“It’s a show-me stock”
General: A classic way to describe a company that has blown it.
When to use it: Any time you don’t know what a banged-up stock will do next–especially if you’re worried that viewers might think you were dumb enough to have owned it when it cratered.
Why it’s smart-sounding: It sounds tough, decisive, and judgmental. You’re not going to take management’s word for anything–not like those other idiots who just got blown up in the stock. You want to see the results. You want to make management show you that they can deliver, before you entrust them with your clients’ hard-earned money.
Why it’s meaningless: All stocks are “show me” stocks. If management “shows you” that they have delivered results that beat the market’s expectations, the stock usually goes up. If management “shows you” that they have blown the quarter, the stock tanks. Even when applied to the limited realm of companies that have just choked, if management “shows you” that they can deliver, they’ll show everyone else, too. The stock will go up before you can buy it. And then, once the stock goes up, management will have to “show you” that they can continue to do better. And so on. By the time you and everyone else finally trust management enough again to buy into their vision of the future, the stock will have soared–and it will then be time for management to show you that they’ve blown it again.