CEORater Podcast: Recent Episodes
Jonathan Maietta
The CEORater Podcast covers: Technology, Capital Markets, Corporate Governance, Leadership and Entrepreneurship.
A quick review of our recent TEK2day published written content. Learn more at TEK2day.com
Scott Kurland and Dan Pallone of SS&C Technologies (ticker: SSNC), joined the TEK2day Podcast to cover the insurance industry as it relates to insurance carriers investing in alternative asset classes in the pursuit of yield.
We recently covered this topic in our TEK2day Spotlight report “THE EVOLVING INSURANCE INDUSTRY” which SS&C was kind enough to sponsor. SS&C recently published an e-book “10 CONSIDERATIONS THAT ‘LEND’ CREDIBILITY TO PRIVATE MARKET INVESTING”, that covers similar subject matter. Both the e-book and our spotlight report may be accessed below.
Access the SS&C e-book here: https://www.ssctech.com/resources-insights/pdfs/10-considerations-private-market-investing
Access the TEK2day Spotlight report here: https://tek2day.com/2021/07/29/tek2day-spotlight-the-evolving-insurance-industry/
For more TEK2day content visit https://tek2day.com/
For more on SS&C Technologies visit https://www.ssctech.com/
The TEK2day Podcast is available across all popular podcast playing platforms including Apple and Spotify:
Apple Podcasts: https://podcasts.apple.com/us/podcast/tek2day-podcast/id1270002408
Spotify: https://open.spotify.com/show/3IybCrJs9ZPZTFPYlDg78b
Check out our parent company – CEORater – where you may anonymously rate your company and CEO at CEORater.com
Visit CEORater on LinkedIn: www.linkedin.com/company/ceorater
A Win for Intuit. A Loss for Facebook:
Intuit (ticker: INTU), recently announced that it had agreed to acquire Mailchimp, the marketing platform used by small and medium-sized businesses (we are a Mailchimp customer). Intuit is in the business of serving the SMB market. Facebook (ticker: FB), also serves SMBs and made a smart acquisition last year (Kustomer acquisition) to bolster its SMB offerings. Mailchimp is the type of company that would have been a financial rounding error for Facebook in the near-term, yet would have tightened Facebook’s grip on the low-end of the market while simultaneously providing FB with the means to extend up market. Thus, missing this deal was a strategic blunder for Facebook.
For more TEK2day content visit TEK2day.com
The TEK2day Podcast is available across all popular podcast playing platforms including Apple and Spotify:
Apple Podcasts: https://podcasts.apple.com/us/podcast/tek2day-podcast/id1270002408
Spotify: https://open.spotify.com/show/3IybCrJs9ZPZTFPYlDg78b
Check out our parent company – CEORater – where you may anonymously rate your company and CEO at CEORater.com
Visit CEORater on LinkedIn: www.linkedin.com/company/ceorater
Elevated prices of goods and services are largely here to stay as a result of the Federal Reserve having dramatically inflated the money supply beginning in Q2 of 2020. These persistent price increases combined with stalling real GDP growth translate to stagflation. In April we wrote in our Amazon Kindle book that Stagflation Is Imminent. Stagflation is now here. Purchase a copy of our book “Stagflation Is Imminent”, here for only $9.99: https://www.amazon.com/Stagflation-Imminent-Jonathan-Maietta-ebook/dp/B091NB9V7M
Read about the origin and evolution of the word “inflation” here: https://drive.google.com/file/d/1aUAXj0ooKmbIONVZXMu9vbKUCkmsEqS1/view?usp=sharing
Read about the Atlanta Federal Reserve’s Real GDP measure here: https://www.atlantafed.org/-/media/documents/cqer/researchcq/gdpnow/RealGDPTrackingSlides.pdf
For more TEK2day content visit TEK2day.com
The TEK2day Podcast is available across all popular podcast playing platforms including Apple and Spotify:
Apple Podcasts: https://podcasts.apple.com/us/podcast/tek2day-podcast/id1270002408
Spotify: https://open.spotify.com/show/3IybCrJs9ZPZTFPYlDg78b
Check out our parent company – CEORater – where you may anonymously rate your company and CEO at CEORater.com
Visit CEORater on LinkedIn: www.linkedin.com/company/ceorater
Quality Companies Outperform Over The Long-Term
We will say it until we are blue in the face: Management Teams Matter.
A high quality management team starts with a high-quality CEO. Quality management teams build quality companies. They do the hard, tedious work required to build the best products and processes in order to deliver maximum customer value. CEOs of these companies typically share certain attributes. For example, they invest for the long-term and work to drive long-term shareholder value. They will not for example chase a short-term “hype” opportunity to drive short-term gains as MicroStrategy (tkr: MSTR) CEO Michael Saylor has done in his pursuit of Bitcoin riches. Quality companies and CEOs such as Andy Florance of CoStar Group (tkr: CSGP), Henry Fernandez of MSCI (tkr: MSCI) and Bill Stone of SS&C Technologies (tkr: SSNC), are in it for the long haul. They won’t chase M&A targets with exorbitant valuations. They won’t roll out flavor of the month products that deliver negligible customer value. They will invest to deliver long-term shareholder value. This long-term approach may translate to underperformance during bubble periods such as the mother of all bubbles that we operate in today. However, quality management teams won’t blow you up. They won’t make poor capital allocation decisions nor deliver poor financial performance. Quality companies do tend to outperform when the economy and markets are soft and when markets are “normal”. Quality companies also tend to outperform over multi-year periods. Below we benchmark CSGP, MSCI and SSNC vs. the NASDAQ Composite. Read full article here: https://tek2day.com/2021/07/08/quality-companies-outperform-over-the-long-term/
1.) VCs are not aligned with Entrepreneurs.
2.) Many of these EV CEOs are frauds as are the companies. We told you so a long time ago. It matters who the CEO is.
