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Analysis Lens

Gravy Gauge

Is this revenue durable, or does it depend on conditions that could change?

5
Stages
2
Core Signals
2
Related

Additional derived signals may emerge during analysis based on company-specific findings.

The Gravy Gauge detects revenue that looks real but depends on fragile external conditions — regulatory arbitrage, customer concentration, platform dependency, or resource constraints.

This lens asks: "Is this gravy train sustainable, or is it one rule change away from collapse?"

Historical Inspiration
Inspired by Michael Burry's 1994 analysis of rehab hospitals, where "real" revenue evaporated when a regulatory loophole closed. The gravy train was real, until it wasn't.

Signals Produced

What This Lens Catches

Regulatory arbitrage

Example: Revenue from billing code loopholes

Look for: Policy dependency disclosures, CMS/FDA exposure

Subsidy dependency

Example: Profitability requires tax credits

Look for: IRA credits, government subsidies in financials

Platform lock-in

Example: App store takes 30%, could change terms

Look for: Platform concentration, terms of service risk

Monopsonist buyer

Example: 50%+ revenue from one government agency

Look for: Customer concentration disclosure

Resource constraint

Example: Data center growth limited by grid capacity

Look for: Supply chain dependencies, capacity limitations

Analysis Stages

1

Revenue Composition

Where does the money actually come from?

2

Regulatory Dependency

Does revenue depend on specific policies or loopholes?

3

Customer Concentration

Is there a dominant buyer whose constraints matter?

4

External Constraint Mapping

What could kill this revenue stream?

5

Sustainability Timeline

If it breaks, how fast does revenue disappear?

What This Lens Does NOT Do
  • Assess accounting manipulation (that's Fugazi Filter)
  • Assess funding/solvency (that's Stress Scanner)
  • Make buy/sell recommendations
  • Predict timing of regulatory changes

Technical Details

Complexity:4-5 stages
Type:hybrid

Related Lenses

Analyzed With This Lens