GrubHub’s (NYSE:GRUB) CEO Killed His Company and Investors
CEO Matt Maloney last week found a new way to destroy the wealth of investors in Grubhub Inc (NYSE:GRUB).
How: Mr. Maloney urged supporters of President Elect Donald Trump to quit the company he leads, or hang on, will not lead for long.
The company’s stock dove after Mr. Maloney’s e-Mail was leaked and triggered a boycott movement that swept through Twitter (NYSE:TWTR) with the hashtag #boycottgrubhub.
Twitter users speculated that Mr. Maloney violated his employees’ rights by discriminating against their political views.
Mr. Maloney’s leaked e-Mail Wednesday said he rejects Donald Trump’s “nationalist, anti-immigrant and hateful politics” and that anyone who disagrees should immediately resign “because you have no place here.”
He scrambled, backtracked, but too late, the damage was done.
The stock was down 5% by the end of Friday to a 4 month low of 35.25/share. If the stock breaks support at 32.07 it is headed due South to 23.53 the 25 May 2016 low.
Mr. Maloney later issued a statement saying his e-Mail advocated for inclusion and tolerance and that Grubhub does not discriminate based on political beliefs.
Expect massive shareholder lawsuits naming Mr. Maloney personally, plus the board demanding his resignation.
Chicago-based Grubhub connects online customers with takeout restaurants in the US and London.
|NYSE:GRUB||35.31||11 November 2016||-1.79||36.2||36.21||34.66||5,466,300|
|HeffX-LTN Analysis for GRUB:||Overall||Short||Intermediate||Long|
|Bearish (-0.33)||Bearish (-0.38)||Bearish (-0.42)||Neutral (-0.19)|
Have a terrific weekend.