CIBC Reaction to CFO Departure Sirius XM Canada Holdings Inc.
CFO Announces Resignation
What's The Event
Sirius XM Canada issued a press release after the close today
indicating that company CFO Michael Washinushi will be leaving to
pursue another opportunity. Michael will stay on for another month
(until September 4), after which he will act as an advisor to the
company through to the end of 2015 to ensure a smooth transition.
A search has started for a replacement.
Implications
Michael has been a long-standing executive at XSR, having been at
the company for ten years, so his experience will surely be a loss for
the organization. However, his agreement to stay around to the end
of the year, and the company's existing bench strength should ease
this transition.
While market reaction may be negative on this news, we view it as
neutral to our thesis for now as we await a replacement. Sirius XM
Canada remains attractive from a risk/reward perspective, with our
SO rating and $7.50 target unchanged.