Methodology
Fortune 500 today, bankrupt tomorrow.
Businesses have significantly increased their overall risk through debt, diversifying into areas where it lacks expertise, and constructing high-risk transactions. Many corporate ventures have the potential of bankrupting the entire organization. Plus, many executives feel increasing pressure to "make the numbers," which has resulted in numerous high-profile cases of fraud, impropriety, or other illegal activities.
Our analytical process combines elements of forensic accounting and criminal investigative techniques to analyze and detect internal problems within publicly-held companies. We provide actionable analysis to the investment community, which enables them to make investment decisions with a more in depth and comprehensive understanding of management's candor and forthrightness.
Our philosophy places the onus on the company to provide clear and transparent information to the investor. It is the company's responsibility to ensure stakeholders understand what they are doing and why. Any ambiguity, vague explanation, or inconsistency is viewed with suspicion.
Our research model aggregates numerous indicators that detect potential deception and misleading statements and actions. Identifying these indicators provide investors with greater insight into companies that may restate results, have a material weakness, or conceal various other operational or legal issues.
Our primary focus is on financial transparency and managerial statements and actions (behavioral assessment). Financial transparency focuses on evaluating the quality and depth of information provided by the company in areas such as: financial statements, legal proceedings, operations, M&A, etc. The behavioral assessment analyzes managerial statements, responses to questions, and other actions in order to determine if management is deceiving investors. If misleading behavior is detected, we determine the extent of the behavior, and we also attempt to identify why management is concealing or misleading investors.
To view sample research reports, click on the following links: IBM Q3, 2009.pdf Boeing Q2, 2009.pdf 3M Q2, 2009.pdf
Businesses have significantly increased their overall risk through debt, diversifying into areas where it lacks expertise, and constructing high-risk transactions. Many corporate ventures have the potential of bankrupting the entire organization. Plus, many executives feel increasing pressure to "make the numbers," which has resulted in numerous high-profile cases of fraud, impropriety, or other illegal activities.
Our analytical process combines elements of forensic accounting and criminal investigative techniques to analyze and detect internal problems within publicly-held companies. We provide actionable analysis to the investment community, which enables them to make investment decisions with a more in depth and comprehensive understanding of management's candor and forthrightness.
Our philosophy places the onus on the company to provide clear and transparent information to the investor. It is the company's responsibility to ensure stakeholders understand what they are doing and why. Any ambiguity, vague explanation, or inconsistency is viewed with suspicion.
Our research model aggregates numerous indicators that detect potential deception and misleading statements and actions. Identifying these indicators provide investors with greater insight into companies that may restate results, have a material weakness, or conceal various other operational or legal issues.
Our primary focus is on financial transparency and managerial statements and actions (behavioral assessment). Financial transparency focuses on evaluating the quality and depth of information provided by the company in areas such as: financial statements, legal proceedings, operations, M&A, etc. The behavioral assessment analyzes managerial statements, responses to questions, and other actions in order to determine if management is deceiving investors. If misleading behavior is detected, we determine the extent of the behavior, and we also attempt to identify why management is concealing or misleading investors.
To view sample research reports, click on the following links: