One of the areas of the market I’m tracking most closely right now is the “dark arts”: how management teams and boards can reveal company value and inflection points through how they use compensation to enrich themselves.
Many people are trying to replicate Elon’s playbook of very high risk for high reward. They fail to see that there have been hundreds of thousands of failed Elon’s for the one successful Elon that we know.
But statistics is not something many people understand.
This reminds me how few investors actually read proxy statements. Most people stop at the income statement and earnings call, but the proxy often tells you who's really getting rewarded, for what, and under what conditions. Incentives don't predict the future, but they can reveal expectations long before the market catches on.
Maybe the new CEO is a gambling man :)
Many people are trying to replicate Elon’s playbook of very high risk for high reward. They fail to see that there have been hundreds of thousands of failed Elon’s for the one successful Elon that we know.
But statistics is not something many people understand.
This reminds me how few investors actually read proxy statements. Most people stop at the income statement and earnings call, but the proxy often tells you who's really getting rewarded, for what, and under what conditions. Incentives don't predict the future, but they can reveal expectations long before the market catches on.
It’s a micro cap penny stock. Anything can happen.