Aug. 5 at 11:18 PM
After going through losses with
$PSIX and
$FLNC (both in Q1), my biggest lesson is:
When gross and net margins start deteriorating, it’s often a warning sign.
It can mean a company is:
• Losing pricing power
• Facing rising cost pressures
• Dealing with operational inefficiencies
Revenue growth alone is not enough.
A company can grow quickly and still destroy shareholder value if margins continue to decline.
The lesson:
Watch the numbers behind the story.
Strong businesses don’t just grow — they maintain pricing power, improve efficiency, and expand profitability.
When the fundamentals start breaking, don’t ignore the warning signs.
Sometimes the best decision is knowing when to walk away.
