Roughly twice a year, I try to do a piece in my “Trite Buffett” or “Trite Munger” series (the most recent one was at the start of this year). The premise behind the series is simple; Munger and Buffett have said so many things that I’ll initially think are hokey (and they probably are)…. but five or ten years later I’ll stumble on a situation or my understanding will evolve and I’ll realize how much wisdom was packed into their hokey phrase.
I get really mad when I register to ask a question, am acknowledged by the prompt system, only to be serenaded by the "we have no further questions at this time, I'll turn the call back to management for closing remarks" several minutes later.
I had one notable such experience last week. The company is covered by multiple analysts but performance has been so dismal that only one bothered to show for the call. Management ended the call at the 25 minute mark after taking two questions from the analyst, and had the nerve to thank the analyst for his "insightful questions" concluding "it always helps when he asks them and allows us to further explain our business". "And for the rest of you listening, thank you". Yeah, thank you for putting your had earned capital at risk, analyst questions may be helpful in explaining our business, but please don't bother us with any of your questions.
The company is consistently profitable on an annual basis with a new but currently non-revenue-generating product that on a standalone basis is potentially worth multiples of its current market cap, yet the stock trades at a discount to book. The core business is admittedly lumpy and unpredictable - unpredictable at least to management - so maybe the fault is in our stars, it's the kind of business that will never be correctly valued by fast money public markets. On the other hand, a management team in these circumstances that declines investor questions is a huge red flag.
Let me know if you'd like to discuss the opportunity, it's been written up - at least twice - by Chris.
You are preaching to the choir; I hate how companies act like their calsl are some sacred events that only sell side who needs to stay on their good side shoudl get to ask questions on
Insightful post, thanks for sharing! Should take a look @ Life360 (360-AU). Awarding RSUs to mates, related-party transactions, attempting to create a pref class of shares facilitating insider sell down. Shame b/c it's a good business inside.
I get really mad when I register to ask a question, am acknowledged by the prompt system, only to be serenaded by the "we have no further questions at this time, I'll turn the call back to management for closing remarks" several minutes later.
I had one notable such experience last week. The company is covered by multiple analysts but performance has been so dismal that only one bothered to show for the call. Management ended the call at the 25 minute mark after taking two questions from the analyst, and had the nerve to thank the analyst for his "insightful questions" concluding "it always helps when he asks them and allows us to further explain our business". "And for the rest of you listening, thank you". Yeah, thank you for putting your had earned capital at risk, analyst questions may be helpful in explaining our business, but please don't bother us with any of your questions.
The company is consistently profitable on an annual basis with a new but currently non-revenue-generating product that on a standalone basis is potentially worth multiples of its current market cap, yet the stock trades at a discount to book. The core business is admittedly lumpy and unpredictable - unpredictable at least to management - so maybe the fault is in our stars, it's the kind of business that will never be correctly valued by fast money public markets. On the other hand, a management team in these circumstances that declines investor questions is a huge red flag.
Let me know if you'd like to discuss the opportunity, it's been written up - at least twice - by Chris.
Sure would leave to hear more
You are preaching to the choir; I hate how companies act like their calsl are some sacred events that only sell side who needs to stay on their good side shoudl get to ask questions on
Three concerns:
1. Management can't execute, so value is illusory
2. Management aren't trustworthy/have no credibility, so value is destroyed
3. Valuation is so depressed that public shareholders are at risk of a take-under.
Brief call with you and/or Chris this week or week following? Friday is best day this week given earnings calendar, following week wide open.
Boards go to Juniper, to get more stupider
Sorry off topic to this post(still not sure how/ where to send general messages with this app) what should we be expecting in this WOW quarter?
Insightful post, thanks for sharing! Should take a look @ Life360 (360-AU). Awarding RSUs to mates, related-party transactions, attempting to create a pref class of shares facilitating insider sell down. Shame b/c it's a good business inside.
Any thoughts to shorting the governing disasters? It wouldn't be the only signal but it sounds like a strong one.