Demand for shares of Vocation Ltd (ASX: VET) has cooled off today with the stock having retreated 10.8% to 16.5 cents. Still, investors shouldn't be complaining with the stock still sitting 109% higher since Thursday.
Although Vocation is still facing plenty of issues which it will need to overcome, investors have clearly become more confident in the company's future since it announced the appointment of Mr Stewart Cummins as its CEO. Cummins has developed a strong reputation for his ability to turn embattled companies around, which is exactly what Vocation needs right now.
The stock plunged as low as 6.8 cents nearly three weeks ago, down from $3.40 in September, following the loss of nearly $20 million in key funding from the Victorian Government which led to numerous profit downgrades and even a series of investor class actions. Vocation was forced to undertake a strategic review which resulted in the sale of a number of its key businesses.
According to the company, Cummins played a key role in that strategic review and will also help determine over the next few weeks how the company will progress in its trimmed down form. While investors need to remember that there are still plenty of risks facing the business, conditions have certainly improved compared to earlier in the month.