3.) Fed Chairman Jerome Powell is campaigning for his job to be renewed in February rather than behaving as an adult as the Fed works to inflate the debt away.
CEORater Quick Take: We expect CEOs and CFOs to retire at a record pace by year-end 2021 due to the rigors of COVID. Last year it was establishing WFH environments. This year it is defining back-to-the-office policies and executing on them. Lots of CEO and CFO retirement announcements should come between October 2020 and December 2020. We may also see M&A activity spike near year-end as founder CEOs in particular step away from the non-revenue generating rigors of 2020 and 2021.
We compared the year-over-year percentage change in M2 (measured each month) to the year-over-year percentage change in the NASDAQ Composite (measured each month on a one-month lag) and found a strong correlation as measured by a correlation coefficient of 81.7%.
Our analysis covered the percentage change in M2 from April 2020 (when the money supply was increased to combat COVID), through March 2021. We used March 2021 as an endpoint as by then the NASDAQ Composite had traded off and had begun to plateau. Thus it would seem that some of the “free money” mailed to companies (PPP), individuals (federal unemployment relief), and used to purchase government agency bonds as well as corporate bonds (Fed Reserve actions) either directly made its way into NASDAQ-listed names or helped support NASDAQ valuations indirectly. This speaks to the asset inflation brought on by loose fiscal and monetary policy.
Read the full article at this link where you may access our data table in full: https://tek2day.com/2021/06/17/strong-correlation-between-m2-growth-nasdaq-composite-growth/
One of the great distortions caused by the joint fiscal and monetary policy of 2020 and 2021 is that equities and the lowest-rated non-investment grade credits are two of the all too rare places where investors may earn a return. Savers and Fixed Income investors be damned. Many companies are enjoying their stocks trading at all-time highs. Management teams are getting a pass on lackluster operating performance as a result of their stocks trading higher over 2020 and 2021. To this we say “What about opportunity cost?”
Consider Roper Technologies (tkr: ROP). ROP shares trade at an all-time high, yet organic revenue declined in the most recent quarter on a Y-O-Y basis (we have been critical of Roper’s M&A strategy). ROP is not alone. Many companies are enjoying record valuations with less than stellar operating performance. Don’t fall for the excuse that a company is victim to its industry which may be suffering from COVID or some other such exogeneous factor. If that’s the case, reduce waste, ensure the core business is strong, and look for opportunities to strengthen the company with smart, strategic partnerships and acquisitions. My advice would be to focus on the former at the present moment until such time as valuations begin to pull back.
"Rewarding Non-Productive Activities with New Money Leads to Price Inflation":
The punchline is that a significant percentage of new money creation over the past year was allocated to non-productive use cases. “Helicopter” money to individuals and non-performing firms are two examples. When capital is deployed for non-productive use (acquiring cryptocurrencies for example), that capital invariably bids up prices causing asset price inflation. Conversely, recipients that are able to deploy capital in a productive manner (small software development firm for example), create value through production of goods and services (Software products in this case), which does not lead to asset price inflation. Below we have included two charts published by the Federal Government which illustrate our point and speak to the asset price inflation or “bubbles” we have voiced our concern about over the past 14 months. (more....)
Read the full article here: https://tek2day.com/2021/06/09/why-we-have-price-inflation/
More bogus CPI numbers reported yesterday. The CPI itself is a poor price inflation measure given it excludes so many asset classes such as equities, art and crypto. Let’s focus on one CPI line item – “food at home” which was up 0.7% over the past 12 months ended May. Sorry, that’s a bogus number. My family’s grocery bill is up 20-30%. That percentage increase is in absolute terms and does not contemplate the old retail trick of shrinking packaging while maintaining prices which is happening. We’ve sampled a couple of local restaurants over the past two weeks and noted that prices were flat yet portion sizes were reduced by 20-25%. These prices increases are not transitory. Food suppliers are not going to triple inventories simply to get prices down. Same for lumber and metals. It’s not happening. What is clear is that the Federal Government and the Federal Reserve are working in concert to inflate prices, thereby inflating GDP, thereby inflating tax receipts, thereby shrinking outlays to interest expense on the mountain of debt outstanding. Buckle up because price inflation will get worse, not better.
Don't believe the Fed's spin that asset price increases are "Transitory". Price appreciation is here to stay given that the Fed has inflated the Money Supply (M1) by 4.7x since January 2020.
“Inflation” to lead headlines again when CPI data is reported. Real-world price appreciation is well ahead of the Fed’s 2% target.
If last month was any indication the term “inflation” will dominate market-related headlines when May CPI data is released on Thursday June 10th at 8:30am ET (See Google Trends chart below for search term “inflation” as of Thursday May 27th). Recall that when April CPI data was released on May 12th, many were surprised to learn of the 4.2% annual increase (April 2021-April 2020 period). We don’t publish a TEK2day inflation model, but trips to the grocery store, farmers markets and Home Depot were sufficient to directionally indicate that prices have increased over the past few weeks. Price increases are a predictable by-product of a foolish monetary policy that has inflated the money supply (M1) by 4.7x since January 2020 (chart below). Stagflation is the end-game to this experiment in ultra-inflationary monetary policy. As to the question of “transitory inflation” – that is Fed marketing spin. A casual glance at housing prices, equities, building materials, precious metals, commodities, used car prices, art, food, etc. speaks to something more permanent. The catalyst of course is the Fed’s dramatic expansion of the money supply. However, don’t blame Mr. Powell for The Fed’s actions. COVID forced his hand after all. “Good times create weak men, and weak men create hard times”. – G. Michael Hopf
I’ve yet to be convinced of the value proposition of incorporating ESG into the investment decision-making process. What are the definitions of the “Environmental” and “Social” elements of ESG and how are each directly correlated to alpha generation? You are preaching to the choir as it relates to “Corporate Governance” – the “G” in ESG. No other variable is as important to a company’s success as is the Management Team/CEO. The composition of the Board of Directors is a close second.
