Domain Holdings Australia Ltd shares crushed on shock CEO resignation

One of the worst performers on the local market on Monday has been the Domain Holdings Australia Ltd (ASX: DHG) share price.

At the time of writing the property listings company’s shares are down 12% to an all-time low of $2.92.

What happened?

This morning Domain, which was spun off from Fairfax Media Limited (ASX: FXJ) in November, announced the resignation of its chief executive officer.

According to the release, Antony Catalano has tendered his resignation due to family commitments.

Chairman Nick Falloon stated that: “Antony informed the Board that over the Christmas break he had realised that the demands of his role and his absence from the lives of his family were proving more challenging than he had expected and he had decided to put his family first.”

A global search for a new CEO has commenced, but in the interim Mr Falloon will act as Executive Chairman. The company’s senior leadership team will report to him to ensure the continuing implementation of Domain’s strategy.

As well as this bombshell, the company took the opportunity to update the market on its trading, advising that it expects to report digital revenue growth of 22% against the same period last year and total revenue growth of 13%. This was in line with the guidance given in September.

Should you buy the dip?

I’m still undecided on Domain and industry peer REA Group Limited (ASX: REA) due to Australia’s cooling housing market.

Though, admittedly, Domain does look a lot more attractive after this sizeable decline.

However, for now I plan to sit tight and wait until it releases its half-year results on February 19 before making an investment. At that point investors will be able to decide whether Domain’s shares are trading at a a fair price for its growth rate.

Until then, investors may want to consider one of these high-flying blue chip shares with enormous growth potential.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!