Comments for The Alpha Factor http://ballgroup.com A revolutionary new look at what really creates market dominance and self-sustaining success Sat, 05 Jul 2008 10:50:22 +0000 http://wordpress.org/?v=2.5.1 Comment on GE’s stock drop indicative of much bigger problems for American business by wball http://ballgroup.com/2008/05/05/ges-stock-drop-indicative-of-much-bigger-problems-for-american-business/#comment-34 wball Wed, 07 May 2008 14:25:13 +0000 http://thealphafactor.com/2008/05/05/ges-stock-drop-indicative-of-much-bigger-problems-for-american-business/#comment-34 Thanks, Kelly. As an insider at GE, you must be extremely exasperated at the knee-jerk reacton of stock analysts and institutional buyers to this situation. As I did the research for "The Alpha Factor," I really began to get excited as I realized that what I was uncovering was a new way to assess a company that was far more predictive of future success. Not only was a low Alpha Factor score highly predictive of share loss when a competitor raised its Alpha Factor score, more importantly, it was easy to predict future growth of a company as its Alpha Factor score rose over time compared to its competitors. Two things typically confounded that success potential: 1) lack of confidence among top management, so they slipped into "competing" when they really did not need to, and 2) self-destructive short-term profit generation tactics designed to shore-up short-term profit numbers for the benefit of stock analysts. The book, which is available for "pre-order" through online booksellers, gives much more detail about how the revenue side can be managed as effectively as the cost side is. If you read it, I would welcome your comments and critique. Best wishes, Wes Thanks, Kelly. As an insider at GE, you must be extremely exasperated at the knee-jerk reacton of stock analysts and institutional buyers to this situation.

As I did the research for “The Alpha Factor,” I really began to get excited as I realized that what I was uncovering was a new way to assess a company that was far more predictive of future success. Not only was a low Alpha Factor score highly predictive of share loss when a competitor raised its Alpha Factor score, more importantly, it was easy to predict future growth of a company as its Alpha Factor score rose over time compared to its competitors.

Two things typically confounded that success potential: 1) lack of confidence among top management, so they slipped into “competing” when they really did not need to, and 2) self-destructive short-term profit generation tactics designed to shore-up short-term profit numbers for the benefit of stock analysts.

The book, which is available for “pre-order” through online booksellers, gives much more detail about how the revenue side can be managed as effectively as the cost side is. If you read it, I would welcome your comments and critique.

Best wishes,

Wes

]]> Comment on GE’s stock drop indicative of much bigger problems for American business by Kelly http://ballgroup.com/2008/05/05/ges-stock-drop-indicative-of-much-bigger-problems-for-american-business/#comment-33 Kelly Wed, 07 May 2008 13:25:54 +0000 http://thealphafactor.com/2008/05/05/ges-stock-drop-indicative-of-much-bigger-problems-for-american-business/#comment-33 Totally agree and extremely well written. When the short sighted goals are all that matters the company will not be successful over the long term. Totally agree and extremely well written. When the short sighted goals are all that matters the company will not be successful over the long term.

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