Liberum Research’s executive turnover data for July 2014 continued to maintain a positive trend for North America’s economies. CEO, C-level and Board of Director changes monitored by Liberum saw high percentage increases from a year earlier for the same month as well as increases from the previous month of June 2014. The only category that experienced declines was CFOs. In totality, the July executive turnover numbers and overall monthly job growth and level of unemployment continue to point in a positive direction for the North American economy. Both ADP and the U.S. Labor Department’s Bureau of Labor Statistics (BLS) released their monthly employment numbers for July. While neither report was fabulous, the trend continues to remain positive. Liberum expects this will be the case through the Fall months.
ADP’s Employment Report for July 2014 stated,
Private sector employment increased in all four major regions and all nine
U.S. Census Bureau Divisions during the month of July 2014. The ADP National Employment Report(R) reported total U.S. private sector employment increased by a total of 218,000 jobs from June to July.
The U.S. Department of Labor’s Bureau of Labor Statistics (BLS) Employment Report for July stated,
Total nonfarm payroll employment increased by 209,000 in July, and the unemployment rate was little changed at 6.2 percent, the U.S. Bureau of Labor Statistics reported today.
Job gains occurred in professional and business services, manufacturing, retail trade, and construction.
Both the unemployment rate (6.2 percent) and the number of unemployed persons (9.7million) changed little in July. Over the past 12 months, the unemployment rate and the number of unemployed persons have declined by 1.1 percentage points and 1.7 million, respectively.
Below is a breakdown of Liberum’s key executive category percentage changes for July 2014 compared with July a year earlier and the previous month of June 2014.
Below are the overall turnover totals for July. The information is just illustrative of how institutional investors could view executive turnover and its possible relationship with a company’s performance. Using Liberum’s database could offer a totally new perspective on investment and is a potential way to come up with unique special situation opportunities.
79 COMPANIES WITH CEO CHANGES WORTH RE-EXAMINING
According to Liberum’s Management Change Database, a total of 225 CEO related changes occurred during July 2014. Here are 79 from the time period that caught my eye. By significant, I’m looking for situations where I think a particularly strong or weak choice has been made – given the apparent current state of the company – or where there is an interesting special situation.
DATE COMPANY TICKER EXCHANGE MARKET CAP $ MILLIONS
07-11 Accretive Health ACHI OTC 911
07-01 Actavis, Inc. ACT NYSE 38959
07-01 Alere Inc. ALR NYSE 3256
07-17 Amber Road, Inc. AMBR NYSE 384
07-18 American Apparel, Inc. APP NYSE 189
07-14 American International Group, Inc. AIG NYSE 79638
07-24 Arno Therapeutics ARNI OTC 35
07-10 Aurcana Corporati AUN CVE 52
07-08 Axion Power Intl AXPW OTC 32
07-21 Calibrus Inc CALB OTC
07-31 Canadian Imperial CM NYSE
07-01 Cannabis Sativa, CBDS OTC 94
07-16 Cannabusiness Gro CBGI OTC
07-22 Cannlabs Inc. CANL OTC
