Shoals Technologies Group - SHLS

Quick Update

The resignation of a CFO to pursue “another opportunity at a private company” usually doesn’t speak very well to the current financial direction of the company.  Here, the CFO is resigning and the company is assuring investors that his interim-CFO replacement has worked and helped them with their financial reporting in the past.  For some reason they deemed it worthy to note his recent involvement as CFO in something called SAExploration (SAEX) from 2019 to 2020, at which point they went bankrupt.  Not sure that had anything to do with his CFO abilities, but I’m thinking it didn’t inspire confidence and investors naturally sold on that news.  This wasn’t something that I originally considered as part of my thesis for why the name was interesting, but I did point out several reasons in the reporting of certain metrics why something like this may or may not be totally surprising and may herald some more challenging times to come.  The stock is off about 40% since my original spiel, but may have further to fall if some of the other items I listed bear some fruit.