I did hold since the beginning of 2020 and sold somewhere along the way, but my dad fortunately made some good money with it, haha!
By the way, I would be interested in seeing if you have any insights in regards to some quantitative metrics to measure the indicators you've specified in the article, in addition to insider ownership, SBC/Revenue was an interesting one. Anything else you can think of?
Well, insider buys are interesting, more as a signal. Especially when leadership thinks in terms of intrinsic value of their business. All other metrics are the consequence of their actions like ROIC, ROIIC, reinvestment rate etc.
Analyzing executive compensation for nano-small caps always gives it away. There have been many times where I'll come across a small "struggling" company doing $100,000-$1 million in revenue, but their executives are paid $500,000-$6 million. These companies try to bank on people not reading the SEC filings.....
This is one of most insightful posts ive come across on substack. Thanks for sharing this kevin!
🙏
Jen-Hsun Huang comes to mind as a great leader creating shareholder value.
Oh yes. Traits of an outsider and massive shareholder value. Never held the stock though 😭
I did hold since the beginning of 2020 and sold somewhere along the way, but my dad fortunately made some good money with it, haha!
By the way, I would be interested in seeing if you have any insights in regards to some quantitative metrics to measure the indicators you've specified in the article, in addition to insider ownership, SBC/Revenue was an interesting one. Anything else you can think of?
Well, insider buys are interesting, more as a signal. Especially when leadership thinks in terms of intrinsic value of their business. All other metrics are the consequence of their actions like ROIC, ROIIC, reinvestment rate etc.
Perhaps the best text ever on this issue. Great writing! Have a look at Gnp.ax and evo.ax to showcase these
Thanks, I'll take a look! Why the sudden drop in revenue at evo a couple of years ago?
Analyzing executive compensation for nano-small caps always gives it away. There have been many times where I'll come across a small "struggling" company doing $100,000-$1 million in revenue, but their executives are paid $500,000-$6 million. These companies try to bank on people not reading the SEC filings.....
I liked this article. I read The Outsiders last summer. I think Elon Musk is in that group. I will forward this article on Twitter. Thanks.
Thanks! Musk is in a category of is own 😀