Doing it our way now: the approach this company pioneered is becoming the market's way
The model's full reasoning — Q4 2022 call → NOWe need to determine if management describes that the company's way of doing things is being adopted, copied, or moved toward by others in its market, and that management treats this as validation. Scanning the transcript: Juan Luciano discusses various initiatives. He mentions decarbonization, regenerative agriculture, BioSolutions, etc. He says "we are looking at multiple other pathways to reducing our carbon intensity" and "All of these projects contribute to our ability to offer low carbon intensity feedstocks and that is allowing us to continue to advance our work to transition our dry mills to produce sustainable aviation fuel; help scale up the scaled food products with new sustainable attributes, like the ingredients we will sell to Pepsi from the regenerative agriculture agreement we announced last year, and propelled the expansion of BioSolutions with joint ventures like with LG Chem." This is about their own initiatives, not about others adopting. He also mentions "We have now approved the scope for the first 2 years of the program, encompassing 18 manufacturing facilities. We continue to expect double-digit returns from this important initiative." That's about their own productivity. No mention of competitors copying or adopting their approach. No mention of industry standards converging on their design. No mention of new entrants modeling themselves on ADM. The only possible hint is when he says "we are continuing to explore opportunities around precision fermentation" but that's not about others. The analyst questions don't bring up such a phenomenon either. Management does not describe any external adoption of their methods. Thus, answer NO.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| AES | The AES Corporation | Q1 2024 | 2024-05-03 | C+ |
| GGR | Gogoro Inc. | Q1 2023 | 2023-05-11 | D |
| TGT | Target Corporation | Q4 2022 | 2023-02-28 | C |
| ORAN | Orange SA | Q2 2018 | 2018-07-26 | B |
| USFD | US Foods Holding Corp. | Q1 2018 | 2018-05-12 | C |
| SHOO | Steven Madden, Ltd. | Q1 2017 | 2017-04-21 | C |
AES · Q1 2024 → YESThe question is: Does management describe that the WAY THIS COMPANY DOES THINGS is NOW BEING ADOPTED, COPIED, OR MOVED TOWARD BY OTHERS IN ITS MARKET, so that the company's own way of doing things is ...
GGR · Q1 2023 → YESThe question is: Does management describe that the way this company does things is now being adopted, copied, or moved toward by others in its market?
TGT · Q4 2022 → YESThe question is: Does management describe that the way this company does things is now being adopted, copied, or moved toward by others in its market?