Namaste stock hasn’t had the best 2019 thus far. March is being particularly cruel; at $0.78 CAD on the TSXV at the time of writing, N stock has lost over 30% in value this month alone.
A myriad of controversy including the termination of its own CEO has investors running for the hills and who can really blame them? Namaste Technologies (TSXV:N) (OTCQB:NXTTF) is a far cry from the good days of $3 and up.
The most recent blow to N stock arrived only last week when its newly appointed auditor, Price Waterhouse Cooper, stepped down from the job. The global accounting firm had only accepted the role in late September, and now, this step down will cause a delay to the company’s annual report filing.
The fact that no specific reason was given also raised eyebrows. Seldom does a massive auditor step down from a job without good reason, especially if it also means delaying a company’s filing.
Namaste stock dropped 14% on March 6th when the company made the announcement. Ouch.
The timing of this also hasn’t helped Namaste stock because, in February, former CEO Sean Dollinger was terminated.
Accused of fraud in a Citroen Report released last fall, the board led an investigation and concluded it best to let him go. Dollinger denied the accusations and has since made amends with the company—despite being obviously very aggrieved.
He will remain as an advisor, and though management is playing happy families again, Namaste stock has not recovered from the drama. It fell 15% on the day Dollinger was fired. Double Ouch.
Namaste’s future remains ambiguous. The Citroen report and what’s transpired since has caused major trust issues for investors. It is evident to see as well; investors have not been afraid to jump ship on both the occasions detailed above, and in heavy volume.
At the price of $0.78 CAD today, some might say buying Namaste Technologies on a low offers potential. But only if management can win back investor trust. But unfortunately, this appears to be a long way off. It seems more questionable moves are arising (why would PWC ditch the gig for no reason?) and Namaste stock can only go one way as a result.
What do you think? Is Namaste going to be able to repair the damage?
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