The Monash IVF Group Ltd (ASX: MVF) share price has tumbled 3.5% in morning trade after a surprise announcement out of the leading assisted reproductive services provider.
That announcement revealed that its managing director and CEO James Thiedeman has tendered his resignation in order to take up a new role at a non-competing health care organisation outside the women's health sector.
Mr Thiedeman will remain with the company as he serves his six-month notice, supporting the business to ensure a smooth transition when a replacement is found.
Should you buy the dip?
There's no doubt that Mr Thiedeman has been instrumental in the company's rise over the last eight years.
But I don't believe his exit will negatively impact the company too greatly, if at all. I believe Monash IVF has a strong and experienced management team capable of driving the company's growth further over the coming years.
For this reason I think the drop in Monash IVF's shares today could be a potential buying opportunity.
At just over 15x trailing earnings I feel the company looks reasonably cheap even after taking into account the competitive pressures it faces. So for this reason I would choose it ahead of rival Virtus Health Ltd (ASX: VRT) at this point in time.
