iCar Asia Ltd appoints new CEO: Should you buy?

Source: Wikimedia Commons

iCar Asia Ltd (ASX: ICQ) has announced the appointment of its new CEO this morning, who will replace the outgoing Damon Rielly in June this year.

Often compared to Australia’s dominant online automotive classifieds business Carsales.Com Ltd (ASX: CAR), iCar Asia is the owner of a portfolio of automotive websites across Asia, including in Malaysia, Indonesia and Thailand. In fact, as the owner of 20.2% of iCar Asia’s outstanding shares, Carsales.Com is a major shareholder of the business.

The company today said that while Mr. Rielly will be returning home to Australia (iCar Asia is headquartered in Kuala Lumpur, Malaysia) to spend time with his family after nearly four years in the role, Hamish Stone will take his place. While a change of leadership always has the potential to introduce risks, Stone appears to be a good fit for the business.

Indeed, he was described as an “online automotive marketplace expert”, who “has led online classifieds businesses in Australia, the UK and Netherlands as part of eBay for the last 10 years.” Rielly will remain with the business until Mr Stone begins his tenure to effect a smooth transition.

The shares have traded mostly flat today after the announcement was made and are currently fetching 90 cents each. One of the attractive things about owning the shares is that, if they do fall substantially in price, there is a good chance that would attract the attention of Carsales.Com as a buyer of more shares.

That alone is no reason to own the company’s shares, but when you consider its attractive growth prospects as well, iCar Asia could be worth a closer look.

In additon to iCar Asia, there are a number of other attractive technology businesses trading on the ASX right now. This relatively unknown business is growing rapidly and offers a fat, fully franked dividend! Best of all: you can get the name of this company, FREE! Just click here, enter your email address and claim your free report - no payment or credit card required!

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of eBay. Motley Fool contributor Ryan Newman has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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