The Carly Catapult

by Johnny Debacle

Yesterday, Yahoo (NASDAQ: YHOO) parted ways with their non-email using CEO, Terry Semel. And the stock shot up 8%. A textbook example of the Carly Catapult.

The Carly Catapult is so named for the erstwhile Hewlett-Packard (NASDAQ: HPQ) CEO Carly Fiorina, whose tenure as CEO was so successful and inspired so much confidence that the stock went up 7% on news she had been fired. Now she sells books written in crazy.

Recommendation: If you are ever in a situation where you cause a Carly Catapult effect, you should probably look to short any of your future attempts at value creation. The problem is that because you suck so hard, it’s likely that if you were to short your own value creation, you would probably destroy the implied destruction of value you hoped to create by trying to create actual value, thus killing your short. So really you should just kill yourself.

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