stock price of i2 Supply Chain software
took a pounding this week, dropping at one
point almost 30% after the company reported
quarterly results that were somewhat disappointing
to analysts, combined with the news that
CEO Michael McGrath would retire at the
end of the year.
took the second part of the news as being
related to the first, but an i2 investor
relations manager told Supply Chain Digest
the two announcements were totally unrelated.
McGrath had been thinking about retiring,
and would have held off the announcement
except that it had become a “material
issue” based on more frequent questions
from Wall Street about his plans. Therefore,
his personal decision had to be disclosed,
making the two seem somehow linked.
credited with righting i2’s financial
ship during his little over 2-year tenure
as CEO, where he had previously been on
the board of directors.
the results really were pretty decent, just
below the famous “consensus estimates,”
causing the share price to tumble. To ex-New
York Mets outfielder Lenny Dykstra, now
columnist for TheStreet.com, the stock is
a solid buy at these levels.
growth in the past year should continue
this year,” Dykstra wrote. “With
the earnings release, management did not
change guidance for the 2007 fiscal year,
which is a promising sign for a company
that just got slapped. I find it appealing
that i2 didn't bail out and guide lower,
as this would have been the easy thing to
do with its stock hammered.” (See
Options Play on i2's Bloodletting).
positively a recent deal between Costco
and i2 for a hosted transportation management