Room to raise the ceiling: management says its own prices, rates, or terms sit below what the market would currently bea
The model's full reasoning — Q2 2023 call → NOWe need to determine if management conveys that the company is currently charging less than market value and is actively closing that gap. Search transcript for pricing, rates, fees, terms, undercharging, etc. Key points: Management discusses strong volumes, record volumes, but also mentions lower commodity prices affecting results. They talk about growth projects, expansions. They mention "higher contracted volumes and rates" in interstate segment. They mention "higher transportation, storage and terminal services margins related to increased volumes and higher rates" in NGL segment. But is there a claim that they are undercharging relative to value? They mention "we continue to target a 3% to 5% annual distribution growth rate" etc. No explicit statement about pricing below market or closing a gap. They mention "we have been undercharging" or "leaving money on the table"? Not seen. They talk about "higher rates" but that's just rate increases, not necessarily below market. They also mention "we are in discussions to add approximately 1 Bcf of capacity via compression" etc. No pricing gap. They mention "we continue to discover additional commercial synergies" but that's about acquisitions. No mention of pricing power or undercharging. So answer NO.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| MEC | Mayville Engineering Company, Inc. | Q3 2022 | 2022-11-05 | B+ |
| CAG | Conagra Brands, Inc. | Q2 2017 | 2016-12-22 | C+ |
| SOHO | Sotherly Hotels Inc. | Q3 2016 | 2016-11-08 | D |
| RCL | Royal Caribbean Cruises Ltd. | Q1 2016 | 2016-04-29 | C+ |
| HPP | Hudson Pacific Properties, Inc. | Q4 2015 | 2016-02-25 | C |
HPP · Q4 2015 → YESThe question is: Does management convey that the company is currently charging LESS for what it sells than the market would presently bear — that its own prices, rates, fees, or terms sit meaningfully...YES The transcript shows management explicitly describing a gap between its current charges and what the market now supports, then confirming that the company is already closing it through mark-to-market resets and higher new/renewal rents. Victor Coleman states that the company has “rolled out 80% plus mark to market” on recent leases 2.5 years old, and that cash rent spreads on 1.6 million square feet executed since the acquisition were “north of 30%” with “20%, 25% mark-to-market for 2016 and 2017.
MEC · Q3 2022 → YESThe question is: Does management convey that the company is currently charging LESS for what it sells than the market would presently bear — that its own prices sit meaningfully below the value custom...YES Management explicitly states that they have taken pricing actions in 2022 and have "more room for margin expansion through continued value pricing even beyond the pricing actions taken during 2022." This conveys that their current prices sit below what the market would support, and they are actively beginning to close that gap with further value pricing.
SOHO · Q3 2016 → YESThe question is: Does management convey that the company is currently charging LESS for what it sells than the market would presently bear — that its own prices, rates, fees, or terms sit meaningfully...YES The transcript shows management explicitly identifying a rate gap at the Laurel hotel (and similar situations at other properties) where current charges sit below the competitive set/market, while describing active steps already underway to close that gap through continued ramp-up and occupancy/rate improvements.