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Incomprehensible Analyst Jargon of the Day



September 10, 2009 – Comments (3)

The award goes to Goldman Sach's Michelle Tan, who yesterday asked Under Armour execs the following: And then finally, wrapping up on capital allocation, how do you think about spend going forward? Do you see accelerated dollars?

3 Comments – Post Your Own

#1) On September 10, 2009 at 9:57 AM, TMFCanuck (88.88) wrote:

Not completely apples to apples, but I'd be remiss if I didn't call out this great moment from CNBC.

The set-up:

Quant finance egghead Paul Wilmott of goes on with Kudlow.  He basically says that the finanical system is essentially unchanged and as vulnerable to crisis and shock as er it were.  He blames fast, computerized trading, which, he says, decouples asset prices from value.  

Kudlow immediately loses the plot and interrupts Wilmott to ask (paraphrased) “What does math say is undervalued?”

Wilmott tries to respond suitably nicely (i.e. not calling Kudlow an idiot), but Kudlow persists - "What’s undervalued? What’s undervalued?”

Wilmott continues to demur - preferring not to be drawn into giving stock tips.  This is when Trish Regan decides to "help" by asking Wilmott what he sees that is "Overvalued?”

Wilmott - realizing that he's not actually there to talk market brittleness and asset price/value decoupling (and probably mentally noting to self to not bother with heavy-breather Kudlow again) finally throws them a bone - saying that he'd use options to bet on making money on a large move in either direction - essentially, that he'd buy a market straddle.

The answer, of course, sails completely over Trish and Larry's tiny little heads...just glorious!


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#2) On September 10, 2009 at 10:15 AM, TMFBent (99.25) wrote:

Wait, you mean that talking heads like Kudlow and bright shiny baubles like Trish might be just vapid script-readers?

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#3) On September 10, 2009 at 1:07 PM, TMFCanuck (88.88) wrote:

I know...shocking, isn't it?

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