Link to the full TEK2day ESG article: https://tek2day.com/2021/05/31/g-is-where-the-value-is-in-esg/
Here is the link to the TEK2day Electricity Generation article referenced in the episode: https://tek2day.com/2021/05/19/evs-musk-biden-and-homer-simpson/
Our related TEK2day articles may be found below:
Workers Choose To Collect Federal Unemployment Benefits Rather Than Work: https://tek2day.com/2021/05/07/workers-choose-to-collect-federal-unemployment-benefits-rather-than-work/
Federal Transfer Payments To Americans Don’t Equal Economic Strength: https://tek2day.com/2021/05/02/federal-transfer-payments-to-americans-dont-equal-economic-strength/
Inflation Is Here To Stay. Powell Likely Has Lost Control.: https://tek2day.com/2021/04/29/inflation-is-here-to-stay-powell-likely-has-lost-control/
The Fed’s Vicious Cycle and Gold: https://tek2day.com/2021/04/20/the-feds-vicious-cycle/
Enhanced Unemployment Benefits Are Hurting Retailers: https://tek2day.com/2021/04/14/enhanced-unemployment-benefits-are-hurting-retailers/
Visit www.CEORater.com
Visit www.TEK2day.com
Purchase our Amazon Kindle Book for $9.99 here: https://www.amazon.com/Stagflation-Imminent-Jonathan-Maietta-ebook/dp/B091NB9V7M/ref=sr_1_3
Visit www.CEORater.com
Access our CEORater Personality Analytics report (referenced in this podcast episode), here: https://drive.google.com/file/d/1yVs6K5LUs0Ndyc0aep91OKtxYbLzVJy8/view?usp=sharing
Visit www.TEK2day.com
Purchase our Amazon Kindle Book for $9.99 here: https://www.amazon.com/Stagflation-Imminent-Jonathan-Maietta-ebook/dp/B091NB9V7M/ref=sr_1_3
Visit CEORater.com and TEK2day.com.
Purchase our Amazon Kindle Book for $9.99 here: https://www.amazon.com/Stagflation-Imminent-Jonathan-Maietta-ebook/dp/B091NB9V7M/ref=sr_1_3
Read our related TEK2day article “Put Your Strategic M&A Team On Ice” here: https://tek2day.com/2021/05/05/put-your-strategic-ma-team-on-ice/
Perhaps that recommendation is a bit harsh and unexpected coming from me, someone who is a staunch advocate of strategic M&A. However, the fact is that interest rates are historically low and valuations will remain historically high until such time as interest rates begin to rise. As we recently wrote, equity valuations have the looming double whammy of higher interest rates and higher corporate taxes which are sure to haircut valuations. Until such time valuations will remain historically high, especially within the Tech sector where valuations rival the dot-com Bubble of 1999-2000. Rather than chase expensive deals, smart alternatives may include investing in Product Development, investing in your salesforce, investing in employee recruiting and training and paying or increasing a dividend. Strategic acquirers must live with the downside risk associated with their acquisitions. Contrast this to Private Equity firms and SPAC sponsors which are perfectly happy to chase deals with other people’s money. Their returns are cushioned by cheap debt, double-digit percentage fees and elements that limit downside participation. Now is not the time to chase but rather to focus on that which is in your control. M&A teams would be wise to focus on building a robust M&A landscape and to strengthen relationships with potential targets for when the time is appropriate to act. Last, throw out the preceding advice if your company is valued at multiples of competitors’ enterprise value in which case you ought to leverage your rich currency and pursue accretive acquisitions.
Visit CEORater.com and TEK2day.com.
Purchase our Amazon Kindle Book for $9.99 here: https://www.amazon.com/Stagflation-Imminent-Jonathan-Maietta-ebook/dp/B091NB9V7M/ref=sr_1_3
Both Facebook (Facebook Blue and Instagram) and Twitter have an enormous Bot problem. Fake user accounts are included in active user counts and therefore contribute to Ad rates. Facebook said it took down 1.3 billion fake accounts October-December which is not to say it removed every last fake account or even a majority of them. Facebook has previously estimated that 5% of its active users are fake accounts but who is to say? No means exists by which to audit Facebook’s platform. Anecdotally, the Bot problem seemed to get worse in the few years that CEORater used Facebook before we exited the platform in 2020. Twitter to my knowledge has never self-reported the approximate number of fake accounts that exist on its platform. However, Twitter’s Bot problem seemed to grow in severity in our eight years on the platform before we exited in 2020. Further, Twitter has evolved from a platform primarily geared toward commercial activity where the Tech industry was the primary driver to a political platform marked by toxic political discourse. Commercial activity has been marginalized. The combination of Twitter’s toxic political discourse and fake account problem has placed Jack Dorsey’s company on a path to become a niche platform. What are Social Media Ad buyers truly getting in return for their Ad spend?
It would seem a better digital Ad buy would be “in-game” ad buys (i.e. product placement – it is more difficult to fudge the number of active gamers), and targeted ad purchases across premium content platforms – Amazon Prime, NY Times, Wall Street Journal, Bloomberg – where the buyer knows there is a paying, subscribing human on the receiving end.
