It's definitely possible for directors to be deceptive in any company. They can claim that everything is going well, or everything is on track to turn around when actually it won't.
But liquidation etc, there's a higher chance when debt levels are moderate or high. No debt or minimal debt is normally safer, from bankruptcy at least.
Having deep knowledge of the situation (or industry), in excess of what management announce can help. Or simply investing in ETFs to avoid the deceptions of individual directors.
SIV Price at posting:
65.0¢ Sentiment: Buy Disclosure: Held
