Tag: CEORater

Which Companies Are Best Positioned To Grow?

Which Companies Are Best Positioned To Grow?

Which companies are best positioned to grow during this economic downturn? Not the companies doing what the Street wants. Wall Street loves it when companies significantly reduce headcount and execute stock repurchases during economic downturns. Those are exactly the companies you do not want to own coming out of the downturn because they will not … Continue reading Which Companies Are Best Positioned To Grow?

Q4’22 EPS Call Buzzword: “Cautious”

Q4’22 EPS Call Buzzword: “Cautious”

Get ready to hear the word "cautious" repeated ad nauseam on forthcoming Technology company EPS calls this month and next. Temenos (tkr: TEMN), is one such example. You may read the FinTech company's Q4 press release here: https://www.temenos.com/news/2023/01/16/temenos-pre-announces-preliminary-q4-and-fy-2022-results-bxf9181m/ Temenos also announced a CEO change. I expect to see more CEO changes than normal in 2023. … Continue reading Q4’22 EPS Call Buzzword: “Cautious”

ChatGPT Fun: From Jobs To Kubrick & More

ChatGPT Fun: From Jobs To Kubrick & More

More fun running Chat GPT queries (read this particular article in landscape mode to get the best viewing experience). We cover Steve Jobs, Stanley Kubrick, effective CEOs and wine pairings for roasted duck using OpenAI's ChatGPT natural language platform. Source: https://chat.openai.com/chat

Management Teams Are An Afterthought

Management Teams Are An Afterthought

Management Teams are an afterthought and it is a shame. Microsoft would not be enjoying the same level of success if Steve Ballmer was still at the helm.Not every Steve Ballmer successor would have been as effective as current Microsoft CEO Satya Nadella. Bill Gates was the right person at the right time to co-found … Continue reading Management Teams Are An Afterthought

It Always Makes Sense To Invest In Quality Names

It Always Makes Sense To Invest In Quality Names

Many Technology investors got religion on August 26th as it relates to interest rate increases (more to come) and a Fed pivot (not any time soon). The message of "higher for longer" was reiterated yesterday by Fed Chair Powell. The Fed tends to undershoot when it comes to inflation and its Fed Funds target. We … Continue reading It Always Makes Sense To Invest In Quality Names

When CEO Compensation Is The Primary M&A Driver

When CEO Compensation Is The Primary M&A Driver

Too frequently companies execute M&A transactions not because a given acquisition strengthens the acquiring company's competitive position or enhances customer value, but because the acquired company could help boost CEO compensation of the acquirer by driving some combination of higher total revenue growth, higher EBITDA, higher bookings and/or a higher stock price. Today's announcement that … Continue reading When CEO Compensation Is The Primary M&A Driver

A Return To Fundamental Investing

A Return To Fundamental Investing

When may this occur? Don't hold your breath. Investors' obsession with interest rates will likely persist until the market finds a bottom. It is unlikely that equity markets will find a bottom while the Fed is tightening monetary policy. We saw the NASDAQ Composite recover in October 2019 as the Fed became more accommodative. We … Continue reading A Return To Fundamental Investing

Quality of Management

Quality of Management

Talk about an overlooked investment decision-making variable. Nothing is more overlooked by investors than the Quality of Management. Define "quality" how you will. At present, Quality of Management seems to be an afterthought amongst many investors. Even peddlers of financial knowledge such as the CFA Institute (remind me what practical value the CFA institute provides?), … Continue reading Quality of Management

VC Culture Ruins Companies

VC Culture Ruins Companies

The grow-at-all-costs venture capital culture of the past 20-plus years ruins companies. How? Far too much focus is placed on revenue growth at the expense of sound operations and profitability. Too many venture-backed companies grow at a pace that far outstrips those companies' ability to scale operations in a manner that supports growth. The result … Continue reading VC Culture Ruins Companies