Purchase our Amazon Kindle Book for $9.99 here: https://www.amazon.com/Stagflation-Imminent-Jonathan-Maietta-ebook/dp/B091NB9V7M/ref=sr_1_3
Inflation Is Here To Stay. Powell Likely Has Lost Control.: https://tek2day.com/2021/04/29/inflation-is-here-to-stay-powell-likely-has-lost-control/
Biden’s Long-Term Capital Gains Tax Increase Will Spur Selling: https://tek2day.com/2021/04/26/bidens-long-term-capital-gains-tax-increase/
U.S. Trade Deficit With China To Explode: https://tek2day.com/2021/04/24/u-s-trade-deficit-with-china-to-explode/
Biden’s Climate Plan Is A Tax On Companies And Individuals: https://tek2day.com/2021/04/23/bidens-climate-plan-is-a-tax-on-companies-and-individuals/
The Fed’s Vicious Cycle and Gold: https://tek2day.com/2021/04/20/the-feds-vicious-cycle/
A Corporate Tax Hike Will Be A Double Whammy On Valuations: https://tek2day.com/2021/04/16/a-corporate-tax-hike-will-be-a-double-whammy-on-valuations/
Enhanced Unemployment Benefits Are Hurting Retailers: https://tek2day.com/2021/04/14/enhanced-unemployment-benefits-are-hurting-retailers/
Yellen’s Minimum Global Corporate Tax Is A Big Deal: https://tek2day.com/2021/04/10/yellens-minimum-global-corporate-tax-is-a-big-deal/
A Breakdown of Biden’s $2.3 Trillion Green New Deal: https://tek2day.com/2021/04/02/a-breakdown-of-bidens-2-3-trillion-green-new-deal/
The Ugliest Chart I Have Ever Seen: https://tek2day.com/2021/03/31/the-ugliest-chart-i-have-ever-seen/
Stagflation Is Imminent: https://tek2day.com/2021/03/30/stagflation-is-imminent/
The Fed’s Options To Fight Inflation Are Limited: https://tek2day.com/2021/03/29/the-feds-options-to-fight-inflation-are-limited/
Powell Just Told Us Why Interest Rates Will Remain Low: https://tek2day.com/2021/03/25/powell-just-told-us-why-interest-rates-will-remain-low/
More Inflation Is Coming: https://tek2day.com/2021/03/18/more-inflation-is-coming/
A More Hawkish Fed Is Not In The Cards This Year: https://tek2day.com/2021/03/15/the-fed-becoming-more-hawkish-is-not-in-the-cards-this-year/
A Breakdown of Biden’s Debt-Funded COVID Relief Program: https://tek2day.com/2021/03/13/a-breakdown-of-bidens-debt-funded-covid-relief-program/
Brace for Anemic Long-Term Real GDP Growth: https://tek2day.com/2021/03/06/brace-for-anemic-long-term-real-gdp-growth/
The Fed’s Next Move Is To Ramp QE, Not Raise Rates.: https://tek2day.com/2021/03/04/the-feds-next-move-is-to-ramp-qe-not-raise-rates/
Long Rates Continue To Climb As Inflation Persists. Nothing To See Here.: https://tek2day.com/2021/02/18/long-rates-continue-to-climb-as-inflation-persists-nothing-to-see-here/
The Fed’s Evolution From Independent Agency to Treasury Subsidiary: https://tek2day.com/2021/02/08/the-feds-evolution-from-independent-agency-to-treasury-subsidiary/
The Biden Administration’s latest debt-funded spending program will create increasing inflation and therefore tax the American people as the price of goods and services climb ever higher. This latest program ($ 1.8 Trillion) will further penalize Americans via the inflation tax = taxation without representation. Between the Trump Administration’s two spending programs ($2.3 Trillion, $900 Billion) and Biden’s three spending programs ($1.9 Trillion, $2.3 Trillion, $1.8 Trillion), we are rapidly losing the country to an out-of-control Federal Government that is hell-bent on creating $Trillions out of thin air to pursue spending programs it believes will win voters at the end of the day. Translation: The Federal Government will play an increasingly larger role in our daily lives. Recent related TEK2day articles are listed below:
Purchase our Amazon Kindle Book for $9.99 here: https://www.amazon.com/Stagflation-Imminent-Jonathan-Maietta-ebook/dp/B091NB9V7M/ref=sr_1_3
Biden’s Long-Term Capital Gains Tax Increase Will Spur Selling: https://tek2day.com/2021/04/26/bidens-long-term-capital-gains-tax-increase/
U.S. Trade Deficit With China To Explode: https://tek2day.com/2021/04/24/u-s-trade-deficit-with-china-to-explode/
Biden’s Climate Plan Is A Tax On Companies And Individuals: https://tek2day.com/2021/04/23/bidens-climate-plan-is-a-tax-on-companies-and-individuals/
The Fed’s Vicious Cycle and Gold: https://tek2day.com/2021/04/20/the-feds-vicious-cycle/
A Corporate Tax Hike Will Be A Double Whammy On Valuations: https://tek2day.com/2021/04/16/a-corporate-tax-hike-will-be-a-double-whammy-on-valuations/
Enhanced Unemployment Benefits Are Hurting Retailers: https://tek2day.com/2021/04/14/enhanced-unemployment-benefits-are-hurting-retailers/
Yellen’s Minimum Global Corporate Tax Is A Big Deal: https://tek2day.com/2021/04/10/yellens-minimum-global-corporate-tax-is-a-big-deal/
A Breakdown of Biden’s $2.3 Trillion Green New Deal: https://tek2day.com/2021/04/02/a-breakdown-of-bidens-2-3-trillion-green-new-deal/
The Ugliest Chart I Have Ever Seen: https://tek2day.com/2021/03/31/the-ugliest-chart-i-have-ever-seen/
Stagflation Is Imminent: https://tek2day.com/2021/03/30/stagflation-is-imminent/
The Fed’s Options To Fight Inflation Are Limited: https://tek2day.com/2021/03/29/the-feds-options-to-fight-inflation-are-limited/
Powell Just Told Us Why Interest Rates Will Remain Low: https://tek2day.com/2021/03/25/powell-just-told-us-why-interest-rates-will-remain-low/
More Inflation Is Coming: https://tek2day.com/2021/03/18/more-inflation-is-coming/
A More Hawkish Fed Is Not In The Cards This Year: https://tek2day.com/2021/03/15/the-fed-becoming-more-hawkish-is-not-in-the-cards-this-year/
A Breakdown of Biden’s Debt-Funded COVID Relief Program: https://tek2day.com/2021/03/13/a-breakdown-of-bidens-debt-funded-covid-relief-program/
Brace for Anemic Long-Term Real GDP Growth: https://tek2day.com/2021/03/06/brace-for-anemic-long-term-real-gdp-growth/
The Fed’s Next Move Is To Ramp QE, Not Raise Rates.: https://tek2day.com/2021/03/04/the-feds-next-move-is-to-ramp-qe-not-raise-rates/
Long Rates Continue To Climb As Inflation Persists. Nothing To See Here.: https://tek2day.com/2021/02/18/long-rates-continue-to-climb-as-inflation-persists-nothing-to-see-here/
The Fed’s Evolution From Independent Agency to Treasury Subsidiary: https://tek2day.com/2021/02/08/the-feds-evolution-from-independent-agency-to-treasury-subsidiary/
A Corporate Tax Hike Will Be A Double Whammy On Valuations:
Consider the Fintech and Information Services sector. Depending upon how you define it, the sector trades at approximately 30x Operating Cash Flow (“OCF”). If Company X generates $1 billion in Operating Cash Flow today, the Net Income input will have been taxed at 28% under Biden’s proposal vs. the current 21% Federal corporate income tax (33% higher). Thus, 1.) the valuation multiple will be applied to a lower OCF figure all else held equal, and 2.) investors likely will apply a lower valuation multiple given the higher tax and lower cash flows. It feels to me that this phenomenon is not baked into Tech valuations and perhaps equity valuations more generally.
