The relative riskiness of the business model types is the product of two dimensions:
Dependence: The Black Widow and the Pig are highly dependent upon a small number of customers for most (if not all) of their revenues.
Continuity: The Locust and Pig lose all of their customers once the transaction is complete.
As can be seen in the graphic (right):
The Pig is the model with the highest level of risk (low continuity, high dependence)
The Locust and Black Widow are both models with moderate riskiness
The Chicken is the low risk model-type
Schuff International (Pink Sheets: SHFK) is one of the leading steel erectors in the U.S. It specializes in sports arenas and casinos.
The company's stock chart diagrams its history of earnings and revenue turbulence. Look closely at the quarterly price swings from the fourth quarter of 2006 through the third quarter of 2008.
Schuff is a fascinating company. Tremendously talented, specialized within its niche, possessing a stellar reputation ... yet financially volatile by virtue of its Pig nature. They are also a bit harder to learn about than most companies mentioned on this site. Schuff's 10K filings stopped in 2004 when the company decided to trade on the over the counter market. Its most recent filings (quarterly and annual) are available at www.pinksheets.com.
