This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The Five Dumbest Things on Wall Street This Week: July 20

Stocks in this article: GDIEDULIMEHBCJPM

5. Pennypacker's Petulance

What the heck happened to Gardner Denver's (GDI) CEO? Did Barry Pennypacker not realize all the pennies he would lose by suddenly packing up and shipping off?

Shares of the industrial compressor maker unexpectedly compressed Monday, falling 9% to $48 after Pennypacker, who had been in the top spot since January 2008, shocked investors by resigning three days before the company's second-quarter earnings release. The company, which declined to discuss Pennypacker's dubious departure, said Chief Financial Officer Michael Larsen would serve as interim CEO while its board searches for a full-time successor.

In case you were wondering, Pennypacker owns over 43,000 shares of the company's stock as of this past March, so his storming off cost him more than $215,000 in addition to his $6 million a year salary.

Yes indeed, Pennypacker's petulance proved quite painful to his personal pocketbook. And we're not just saying that because it's fun to say.

As to what the folks on Wall Street are saying, well, they too were caught flatfooted by Pennypacker's abrupt exodus. Nevertheless, the analysts following the stock seemed fairly unified that his, well, abrupt nature probably had something to do with it.

"His aggressive style appeared to create conflicts between the board and some of the executive team, and management turnover has been high under his leadership," wrote Robert W. Baird analyst Michael Halloran.

In our view, it's understandable for investors to sell first and ask questions later considering the number of CEOs recently booted for inappropriate sexual relationships or some other kind of lapses in judgment.

And Pennypacker should have remembered that obvious fact before impetuously bolting and bringing everybody else down with him.

So whether or not his prickliness was the real reason for his leaving is irrelevant. Until proven otherwise, we say Pennypacker acted like a putz.

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,162.25 +187.94 1.11%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,568.3010 +19.0750 0.42%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs