The Naughty and Nice Lists - Part One

Part One: The Naughty and Nice lists

Ever since my Aunt Charlene came in one day and said a buck-toothed armadillo had chased her back to the house I’ve tried to pay a little more attention to things: Just, you know…the details such as they can be determined. Now…in point of fact, I never believed aunt Charlene and the story about the buck-toothed armadillo for a couple of what I considered to be very good reasons. First of all Aunt Charlene was getting up there in years and I was pretty sure she couldn’t see much at all more than a few feet in front of her face. Second of all, Aunt Charlene was pretty much just off the boat from Italy and probably had no idea what an Armadillo even looked like. And lastly, Charlene was not what I would call a slight wisp of a lady - more like a dainty heifer if you understand what I mean; and any self respecting Armadillo - rabid, buck-toothed, or otherwise, would have been able to run her down and munch on her at will. At least that was my thinking at the time in the heat of the event.

Note: much later the family was to learn that it was a simple Black-Tailed Jackrabbit (they have big front teeth you know) that had wondered in and in the shadows of the afternoon woods had spooked her - but that tale is another story entirely.

What I am trying to say here - is that before anyone goes into hysterics they at least ought to know whether they are in a simple snow storm or perhaps a typical Rocky Mountain back country avalanche. Seems entirely reasonable to me in both skiing and in investing. I am sure the causal observer would in fact note the obvious. And thats why this post is starting at the beginning…almost. What I am going to do here is present a listing of companies and their earnings reports that I am interested in - even to the smallest degree, and then place them categorically in a Naughty List or a Nice List where applicable using my recently perfected company stock rating system: The Non-Empirically Related Atta Boy/Oh Poop Practical Scoring System. So…let’s get started.

First of all the system

As everyone knows, the Empirical Rule - also referred to as the three-signal rule, is a statistical formula which states that for normal distribution, almost all observed data will fall within three standard deviations of mean or average. Now whether this is entirely clear or not is meaningless to us because, as I mentioned originally, the ranking system I am using is Non-Empirical Rule related. So we can discard or ignore this particular rule as we move along; which may, or may not, serve to simplify the ranking procedures at hand…Maybe.

The Atta Boy/Oh Poop method is typical of my ever sharp, eagle eyed and owl like focus and attention to determining the exact nuanced meaning of any and every crucial data point and perhaps even marginally relevant minutia related to, or functioning influence upon, any given problem, to wit: If some particular facet or data point of an issue falls in the ‘Good’ category it then merits an: Atta Boy! On the other hand - and this point is entirely critical in mastering and attaining full interpretive value of the AttaBoy/Oh Poop system; if some particular facet or data point falls into the ‘Bad’ category it then is awarded an: Oh Poop! While this system is new to you and may be difficult at first to fully grasp and/or comprehend, to the degree necessary to make good investing decisions - if you work on it using my The Atta Boy/Oh Poop Ranking Worksheets (Sold in packets of 25 for just $14.99) you should be up and running with is as a Master of Atta Boy/Oh Poop Methodology in practically no time at all.

Note: For those individual investors who simply do not have the time or the inclination to master this process you can subscribe to the Atta Boy/Oh Poop Service for a small monthly fee of just $21.99.

Now we are ready to begin and in part two we will initiate the ranking and allocation of companies to the Naughty and Nice lists using their recent Earnings reports along with the recently perfected Atta Boy/Oh Poop Method. And…just to get things started here is our first company ranking:

NET: Reported on Q1 on May 5.

  • Revenue Growth 54% Y/Y: Atta Boy

  • Net Retention of 127%: Atta Boy

  • Customer Growth: Atta Boy

  • Non-GAAP Gross Profit Increased Y/Y: Atta Boy

  • Non-GAAP Operating Income Y?Y Improved: Atta Boy

  • Non-GAAP Net Income Improved: Atta Boy

  • Cash Flow Worsened: Oh Poop!

  • Revenue Guidance Next Qtr W/Typical Beat Margin: Atta Boy

  • Market Reaction to Report: Oh Poop!

  • Valuation High: Oh Poop!

NET ER Score: 7 Atta Boys/3 Oh Poops

List Assigned and List Ranking: NICE #1

Final Ranking Commentary: NET’s report was more of the same with its Revenue Growth in the 50% Plus range just like all its other reports. Given that it will Beat Revenue Guidance next QTR by its usual historical amount the beat down it received after its report was based solely on market sentiment and punishing Tech companies and their Valuation.

All the Best,


Here’s a remarkably thoughtful piece on NET from the NO SOUP FOR YOU board……

He’s saying what I’ve been saying about NET all along, except he says it better. My view on NET
is the only way it can grow is by borrowing money or selling stock. It doesn’t have an economic
advantage where it can self-finance its growth. It’s like me growing my savings account by borrowing
on my house. In both cases, growth just destroys economic value faster. And sooner or later it no
longer will be able to borrow or sell stock.

Best to you,


Hi Ears:

After some thoughtful consideration I have decided that your valuable commentary comes down solidly on the OH Poop side of things.

More to the point - it now occurs that some Oh Poops as well some Atta Boys perhaps have more tangible, if not apparently gradable, value considerations. For example:

Oh Poop in one category could simply be a regular old Oh Poop while perhaps in another category It’s significance requires more nuanced determination. This of course requires in-depth reconfiguring of the Atta Boy/Oh Poop Method to allow for gradients of both Atta Boys and Oh Poopness.

Special note: At the current time we are also planning to market the Atta Boy/Oh Poop Method to major really big companies like Walmart and DGDogs Hot Dog Emporium restaurants as a operational, product measuring system and customer satisfaction tool.

Gradients of the Atta Boy/Oh Poop Method could be extended into more nuanced precise measurements such as the following:

Really Good Atta Boy and/or Really Bad Oh Poop, as well as, Really Really Good Atta Boy and Really Really Bad Oh Poop. And so on and so forth.

These system wide adjustments could just represent the fulcrum that propels this event measuring system into not only wide spread adoption across a myriad of industries, international educational systems, and world wide governmental type stuff but also as a means of individual and personal performance assessment.

Once these entirely game changing tweaks are thoughtfully inserted into The Method we will plan for an imminent and exponentially successful IPO.

Note: Until we get this all bucked-out readers are encouraged to pilot use by winging it within their families. Please provide feedback as might be appropriate.

All the Best,


Yes, well, I’m not sure I understood all that, but invite your readers to try my new service called
BEYOND POOP, of which NET is the first recipient.



Is there any way to obtain your Top 25 Beyond Poop list? It would be exceptionally helpful to know which companies to avoid moving forward and would eliminate all this dubious and tiring research. Have you pitched this to The Fool as a potential new service?

All the Best,


Well you already are privy to my TOP 1 BEYOND POOP LIST™®©.

No, haven’t pitched it to The Fool yet. Still doping out the details. I envision it as a streaming
service. I was going to call it IMPOTHIBLE PITH until your post gave me a better idea.


Does that mean I get a commission?

Not trying to intrude upon your turf or anything - but for us lay people, it’s hard to imagine that NET would be #1 on the Beyond Poop List (BPL) due to the somewhat more intense and extraordinarily more odiferous potential of companies such as BROS, TDOC and the ever popular, HOOD.

Can’t you just - you know, as a teaser for your new service - give us a TOP Ten list? C’mon Man - us high growth at any price are dying out here: It’s a dog eat dog investing world and we’re all wearing milk bone underwear.

Hopeful - And all the Best,

Sure, you’ll get what we in the trade call a deferred commission. My boss used to tell me I’d get
one when pigs freeze over.

Geeze, I’d love to help you out, but right now I’m dealing with an emergency – I’ve got to find
someone who can fly this plane and didn’t have fish for dinner.