement has already done its damage. Not knowing anything else about the company, it's as likely to rebound as it is to go down further.

[michiganfan9]

[ QUOTE ]
I agree with Desert Cat. If you're just beginning to invest in the stock market, and you don't have any inside knowledge of why their software solutions will succeed better than their competitors, you shouldn't own the stock.

For right now though, the CFO's announcement has already done its damage. Not knowing anything else about the company, it's as likely to rebound as it is to go down further.

[/ QUOTE ]
That is exactly why when Warren Buffett invests he buys companies that he can fully understand. When you buy your stock ask yourself, would you like to own the whole company?
Good Post