The 4DS Memory Ltd (ASX: 4DS) share price took a 12% dive today after releasing an announcement revealing the resignation of one of the company’s directors.
Still, this doesn’t seem too bad considering 4DS’s shares have returned over 350% over the past 12 months.
After reaching highs of around 27 cents per share in February, its shares now trade at around 18 cents at the time of writing.
4DS share price
What does 4DS Memory do?
4DS is involved with the research and development of semiconductors with the aim of creating an enterprise-grade storage memory for cloud and data centre storage markets.
The company has been around since 2007 and now has a patented portfolio of intellectual property (IP) comprising of 29 USA granted patents that have been developed in-house to create a high-density storage solution.
Director resignation
4DS’s share price sunk today when it was announced board member Jim Dorrian will be resigning from his position immediately.
4DS said Jim will leave due to personal reasons and the company will not be making any more comments surrounding the circumstances of his resignation.
The announcement also indicated Jim will continue to engage with 4DS as a consultant for strategic input if and when the company move towards the commercialisation stage.
Jim remains a significant shareholder of 4DS and still owns over 53 million ordinary shares and 1.25 million options with a $0.052 exercise price.
Summary
It’s never great as a shareholder to see valuable members of a company leaving for any reason. In this case, there seem to be some pretty significant personal matters at hand, which are unlikely to be related to the underlying operations of the company.
That being said, I probably wouldn’t be a shareholder of 4DS just yet.
I often try to look for companies that align with Rask’s investment philosophy, part of which involves identifying businesses within my circle of competence.
Even after just a cursory glance into what 4DS does and what it’s trying to achieve, it became quite clear this is a complex field that would require substantial research to gain a thorough understanding of its technology.
Additionally, we tend to look at companies that are already generating revenues and are on track towards profitability.
4DS is operating in an exciting space, but investing this early on just isn’t my style of investing.
For more reading, I’d suggest getting a free Rask account and accessing our full stock reports. Click this link to join for free and access our analyst reports.
