Why Amira Nature Foods Ltd. Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Amira Nature Foods were looking healthier today, gaining as much as 11% after the company named a new chief financial officer last night.
So what: The maker of natural foods products announced that Bruce Wacha will take over as CFO on June 2. Wacha most recently served as a strategic adviser to Amira at Deutsche Bank, where he was previously a director in its global consumer group. Amira stock has been highly volatile in recent months as some short-sellers have accused it of fraud and nearly half of the company's shares have been sold short.
Now what: Amira has had its share of trouble. India's Commerce Ministry blacklisted it and two other companies for violating a rice export ban in 2008-09, though no criminal wrongdoing was found. A short-seller group, Arihaan Capital, has also attacked the company on several occasions, accusing it of misstatements in its SEC filings and failure to disclose a related third party, among other claims. None of its claims against Amira have been proven, however. Amira's volatility stems from being pushed by short-sellers and momentum traders, and it likely accounts for part of today's wild swing. However, investors also seem to be hoping that Wacha will help ease the fraud concerns. We should hear more from the company about these matters when Amira reports earnings sometime in June.
Amira was once a multi-bagger. Will this stock be your next one?
Give us five minutes and we'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.
The article Why Amira Nature Foods Ltd. Shares Jumped originally appeared on Fool.com.Jeremy Bowman owns shares of Amira Nature Foods. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. 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.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.