|Hockey Stick Projections|| |
The upward-slanting shape of a graph or chart, as if the blade of the hockey stick is on the ground in the left side of the picture, with the handle slanting upwardly toward the right side, as in a line graph showing successive, continuous increases period over period. Whether those increases are in revenues or any other financial or operational measure. However, most hockey stick projections, but not all, deal with revenues being projected by a company. The hockey stick increases dramatically and accordingly has good and bad connotations. A few entrepreneurs have been known to include hockey stick chart projections in their investor presentations. The hockey stick projections may seem or be suspicious and may or may not be credible. The investors in most of these offerings are accredited investors who are expected to think twice about hockey stick projections and look more deeply. If an investor does his due diligence, the investor will understand how the company makes money. In addition, the investor will see how much money the company is making and, more significantly, how much he thinks it would make at any given time and any given conditions. Hockey stick projections have a third connotation, which is that everything reverts to norm, and what increases like a hockey stick can decline like a hockey stick.