Federal programs such as the CARES Act/ Pandemic Unemployment Assistance and other COVID-related Federal handouts are hurting retail businesses. Retail used to be a great way for young people to gain valuable sales and customer experience early in their career. Many readers will have held hourly jobs at grocery stores, restaurants and the like during their high school and college years. Many adults work these jobs for additional income. The geniuses in Washington D.C. have turned this labor market on its head. Many Americans who would normally work these jobs now make more money collecting COVID-related Government benefits. As a result grocery stores, wine & liquor retailers, gyms, food service establishments and other retail operations are having difficulty staffing operations at a time when customers are returning. The penalty is two-fold: 1.) Opportunity Cost – lost revenue due to insufficient staff; 2.) Wage Inflation – businesses will be required to increase hourly wages in order to provide an incentive for people to return to work. Higher wages of course will cut into profits. It is one thing for a labor market to tighten due to a healthy, productive economy (the U.S. is not net productive as trade deficits are widening). However, it is quite another for labor markets to tighten because the Federal Government is competing with American businesses.
Check out our Amazon Kindle Book: "Stagflation Is Imminent": https://www.amazon.com/dp/B091NB9V7M/ref=cm_sw_em_r_mt_dp_D2TYT6MA6P6P3X7RH0YP
We had a conversation with Ken Bisconti and Bob Petrocchi who together co-lead Intralinks, an SS&C Technologies (tkr: SSNC) company. Intralinks is perhaps best known for its Virtual Data Room offering – “VDRPro“- part of a larger product portfolio that customers primarily use to securely manage M&A and related transactions. We covered a variety of topics including Intralinks’ customer value proposition across its three primary customer cohorts, go-to-market strategy, product offerings and more.
Our most recent TEK2day articles. In addition, check out our new Amazon Kindle book. Links below:
Amazon Kindle Book: “Stagflation Is Imminent”: https://www.amazon.com/gp/product/B091NB9V7M/ref=dbs_a_def_rwt_bibl_vppi_i0
PLM Software CEO Compensation Comparison: https://tek2day.com/2021/04/05/plm-software-ceo-compensation-comparison/
CEO Compensation Ought To Tightly Align With Company Performance: https://tek2day.com/2021/04/05/ceo-compensation-ought-to-tightly-align-with-company-performance/
Broadridge’s Acquisition of Itiviti. Nothing Is Cheap. https://tek2day.com/2021/04/03/broadridges-acquisition-of-itiviti-nothing-is-cheap/
Square, PayPal, and Apple Will Dominate A Digital Currency World: https://tek2day.com/2021/04/03/square-paypal-and-apple-will-dominate-a-digital-currency-world/
A Breakdown of Biden’s $2.3 Trillion Green New Deal: https://tek2day.com/2021/04/02/a-breakdown-of-bidens-2-3-trillion-green-new-deal/
Related TEK2day articles:
1.) The Ugliest Chart I Have Ever Seen: https://tek2day.com/2021/03/31/the-ugliest-chart-i-have-ever-seen/
2.) Stagflation Is Imminent (premium): https://tek2day.com/2021/03/30/stagflation-is-imminent/
3.) The Fed’s Options To Fight Inflation Are Limited: https://tek2day.com/2021/03/29/the-feds-options-to-fight-inflation-are-limited/
Selfish politicians over the past number of decades have led us to a point where generations to come will be paying down the U.S. Debt load. If you ask me it is too late to avoid a dollar crisis as we believe the U.S. will eventually default on its debt. Thank Bush, Obama, Trump and now clueless, selfish Joe Biden would plans to add $6-7 Trillion in new debt in 2021 alone.
We share our ideas as to how Biden ought to allocate his $3 Trillion Infrastructure program. A public-private partnership across two key areas makes sense: CyberSecurity and the Electric Grid. We have previously covered how Distributed Ledger Technologies ("DLT"), such as Blockchain could be used to replace legacy transaction processing systems from online payments to home and auto titling, to electronic healthcare records and more. In addition, we cover how The Fed seeks to control the money supply which does not bode well for Bitcoin and other cryptocurrencies over the long-term.
