-
Share
7,466 Posts.
2161
10/02/18
01:03
Share
This is great article from the Motely Fool summarising some red flags short sellers look out for in potential opportunities.
https://www.********.au/2018/02/09/6-ways-top-investors-avoid-losing-companies/
1. Reported earnings not matching cash-flows
2. Earnings dependent on management assumptions
3. Obscuring earnings growth through acquisitions and equity raising
4. Off-balance sheet financing arrangements
5. Businesses with no competitive advantage and a weak market position
6. High turnover of management and directors
How many can you see in the current situation at IMS?
I think I count 4-5 of the 6 red flags outlined above, all at the same time.
-