In biology, there is a concept called apoptosis. It is the programmed death of a cell. The cell receives a signal, and it quietly dismantles itself from within. No drama. No inflammation. Just an orderly exit so the organism can keep functioning. It is one of the most elegant processes in nature, and it happens […]
From Cannibals to Zombies: Shorting Companies That Shouldn’t Exist Read More »
Most investors treat the price to earnings ratio like a thermometer, checking it compulsively to diagnose market fevers. But what if you’ve been reading the wrong instrument all along? The P/E ratio tells you what the market thinks about profits, but it whispers nothing about the debt strangling those profits or the cash sitting idle
Beyond P/E: How to Use EV/EBITDA to Spot Undervalued Gems Read More »
The Problem with Labels Language shapes reality in peculiar ways. We call certain stocks “small cap” and assume we’re talking about small companies. But language is a lazy shorthand, and finance is full of shortcuts that stop making sense the moment you look closer. The market capitalization of a company tells you what investors think
Why “Small Cap” Doesn’t Always Mean “Small Company” Read More »
There’s a peculiar ritual that plays out in conference rooms across the financial world. An analyst presents a valuation model, and somewhere in the deck sits a page titled “Comparable Company Analysis.” The companies listed there read like a guest list to an exclusive party: Apple, Google, Microsoft. Everyone nods. The analysis feels solid, defensible,
The Prestige Bias: Why We Overvalue Brands We Recognize in Comparable Company Analysis Read More »