If you regularly listen to this podcast or read the pages of TEK2day you know that we are not fans of the debt-funded "stimulus" programs of Trump nor under Biden. These debt-funded, money printing efforts create havoc in the capital markets, engender moral hazard and have all sorts of unintended consequences. Let us not forget the amount of waste created by these "stimulus" programs which largely amount to politicians paying themselves vast sums of money to pursue various political initiatives geared to maintaining/gaining political power. The links below provide a breakdown of Biden's $1.9 Trillion COVID relief plan.
Read our TEK2day article here which includes a link to our COVID relief breakdown presentation: https://tek2day.com/2021/03/13/a-breakdown-of-bidens-debt-funded-covid-relief-program/
We cover our initial CEORater CEO Risk Report as well as the impact of rising Treasury yields on Technology M&A. Check out our related TEK2day articles below:
1.) More Inflation Is Coming: https://tek2day.com/2021/03/18/more-inflation-is-coming/
2.) Rising Yields Will Slow M&A Activity: https://tek2day.com/2021/03/16/rising-yields-will-slow-ma-activity/
3.) A More Hawkish Fed Is Not In The Cards This Year: https://tek2day.com/2021/03/15/the-fed-becoming-more-hawkish-is-not-in-the-cards-this-year/
4.) CEORater CEO Risk Report: https://tek2day.com/2021/03/15/ceorater-ceo-risk-report/
Is Salesforce COO Bret Taylor The Company’s Next CEO? Read our related TEK2day article here: https://tek2day.com/2021/03/10/is-salesforce-coo-bret-taylor-the-companys-next-ceo/
View CEORater's Bret Taylor profile here: https://www.ceorater.com/ceo/1847/10/Bret-Taylor
Read our related TEK2day article "Walmart E-Commerce Continues To Scale. A Spin-Off Could Unlock Shareholder Value." here: https://tek2day.com/2021/03/08/walmart-e-commerce-continues-to-scale-a-spin-off-could-unlock-shareholder-value/
Low labor participation, higher taxes and a large debt load translate to anemic long-term Real GDP growth.
The Fed's next move is to ramp up QE, not raise rates. We have $1.9 Trillion in new debt coming as a result of fiscal "stimulus". Now is not the time to raise interest rates.
Our related TEK2day articles may be found here:
A LinkedIn Spin-Off Could Unlock Significant Value For Microsoft: https://tek2day.com/2021/03/02/microsoft-should-consider-a-linkedin-spin-off/
We Are Taking A “Show Me” Approach To Gary Gensler As SEC Chairman: https://tek2day.com/2021/03/02/we-are-taking-a-show-me-approach-to-gary-gensler-as-sec-chairman/
Retail investors have misplaced their anger, a symptom of misguided Populism. Read our related articles at the URLs below.
Elon Musk Is A Carnival Barker At Best, A Criminal At Worst: https://tek2day.com/2021/01/28/elon-musk-is-a-carnival-barker-at-best-a-criminal-at-worst/
Everyone Is A Stock-Picking Genius During A Bubble. Where Is The SEC? https://tek2day.com/2021/01/27/everyone-is-a-stock-picking-genius-during-a-bubble-where-is-the-sec/
Read our related TEK2day article here: https://tek2day.com/2021/01/06/qualcomms-current-and-incoming-ceos-are-engineers-intels-ceo-is-not/
For more about TEK2day visit TEK2day.com
Apple Podcasts: https://podcasts.apple.com/us/podcast/tek2day-podcast/id1270002408
Spotify: https://open.spotify.com/show/3IybCrJs9ZPZTFPYlDg78b
Anonymously rate your company and CEO at CEORater.com
Twitter: @CEORater https://twitter.com/ceorater
Instagram: @CEORaterOfficial https://www.instagram.com/ceoraterofficial/
LinkedIn: www.linkedin.com/company/ceorater
Here is the link to the graph referenced in the episode: https://drive.google.com/file/d/1cMXaIEtaVnAZxH3eLMi3c1CYczHlvJsk/view?usp=sharing
For more about TEK2day visit TEK2day.com
Apple Podcasts: https://podcasts.apple.com/us/podcast/tek2day-podcast/id1270002408
Spotify: https://open.spotify.com/show/3IybCrJs9ZPZTFPYlDg78b
Anonymously rate your company and CEO at CEORater.com
Twitter: @CEORater https://twitter.com/ceorater
Instagram: @CEORaterOfficial https://www.instagram.com/ceoraterofficial/
LinkedIn: www.linkedin.com/company/ceorater
Related TEK2day article: https://tek2day.com/2020/12/21/palantir-is-not-a-software-company/
For more about TEK2day visit TEK2day.com
Apple Podcasts: https://podcasts.apple.com/us/podcast/tek2day-podcast/id1270002408
Spotify: https://open.spotify.com/show/3IybCrJs9ZPZTFPYlDg78b
Anonymously rate your company and CEO at CEORater.com
Twitter: @CEORater https://twitter.com/ceorater
Instagram: @CEORaterOfficial https://www.instagram.com/ceoraterofficial/
LinkedIn: www.linkedin.com/company/ceorater
$2.3 trillion omnibus bill including $900 billion in COVID relief. At the rate we are incurring debt and printing money the USD is sure to plummet. Time to go back on the Gold standard.
Here is the Omnibus bill from Dec 21st 2020: https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-116HR133SA-RCP-116-68.pdf
Read our related TEK2day article here: https://tek2day.com/2020/12/15/is-there-another-leg-to-drop-in-the-solarwinds-cyberbreach/
For more about TEK2day visit TEK2day.com
Read our related TEK2day article here: https://tek2day.com/2020/12/16/consumption-based-pricing-models-align-best-with-customer-value-propositions/
Apple Podcasts: https://podcasts.apple.com/us/podcast/tek2day-podcast/id1270002408
Spotify: https://open.spotify.com/show/3IybCrJs9ZPZTFPYlDg78b
Anonymously rate your company and CEO at CEORater.com
Twitter: @CEORater https://twitter.com/ceorater
Instagram: @CEORaterOfficial https://www.instagram.com/ceoraterofficial/
LinkedIn: www.linkedin.com/company/ceorater
We discussed CEO Personality and its impact on stock returns with Dr. Joseph Harrison of TCU.
