PrezEl Corp Audited Results

PrezEl Corp audited results for the years 2016 and 2020 have been published. According to information available to the public at this time the results for the two years compare as follows:
1) For the year 2016, total revenue from core business was ~ $62.9 million. After announcement of results PrezEl Corp stock experienced a bump despite a loss of ~ $2.8 million. This was attributed to the better than expected revenue and mention about steps to cut down expenses in the earnings call. Per PrezEl management the full benefit of the measures would be visible in the years ahead with profit being forecast from 2020 onwards
2) For the year 2020, total revenue from core business was ~ $74.2 million. Per guidance in earlier earnings call/s, profit was expected for the year 2020. Even though revenue increased ~ $11.3 million from 2016, losses widened to ~ $7 million instead. This was attributed to unexpected adverse market conditions by PrezEl management. PrezEl stock slumped after the announcement of 2020 result as the market was disappointed by PrezEl management inability to adapt to changing market conditions. The company had projected profit as recently as the 3Q earnings call just a few months earlier.
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Substitute the above fictional PrezEl Corp with Presidential Election. Total revenue represent the actual total votes cast for Republican Party Presidential candidate and Total expense represent the actual total votes cast for Democratic Party Presidential candidate, for the years 2016 and 2020. It’s clear as day Republican Party has been hemorrhaging votes to the benefit of Democratic Party. Gain of 11.3 million votes in 2020 is illusory as it masks the greater shift in support to Democratic Party in 2020. It’s the equivalent of brick-and-mortar stores seeing more foot traffic but still losing shoppers to online retailers. With no available evidence of widespread fraud there was no chance to boost other income (line item# 5) to totally offset the difference. If at least a few of the party leaders had forcefully stated, publicly and firmly, to stop the baseless election fraud allegations even as late as last weekend the mess that was witnessed in US Capitol earlier this week could have been avoided. The question then becomes why were they either silent or supporting the effort? Based on what we have seen over the past few years fear of career destruction trumped the acceptance of reality, I can think of no other explanation 🙏

Ardern’ed victory!

Few days ago Labor Party in New Zeland won outright parliamentary majority and in the process another term as Prime Minister for Jacinda Ardern ( https://www.bbc.com/news/world-asia-54519628 ). The victory appears to be hard-earned (I prefer the similar sounding Ardern’ed) as the Ardern-led Government has had to deal with, in this term, a terrorist attack in Christchurch, a natural disaster when the White Island/Whakaari volcano erupted, and COVID-19 pandemic too.

Sound familiar to Northerners on the other side of Pacific?

It’s instructive how the NZ Government handled the terrorist attack and COVID-19 pandemic in their country. In the aftermath of the terrorist attack the Government first acknowledged a need for action and, within a short time, issued a ban on possession of semi-automatic weapons and assault rifles. The Government has also garnered praise for its handling of the COVID-19 cases and for success in measures taken to contain the spread. Obviously it has come with a price. Travel and tourism would have taken a big hit and the country is in recession now. For a country with ~ 5 million total population a major outbreak would have been a great setback. Yet, with good implementation of safety measures the country is back to as-close-to-normal-as-possible at this time. I do not follow NZ news regularly. Obviously terrorist attack points to existence of some individuals or fringe groups intent on creating racial/religious tension in society (which can be expected in any country). It’s the response to such tragedies that makes a big difference. Likewise COVID-19 related measures likely caused hardship to people while making the country safer. It’s also likely some mistakes were made and lessons learned in an evolving situation ( https://www.usnews.com/news/best-countries/articles/2020-10-23/pandemic-leadership-lessons-from-new-zealands-elections ). Going by the result of general election – a resounding majority for the incumbent, the people have approved the performance. That’s not to say everything must have been done perfect. The lesson to learn, in a functioning democracy, is that if the leaders share known facts people understand and are also more forgiving of honest mistakes made. No economy can survive being shut for a long time and it’s not easy to balance safety with minimal economic impact. It’s good to see transparency and sincerity still matter. Wish it could be replicated on a bigger scale by other countries too 🙏