Shares of Nearmap Ltd (ASX: NEA) have been hammered today, falling another 13.3% after the company announced it was parting ways with its Managing Director, Simon Crowther.
So What: In an announcement after the market's close on Thursday, Nearmap said it has "undertaken a management transition to equip nearmap with the necessary skills and capabilities to deliver on our significant potential".
Indeed, Nearmap provides aerial imagery technology to various business and government customers, empowering them with the ability to make timely and cost-effective decisions. It has so far succeeded in the Australian market and is quickly expanding across the much larger US market.
The company said that Rob Newman, who will replace Crowther, has "deep and specific expertise" relevant to leading Nearmap, while he also has a proven track record of taking Australian tech companies into the US market.
There have also been concerns about Nearmap's culture under Crowther's leadership which some would suggest may have contributed to his leaving the business, although the announcement didn't refer to this at all.
Now What: Today's selloff has Nearmap's shares now trading at just 39 cents, down 53% from an all-time high of 83.5 cents in November 2014. This can largely be attributed to concerns over the company's valuation, together with fears that its growth could be slowing down.
Although these are justifiable concerns (as is a change in management), I believe now could be a great time to buy. Nearmap possesses huge growth potential and, while it mightn't be a risk-free investment idea, the potential rewards certainly appear to outweigh the risks at this price.
The Motley Fool's strict trading rules restrict me from buying shares within two days of talking about the company, but beyond that I will certainly consider adding to my current holding.