Joseph Harrison TCU profile page: https://neeley.tcu.edu/About_Neeley/Faculty_and_Staff/Harrison,_Joseph.aspx
HBR article we referenced: "How a CEO’s Personality Affects Their Company’s Stock Price": https://hbr.org/2019/10/how-a-ceos-personality-affects-their-companys-stock-price
Links to related TEK2day articles:
- "More RE: CEO Personality & Implications for Stock Prices": https://tek2day.com/2019/11/22/more-re-ceo-personality-implications-for-stock-prices/
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"Cult of CEO Personality & Implications for Stock Prices": https://tek2day.com/2019/11/14/cult-of-ceo-personality/
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"Predicting CEO Actions and Financial Outcomes Based On CEO Personality": https://tek2day.com/2018/12/14/predicting-ceo-actions-and-financial-outcomes-based-on-ceo-personality/
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"GM’s Mary Barra vs. Tesla’s Elon Musk – A CEO Personality Comparison": https://tek2day.com/2018/11/01/gms-mary-barra-vs-teslas-elon-musk-a-ceo-personality-comparison/
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"Using CEO Personality Types to Identify Risk": https://tek2day.com/2018/06/14/using-ceo-personality-types-to-identify-risk/
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"Personality Analytics: Technology CEOs Analyzed: Part Deux": https://tek2day.com/2018/06/03/personality-analytics-technology-ceos-analyzed-part-deux/
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"Personality Analytics: Technology CEOs Analyzed": https://tek2day.com/2018/05/28/personality-analytics-technology-ceos-analyzed/
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"Your CEO’s Personality Influences His/Her Ability to Scale": https://tek2day.com/2018/05/17/your-ceos-personality-influences-his-her-ability-to-scale/
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Our 2018 CEORater Mid-Cap Software CEO Personality Analysis: https://drive.google.com/file/d/1yVs6K5LUs0Ndyc0aep91OKtxYbLzVJy8/view?usp=sharing
Related TEK2day article: https://tek2day.com/2020/11/26/salesforce-is-chasing-the-leader/
SCOTUS opinion I referred to: https://www.supremecourt.gov/opinions/20pdf/20a87_4g15.pdf
Not all EV CEOs are created equally. A large TAM is certainly not an indicator of OEM success in the EV space. The person leading the charge matters far more than any TAM measurement. A given founder/CEO's entrepreneurial perseverance, grit and luck are far more important attributes than any other when considering the probability of success for any EV start-up. Elon Musk has these attributes in spades. The other CEO's in the EV cohort do not. Listen to our podcast to learn more.
Related TEK2day articles:
1.) There Is Only One Elon Musk: https://tek2day.com/2020/11/23/there-is-only-one-elon-musk/
2.) Hydrogen Fuel Cell Powered Vehicles Are Here, Yet A Ways Off: https://tek2day.com/2018/01/13/hydrogen-fuel-cell-powered-vehicles-are-here-yet-a-ways-off/
Related article: What Does A Contested Election Mean for Markets?
https://tek2day.com/2020/11/09/what-does-a-contested-election-mean-for-markets/
For more about TEK2day visit TEK2day.com
Apple Podcasts: https://podcasts.apple.com/us/podcast/tek2day-podcast/id1270002408
Spotify: https://open.spotify.com/show/3IybCrJs9ZPZTFPYlDg78b
Anonymously rate your company and CEO at CEORater.com
Twitter: @CEORater https://twitter.com/ceorater
Instagram: @CEORaterOfficial https://www.instagram.com/ceoraterofficial/
LinkedIn: www.linkedin.com/company/ceorater
About Our Sponsor:
SS&C Technologies (www.ssctech.com) is a global, market-leading provider of cloud-based investment accounting software, services and fund administration. SS&C’s AI-powered investment operations and accounting platform – Singularity – provides real-time, multi-basis accounting across a wide range of asset types with unparalleled automation and operational efficiency. Singularity is offered on a Software as a Service basis or via SmartSource – SS&C’s intelligent middle and back-office outsourcing service.
For more information about SS&C Singularity visit: www.ssctech.com/singularity
LinkedIn: www.linkedin.com/company/ss-c-technologies/
Twitter: @SSCTechnologies https://twitter.com/SSCTechnologies
The Innovation Tax May Lead to Increased Share Repurchase Activity. Read our related TEK2day article here: https://tek2day.com/2020/10/28/high-debt-levels-and-negative-ma-bias-are-crowding-out-innovation/
For more about TEK2day visit TEK2day.com
Apple Podcasts: https://podcasts.apple.com/us/podcast/tek2day-podcast/id1270002408
Spotify: https://open.spotify.com/show/3IybCrJs9ZPZTFPYlDg78b
Anonymously rate your company and CEO at CEORater.com
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Instagram: @CEORaterOfficial https://www.instagram.com/ceoraterofficial/
LinkedIn: www.linkedin.com/company/ceorater
About Our Sponsor:
SS&C Technologies (www.ssctech.com) is a global, market-leading provider of cloud-based investment accounting software, services and fund administration. SS&C’s AI-powered investment operations and accounting platform – Singularity – provides real-time, multi-basis accounting across a wide range of asset types with unparalleled automation and operational efficiency. Singularity is offered on a Software as a Service basis or via SmartSource – SS&C’s intelligent middle and back-office outsourcing service.
