Commentary/Analysis
Many companies undertake change programs and initiatives, such as 70 to 1 forward split efforts to add new profitable products. What sparked the decision to undertake a major transition?
Most of the TIME, its outside consultants and advisors, who plant these kinds of ideas, and concepts into the minds of these CEO's
Sure, we could list 100's of particularly powerful examples or even vignette from our own experiences or maybe observations that, such bold, progressive moves, can generate huge revenue stream.
BUT, can it endure?
In most cases, it can't endure.
I've worked on several Special Analysis Units, these units were designed to she'd light on this exact question.
Transition Point $.0009 per share, can be observed on price chart data sheet.
The ratio of cumulative stock returns, after the Transition point, 63% of the time, can't be sustained after the initial mark up.
Of course, in the meantime, Common shareholders, are in a state called The STOCKDALE Paradox
In every case, The STOCKDALE Paradox, took it toll on the shareholders.
Not many can stoically accept the brutal facts of reality.
Shareholders live on with torture, no rights, no set release date, and no certainly as to whether they would survive to see net gain in their investment dollar.
The company, sets up communications systems, to reduce the sense of isolation.
Many shareholders get depressed, and either end the ordeal, or just lose faith.
POW of Premier Brands Inc. will teach that life is not fair, sometimes to our advantage, sometimes to our disadvantage.
Very few will have the faith that in the end regardless of the difficulties, all will work out.
Victory! Only comes to those who can endure to the bitter end.
Leadership does not begin just with a vision, it begins with getting people to confront the brutal facts, and to act on the implications.