07-23 Cash America International, Inc. CSH NYSE 1305
07-07 Cca Industries, I CAW NYSE 25
07-02 Changing Tech CHGT OTC
07-07 Clean Diesel Tech CDTI NASDAQ 30
07-30 Clean Enviro Tech CETC OTC 883
07-09 CryoLife, Inc. CRY NYSE 260
07-28 Darden Restaurants, Inc. DRI NYSE 6203
07-30 Dendreon Corporation DNDN NASDAQ 329
07-02 Deq Systems Corp. DEQ CVE 19
07-02 Echo Therapeutics ECTE NASDAQ 27
07-03 Efactor Group Cor EFCT OTC 50
07-29 Eltek Ltd. ELTK NASDAQ 15
07-07 Empire Global Cor EMGL OTC 20
07-21 Ezcorp Inc EZPW NASDAQ 517
07-11 Fuelstream Inc FLST OTC 188
07-09 Gaming Partners International Corp. GPIC NASDAQ 66
07-29 Genworth Financial, Inc. GNW NYSE 8070
07-08 Headsup Entertain HDUP OTC
07-02 Horizon Lines Inc HRZL OTC 14
07-22 Integrated Drilli IRIG OTC 28
07-16 Intelgenx Technol IGX CVE 40
07-28 Jgwpt Holdings In JGW NYSE 142
07-01 Leidos Holdings, Inc. LDOS NYSE 2888
07-08 Lexicon Pharmaceu LXRX NASDAQ 855
07-31 MAXIMUS, Inc. MMS NYSE
07-30 Meadowbrook Insurance Group, Inc. MIG NYSE 309
07-24 Medbox Inc MDBX OTC 432
07-24 MGPI Ingredients, Inc. MGPI NASDAQ 146
07-10 Micronet Enertec MICT NASDAQ 25
07-24 Neogen Corporation NEOG NASDAQ 1619
07-28 Neurokine Pharm NEUKF OTC 1
07-18 Neurotrope, Inc. NTRP OTC 22
07-31 Northsight Capita NCAP OTC 48
07-28 NTELOS Holdings Corp. NTLS NASDAQ 269
07-02 Omnicare, Inc. OCR NYSE 6575
07-24 Pacific Continental Corporation PCBK NASDAQ 248
07-09 Petromaroc Corp 0LZ FRANCE
07-29 Powerdyne PWDY OTC 2
07-21 Purespectrum, Inc PSRU OTC 263
07-30 RealNetworks, Inc. RNWK NASDAQ 276
07-29 RMG Networks Holding Corporation RMGN NASDAQ 26
07-01 Santa Fe Gold Cor SFEG OTC 8
07-17 Scio Diamond Tech SCIO 20
07-24 Sierra Metals Inc. SMT TORONTO 283
07-08 Sierra Monitor Co SRMC OTC 16
07-31 Silver Predator C SPD CVE 4
07-18 Solera Natl Banco SLRK OTC 13
07-29 Sollensys Corp SOLS OTC 6
07-21 Sterling Group Ve SGGV OTC 3
07-24 Suburban Propane Partners, L.P. SPH NYSE 2716
07-03 Sun Bancorp, Inc. /NJ SNBC NASDAQ 372
07-31 Target Corporation TGT NYSE 38383
07-10 Team, Inc. TISI NYSE
07-21 Tesco Plc TSCO LONDON 222
07-31 The Bon-Ton Stores, Inc. BONT NASDAQ 201
07-21 Tractor Supply Company TSCO LSS 8986
07-21 Trans Energy Inc TENG OTC 56
07-29 Turner Valley Oil TVOG OTC 889
07-29 Vantage Health VNTH OTC 18
07-01 Vape Holdings Inc VAPE OTC 23
07-10 Vapor Hub Interna VHUB OTC 9
07-23 VirtualScopics, Inc. VSCP NASDAQ 12
07-12 Wanderport Corpor WDRP OTC 1
07-07 WebMD Health Corp. WBMD NASDAQ 1953
07-17 Zhone Technologies, Inc. ZHNE NASDAQ 121
C-LEVEL MANAGEMENT CHANGE STATISTICS
GRAND TOTAL – 1570
TOP INDUSTRY SECTORS
> Drugs/Biotech – 155
> Banking – 149
> Business Services – 103
JULY 2014 CEO CHANGE STATISTICS
GRAND TOTAL – 225
TOP INDUSTRY SECTORS
> Drugs/Biotech – 24
> Business Serivces – 18
> Banking – 15
JULY 2014 CFO CHANGE STATISTICS
GRAND TOTAL – 158
TOP INDUSTRY SECTORS
> Drugs/Biotech – 22
> Banking – 15
> Business Services – 13
> Energy – 13
JULY 2014 BOARD OF DIRECTOR CHANGE STATISTICS
GRAND TOTAL – 556
TOP INDUSTRY SECTORS
> Drugs/Biotech – 62
> Banking – 53
> Energy – 32
Investors need to diligently monitor key management changes. Certain management changes should be viewed as a “special situation” that can have a direct and major impact on a company’s performance and share price.
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