For more information about SS&C Singularity visit: www.ssctech.com/singularity
LinkedIn: www.linkedin.com/company/ss-c-technologies/
Twitter: @SSCTechnologies https://twitter.com/SSCTechnologies
Cryptocurrency Is Starting To Gain Recognition As A Store of Value. Read our related article here: https://tek2day.com/2020/10/21/cryptocurrency-is-starting-to-gain-recognition-as-a-store-of-value/
Read about our CEORater CEO Hall of Fame Class of 2020 members here: https://tek2day.com/2020/10/19/the-ceorater-ceo-hall-of-fame-class-of-2020/
Read about the lasting impact of COVID-19 on public transportation here: https://tek2day.com/2020/10/21/covids-lasting-impact-on-mobility/
Read about: Fraud – A Sign of The Times - here: https://tek2day.com/2020/10/16/fraud-a-sign-of-the-times/
For more about TEK2day visit TEK2day.com
Apple Podcasts: https://podcasts.apple.com/us/podcast/tek2day-podcast/id1270002408
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Anonymously rate your company and CEO at CEORater.com
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Instagram: @CEORaterOfficial https://www.instagram.com/ceoraterofficial/
LinkedIn: www.linkedin.com/company/ceorater
About Our Sponsor:
SS&C Technologies (www.ssctech.com) is a global, market-leading provider of cloud-based investment accounting software, services and fund administration. SS&C’s AI-powered investment operations and accounting platform – Singularity – provides real-time, multi-basis accounting across a wide range of asset types with unparalleled automation and operational efficiency. Singularity is offered on a Software as a Service basis or via SmartSource – SS&C’s intelligent middle and back-office outsourcing service.
For more information about SS&C Singularity visit: www.ssctech.com/singularity
LinkedIn: www.linkedin.com/company/ss-c-technologies/
Twitter: @SSCTechnologies https://twitter.com/SSCTechnologies
Institutional Investors Forgot They Have A Voice. PLUS – Big Tech Regulation.
It is amazing what institutional investors – especially large holders – put up with. Do Portfolio Managers communicate with CEOs any longer? PMs used to speak with management teams to provide feedback around capital allocation decisions, financial disclosures and more. My sense is that less of this interaction occurs today. Below we cover a few examples. We also cover yesterday’s proposed Big Tech regulation. Innovation will slow at each firm (Alphabet, Amazon, Apple, Facebook) regardless of what the FTC may or may not do.
Read the full article here: https://tek2day.com/2020/10/07/institutional-investors-forgot-they-have-a-voice-plus-big-tech-regulation/
For more about TEK2day visit TEK2day.com
Apple Podcasts: https://podcasts.apple.com/us/podcast/tek2day-podcast/id1270002408
Spotify: https://open.spotify.com/show/3IybCrJs9ZPZTFPYlDg78b
Anonymously rate your company and CEO at CEORater.com
Twitter: @CEORater https://twitter.com/ceorater
Instagram: @CEORaterOfficial https://www.instagram.com/ceoraterofficial/
LinkedIn: www.linkedin.com/company/ceorater
About Our Sponsor:
SS&C Technologies (www.ssctech.com) is a global, market-leading provider of cloud-based investment accounting software, services and fund administration. SS&C’s AI-powered investment operations and accounting platform – Singularity – provides real-time, multi-basis accounting across a wide range of asset types with unparalleled automation and operational efficiency. Singularity is offered on a Software as a Service basis or via SmartSource – SS&C’s intelligent middle and back-office outsourcing service.
For more information about SS&C Singularity visit: www.ssctech.com/singularity
LinkedIn: www.linkedin.com/company/ss-c-technologies/
Twitter: @SSCTechnologies https://twitter.com/SSCTechnologies
We recently wrote about the “Speculation Era” in Tech stocks. It doesn’t have to be this way. Institutional investors don’t have a gun to their heads forcing them to chase performance in companies such as TSLA and SNOW. Yet many are doing just that, throwing time-tested investment principles out the window. Many justify their outrageously expensive portfolio holdings based on out-year earnings estimates. No earnings? No problem. 50x revenue for ABC Inc? Sure. 100x revenue for XYZ Corp? Yes, I’ll buy some.
What’s driving this valuation mania? Two things in my view:
1.) Many portfolio managers don’t have a clue about the companies they own. They wouldn’t know a data mart from Walmart. Poor diligence and lack of understanding makes buysiders suckers for VC’s looking to float companies at exorbitant valuations. SNOW for example was valued at $12 billion in May – a rich valuation – only to go out at $30 billion on IPO day (Sept. 16th), and proceeded to more than double in value that same day. P.T. Barnum would love today’s buyside crowd.
2.) Buyside compensation models are too heavily-weighted to short-term performance. This leads to risky behavior and short-term decision making at the expense of long-term, consistent performance – i.e. “investing.”
Credit Spreads Will Widen as Job Losses Mount and Supply-Side Costs Increase.
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Spotify: https://open.spotify.com/show/3IybCrJs9ZPZTFPYlDg78b
Anonymously rate your company and CEO at CEORater.com
Twitter: @CEORater https://twitter.com/ceorater
Instagram: @CEORaterOfficial https://www.instagram.com/ceoraterofficial/
LinkedIn: www.linkedin.com/company/ceorater
About Our Sponsor:
SS&C Technologies (www.ssctech.com) is a global, market-leading provider of cloud-based investment accounting software, services and fund administration. SS&C’s AI-powered investment operations and accounting platform – Singularity – provides real-time, multi-basis accounting across a wide range of asset types with unparalleled automation and operational efficiency. Singularity is offered on a Software as a Service basis or via SmartSource – SS&C’s intelligent middle and back-office outsourcing service.
For more information about SS&C Singularity visit: www.ssctech.com/singularity
LinkedIn: www.linkedin.com/company/ss-c-technologies/
Twitter: @SSCTechnologies https://twitter.com/SSCTechnologies