Though the second quarter of 2010 was, for the most part, described as unusually strong for the so-called “slow season”, rumors around the web started circulating that ASUS may have actually performed worse than its peers. As a consequence, reports suggested that the CEO, Jerry Shen, had resigned his position on the first of July. Normally, companies don't really bother to comment on speculation and rumors. Still in this case, ASUS did, if only to assure the populace that they were untrue.
Shen had supposedly left ASUS because production shipments were lackluster and the Q2 exchange rate losses were higher than originally expected. According to a report that, unsurprisingly, was made by
Digitimes, ASUS made a point of refuting this rumor. In fact, it was so determined to make that point that made the announcement by means of a public posting on the Taiwan Stock Exchange (TSE).
The Taiwanese PC maker stated that the reports were completely fabricated and that Shen has the full support from the board of directors. No doubt this announcement was meant to halt the rapid decline of its shares. On the stock market, ASUS' price dropped by 7% a day, the daily maximum as it were (NT $16.5, the equivalent of US$0.51), to the point where the actual price was of NT$223 on the first of July. Today, that price dropped even lower, to NT$210, even despite ASUS' reassurance.
The current price was possible because the computer maker only recently completed the spin-off of its subsidiary, Pegatron. TSE managed to set a price of NT$225.1 only a short while ago. At present, it is unknown how things will progress and if market confidence in the company will return any time soon. Granted, the morning session on July 2 saw the shares rebounding to NT$214, as of 11:00 AM, which may, at least, imply a measure of optimism.
Find us on Google+
