Continuing our Financial Acronym of the Week series, I’d like to remind you that Pete the Cooler enjoys using financial acronyms to shorten very complicated financial terms, just like the masters of the universe of the financial world do. It sounds so slick, suave, and sophisticated to rattle off a bunch of terms to show your superior financial intellect. So today, you will learn the meaning of SAD.
You’ve likely heard traditional terms like: ACE, EBIT, EBITDA (just add DA), AAGR, CAGR, NPV, MBS, MIV, ROI, CFCT, CDS. And of course you’ve learned PtC’s signature term, Devastating Asset Decline (DeAD) to describe significant declines in value of an investment over a given period of time. You can find all of Pete the Cooler’s Financial Acronyms in the glossary.
As always, while using this terminology to show dominance, maintain a forced power pose while talking to ensure that others submit to your prowess or mistakenly assume you are a maniacal overlord scheming for world domination, before they return to Facebook and Twitter to their own future detriment.
Financial Acronym – SAD
For this week, I’ve coined the term: Suddenly Abandoned Demand (SAD) to describe the rapid deterioration of customer or investor interest leading to DeAD DIVA DIVE (Devastating Asset Decline, Depression from Investing in Volatile Assets, Depression from Investing in Volatile Equities.)
For example, Rite Aid Corporation
shareholders have suffered an 85% loss in value over the last 14 months. The company’s SAD performance is due to poor management which allowed debt to exceed rationality, the stores to look like the pre-murder moments in a horror movie, withdrew its Walgreen’s merger deal from consideration before the FTC’s final decision, and approved a sale of its remaining assets for pennies on the dollar. SAD!
There are a few of those shiny-shoe guys each year in the NY, Chicago, London, and Singapore skyscrapers who feel SAD. Pete the Cooler has seen SAD, and many businesses, investors and customers will witness SAD at some point. Don’t be surprised if you hear guys in suits talk about the some market participant getting SAD.
It seems like I would run out of these jewels eventually, but in the meantime I’ll keep rolling out financial acronyms weekly (or so) as we go down this PtC rabbit hole together.
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