Skip to main content

Tragic Algebra

Delta-E Pooled Screening

Detecting companies whose equity has quietly compounded through issuance, convertibles, or warrant dilution — the "tragic algebra" where share count growth erodes per-share value even as the business line screams green.

Sector Rollup

Weighted mean Delta-E and Tragic Tier count across 6 sectors (103 tickers)

Consumer Disc.

11.5%

6 in tragic tier

Energy

14.3%

3 in tragic tier

Health Care

6.8%

8 in tragic tier

Industrials

9.1%

2 in tragic tier

Technology

8.2%

20 in tragic tier

Financials

7.4%

1 in tragic tier

Delta-E × Log Market Cap

Drag the slider ends to zoom the market-cap range; scroll inside the chart to pan. Small-cap clusters are easier to read when the big caps aren't crowding the frame.

Tragic Tier · 40 tickers

TickerΔ-EMkt CapSector
CRSR24.8%$1.2BConsumer Disc.
LQDT22.1%$280MIndustrials
ANGO21.5%$320MHealth Care
CWST19.8%$4.1BIndustrials
HRTX18.6%$190MHealth Care
MORF18.2%$850MHealth Care
QUAD17.9%$240MIndustrials
HMST17.3%$370MFinancials
BOIL16.8%$1.8BEnergy
XHMR16.4%$92MTechnology
HGOX15.9%$440MEnergy
VRSK15.3%$36.0BIndustrials

Methodology Notes

  • Delta-E (pooled) measures cumulative equity issuance — common shares, convertible dilution, and warrant exercise — normalized to market cap over a 5-year look-back.
  • "Tragic tier" flag triggers when Delta-E pooled exceeds the sector median by more than 2 standard deviations, indicating quiet share-count creep masked by headline revenue or earnings growth.
  • Data sourced from SEC EDGAR via edgartools structured extraction. No LLM parsing. 103 tickers covered across 6 sectors. Screening refreshes after each quarterly filing season.
  • Limitations: backward-looking; does not adjust for capital-efficient dilution (buybacks, spin-offs, or accretive M&A); small-cap names under $200M market cap may lack statistically meaningful baseline.

Data as of Apr 17, 2026

CITATION

Framework: "Tragic Algebra"

Published by M. Burry

Substack, April 2026