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Case Study: Scam, Fantasy or Fraud
Take your pick.
This case is a series of press releases and recent financial filings of
A+ plus anemail prize
point out what in the financial statement would cause any shareholder (God,forbid if you were a shareholder thinking this was a good long-term investment) to becomeill.
What strikes you as particularly toxic for the common shareholders? Also, list three or four Red Flagsthat you as a potential investor would notice. Tomorrow, I will post my analysis of these documents.You should be able to skim through the 100 pages
skipping over the superfluous
and find the key areasto look at. We are in the dark world of Penny stocks, pump and dump frauds, and mafia-controlledstock
far, far away from investing in franchise companies like IBM. But inverting and looking at theunderbelly of the stock market can teach us lessons. Yes, what to avoid, but also about human nature.I am asked to be placed on Penny stock email lists because occasionally I find wonderful shorts. Thisexample is not an example of what to short but how to find trouble in a financial statement.