Platform Specialty Products Corp Stock Up 12% on CEO Announcement
What: Specialty chemicals maker Platform Specialty Products Corp investors are finally having a good day, with shares trading up almost 13% on Wednesday following news that a new CEO had been hired.
So what: Before today's big gain, Platform's shares were down by about half this year, with the majority of that decline happening since October. The company has been working through the acquisition of U.K.-based chemical company Alent, and there were a lot of questions whether Platform's business model, which is heavily predicated on acquiring products (versus developing them) was working out. The announcement near the end of October that the current CEO, Daniel Leever, would retire once a new CEO was hired, also contributed to the stock's decline.
Now what: The leadership question has now been answered, and Mr. Market is certainly pleased with the hiring of Rakesh Sachdev as the new CEO. However, the questions about Platform's business model remain unanswered, and Sachdev will have his hands full leading the integration of Alent into Platform. That's before factoring in the macroeconomic and cyclical challenges that several of Platform's business segments are dealing with.
The good news is that Sachdev comes with extensive experience in the executive suite, having most recently been the CEO of Sigma-Aldrich until it was acquired for $17 billion by Merck . He will also have the assistance of Platform founder and chairman Martin Franklin, who has said he would take a more active role with the company going forward, following the October announcement that Leever would retire.
This iSecret stock could make this pop look tiny
The world's biggest tech company forgot to show you something at its recent event, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
The article Platform Specialty Products Corp Stock Up 12% on CEO Announcement originally appeared on Fool.com.
Jason Hall has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
Latest Markets Videos
- The $12 Trillion "Once-in-a-Lifetime" Market Opportunity Investors Won't Want to Miss
- J.P. Morgan Says These 3 Stocks Could Surge Over 100% From Current Levels
- Forget Tesla's Battery Day, These EV Stories Are More Important
- ChargePoint, Switchback Energy Acquisition Enter Business Combination Agreement