Sandbagging

Categories: IPO, Ethics/Morals

When a flood is imminent, people put bags of sand against the shores of rivers and lakes. The idea is that the sand absorbs the water and slows the flooding, hopefully saving a few basements along the way.

When a company sandbags, they try to keep estimates of financials pretty conservative. They publish underwhelming numbers so that when the real numbers come in, the company looks that much better. 

Underpromise, overdeliver.

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