AEM share price in trouble!
Lifetime Membership What an absolute disaster. Barely a month into 2024, AEM share price plunged by 19% following the shock announcement of a shortfall in inventories that would likely torpedo the Group’s profits for FY2023. The latest fiasco came barely 6 months after the outrageous revelation of the US$20 million arbitration settlement with Advantest. Needless to say, all hell broke loose for AEM share price. Question now is: how will AEM share price unravel in 2024?
Given the meltdown in AEM share price, investors have every right to demand accountability from the management for this awful mess. In my opinion, the current CEO should take responsibility and offers to resign. Under his tenure, Lattice Innovation was acquired and had attracted the US$20 million settlement with Advantest, causing a crisis of confidence in AEM share price for the large part of 2023. And now, the company is struggling to cope with the fallout from the inventory shortfall. To compound misery, the press releases over the past two weeks raised more questions than answers for investors.
As a shareholder of AEM Holdings, the inventory shortfall saga left me absolutely flabbergasted. Obviously, the incident indicated a lack of robust internal control as the management shared that “the initial investigation into this issue attributes the shortfall to human error in transactions with the Group’s ERP system during the migration of production to the Group’s Penang facility from Singapore”.
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