Last friday, MTY Food Group delayed it's planned fourth quarter results after some whistleblower's complaint.
We don't have any more details about the complaint. However, the market didn't like this delay at all: the stock lost more than 8%.
So, what should you do, if you own the stock?
The answer is: I don't know. LOL. It depends on what's the exact reason why there's a delay.
Such delayed results happen very rarely. We don't really see that kind of stuff with great companies. I think I've seen that with Nobilis Health (which was a promising stock a few years ago but is now a crappy penny stock).
So, I believe that it doesn't smell good. But I may be wrong.
Here's how I would react, given three options:
1- If I didn't own the stock, I'd probably buy a small position (2-3% of my portfolio);
2- If I had a big position, I'd probably sell a good percentage of it;
3- If I had a small or medium position, I'd probably wait and see.
When there's smoke, there's usually a fire. But maybe this is an exception. Anyway, whatever everybody says about a specific company, we should never trust entirely any CEO. Even if he looks like a quiet gentleman with a very reasonable income.