Why Did Xinhua Finance Media's Singhal Suddenly Resign?

| About: Xinhua Finance (XFML)

Xinhua Finance Media Limited (XFML) announced late Friday evening "Mr. Shelly Singhal has resigned from the Boards of both companies, as well as from all executive and managerial positions. His departure is immediate."

I still remain in the dark about the true reason behind Singhal's resignation. Looking back, I suspect some people already knew that news back on Wednesday, as there was a large number of shares unloaded midday. By Thursday and again Friday, large sellers were apparent. And the stock price dropped by almost 20% over those three days, wiping out all the gain from the reaction to the good quarter. However, there was no news or rumor reported in the media. The company has been very unresponsive.

Now looking forward, whether the harsh reaction is deserved is a question. The conclusion has to do with why the guy left so suddenly. He was not a CFO anymore and he still held a substantial percentage of shares in the company. Would anyone care to shed some light?

Disclosure: Author has a long position in XFML

XFML 3-mo chart