Operating at the Intersection of Technology and the Capital Markets
Tag: CEOs
One lesson I've learned over the past 28 years in the Capital Markets is that companies should not feed into hype in order to bolster their Enterprise Value. Rather than feed into hype, CEOs and management teams ought to focus on driving the business and educating investors. The average institutional investor does not understand the … Continue reading Public Company CEOs Should Not Feed the AI Hype
Below is the high-level outline for our next book to be published as an Amazon Kindle book later this summer. The book will be focused on CEO communications with public company investors. I. Define Your Company What We Do & How We Do It How We Create Customer Value How We Create A Sustainable Competitive … Continue reading Communicating with Investors: A CEO Handbook
The best CEOs drive the business during economic downturns as well as during good times. Having operating targets large and small across all facets of the operation supported by incentive-based compensation systems greatly increases the probability of driving superior operating performance. The best CEOs define a mother mission. It is ideal if the mission is … Continue reading The Best CEOs
Companies are a reflection of the personalities of their founders and CEO. Is anyone surprised by the fact that Google terminated employees without notification other than automated user account deactivations? Google is a Quant-centric company founded by two Quants (Larry Page and Sergey Brin) and led by a hand-picked, data-driven, quant-centric CEO (Sundar Pichai). You … Continue reading Google Firings: Why CEO Personalities Matter
Small Cap stocks are where outsized opportunities reside. This will be especially true if the vaunted "Fed Put" is broken as we expect it will be. Small Cap land is where you will find quality companies led by quality management teams that are under-followed by the sellside community. First, run a screen for companies with … Continue reading Small Cap Stocks: The Land of Opportunity
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”
Hopefully most public and private companies took a conservative approach to building their 2023 budgets last year. It is best for public companies to take a similarly conservative approach to 2023 Revenue and EPS guidance during the current earnings season. Most CEOs did not live through the 2008-2009 Financial Crisis. The 2008-2009 period was an … Continue reading 2023: Conservative Budgets & Guidance Are Best
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
When it comes to Technology companies, headcount reductions are rarely "one & done". This used to be especially true of Bay Area Technology companies which are famous for lacking operating discipline (i.e. cost discipline). However, the Bay Area aversion to running profitable businesses has permeated the Tech sector over the past 12 years of easy … Continue reading Tech Company Layoffs Are Rarely “One & Done”
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
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