Chris Hikel

[Chris Hikel @ChrHikel]

@ChrisCinciBiz An interesting but controversial private equity strategy: buy a dying business cheaply, then cut costs faster than revenue declines. The business eventually fails, but investors can still walk away with a solid return.

[Chris Hikel @ChrHikel]

@purplebaptist @mattyglesias Congress could easily pass a law giving the president authority to negotiate tariffs within a certain boundary. They already did this in section 232 in section 303 for certain types of tariffs. Furthermore, Congress has to ratify trade treaties anyway. So it could always be done.

[Chris Hikel @ChrHikel]

@jeffreysms The metro area is growing… I would not be surprised to learn that the city proper has shrunk in pop since 2020?

[Chris Hikel @ChrHikel]

@michaelpatron0 Antitrust

[Chris Hikel @ChrHikel]

@nebraskabryce This is literally why the mafia originally came into being… the police were useless and mafia offered protection.

[Charlie Bilello @charliebilello]

The US Inflation Rate (CPI) has moved down from a peak of 9.1% in June 2022 to 3.2% today.

What's driving that decline? Lower rates of inflation in Gas Utilities, Fuel Oil, Gasoline, Used Cars, Apparel, New Cars, Food at Home, Medical Care, Electricity, and Food away from Home.

Shelter and Transportation are the only major components that have a higher inflation rate today than June 2022.

[Charlie Bilello @charliebilello]

The best data point in the CPI report?

Lower food price inflation.

At 1.0% YoY, that was the smallest increase we’ve seen since June 2021, down from a peak of 13.5% in August 2022.

[Chris Hikel @ChrHikel]

@SullyBusiness HVAC. Hugely in demand, service/repair business will make you intensely busy during heat waves & cold snaps, and the rest of the time you can do installs.

[Chris Hikel @ChrHikel]

@investing_law 300k people, but Cincinnati, OH. Some of the best food, walkable neighborhoods, arts, parks, and historic architecture.

[Chris Hikel @ChrHikel]

@ThatSTRGuy I wonder if they are cutting costs in advance of the Metro Lofts damages ruling. They’re delaying with appeals but eventually lawsuits like that one will hobble Sonder’s ability to operate & invest in growth. Based on court docs damages will be min 20% of their remaining cash.

[Chris Hikel @ChrHikel]

@thedukeofcincy I was surprised that a majority of millennials are now homeowners & in Cincy metro 57% are. I think this will increase a lot when rates drop and the housing market unlocks. There’s so little inventory, but there’s pent up demand on buy & sell side.

[Chris Hikel @ChrHikel]

@SBA_Matthias From seller side, possible to get biz being sold “pre-approved”?

[Chris Hikel @ChrHikel]

@SMB_Attorney In sum: this decision makes Delaware look predictable & beneficial for shareholders who want maximum protection & assurance against the actions of a captive board… which is one reason why so many corps domicile there.

[Chris Hikel @ChrHikel]

@SMB_Attorney Those saying this makes Delaware look bad are missing the forest for the trees. This case shows the importance of having an *independent* BOD. Under Delaware law, the burden of proof in a case against a corporate action (e.g. exec comp) is usually on the plaintiff. However …

[Chris Hikel @ChrHikel]

@SMB_Attorney If Tesla had an independent board, the burden of proof in court would’ve gone the other way. Plaintiff would have had to prove plan was unfair & unnecessary.

[Chris Hikel @ChrHikel]

@SMB_Attorney b) failed to make a rational argument that the comp plan focused Musk’s attn on Tesla, which was core part to the Board’s argument about why the pay plan was necessary (see Musk’s divided attn: Spacex, Neuralink, Boring Co, Twitter/X, SolarCity, politics, etc).

[Chris Hikel @ChrHikel]

@SMB_Attorney … lack of independence board caused burden of proof to flip from plaintiff to Tesla (instead of the reverse).

Judge then ruled that a) internal docs showed the board intentionally lied to or misled Tesla shareholders about the difficulty of hitting the milestones, and…

[Chris Hikel @ChrHikel]

@SMB_Attorney So … The judge determined that the company’s board wasn’t independent, which many corporate observers have been saying for years —it was stacked with Musk’s family & friends (and still lets him get away with too much). This caused burden of proof in the case to flip…

[Chris Hikel @ChrHikel]

@SMB_Attorney However… if a board is demonstrably not independent then under Delaware law, the burden of proof flips and the company must *prove* that the pay plan was fair and necessary.

Nobody disputes that Tesla board was stacked w Musk’s fam & friends. So,,,