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 the market would bear, and that it is actively closing that gap. The transcript is about Goldman Sachs. The question is about pricing, rates, fees, terms. In the context of a bank, this could be about lending rates, deposit rates, fees, etc. Management discusses various businesses. Let's scan for any mention of pricing being below market, undercharging, raising prices, etc. Key points: They discuss strategic transitions, reducing capital intensity, etc. They mention "private banking and lending" revenues, "record" revenues. They discuss "management and other fees" increasing. They discuss "net interest income" and "loan portfolio". They discuss "provision for credit losses" and "net charge-offs". They discuss "consumer platforms" and "GreenSky". They discuss "credit card partnerships" with Apple and GM. They mention "we continue to have a very strong deposit platform" and "Apple savings platform" to grow deposits. They discuss "we are working with Apple and also with GM to improve the operation" of credit card partnerships. They say "the drag of those credit card partnerships has gotten smaller and it will continue to be reduced as we move forward into 2024." That is about reducing losses, not about raising prices. Is there any mention of undercharging? No. They talk about "pricing" in the context of "we are focused on reducing that drag" but not about raising rates. They mention "net interest income" but not about raising rates on loans or lowering deposit rates. They mention "we have a very strong deposit platform" and "Apple savings platform" to grow deposits, but that is about attracting deposits, not about charging more. The question is about charging less for what they sell. For a bank, that could be loan rates, fees, etc. There is no mention of management saying they are undercharging relative to value. They talk about "management and other fees" increasing due to higher assets, but that is not about raising fees. They also discuss "we are making progress" on reducing efficiency ratio in Platform Solutions. But that is about costs, not pricing. Thus, no evidence of management claiming a pricing gap and closing it. 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.