The purpose of this thread is to bring to our attention companies that use creative and aggressive accounting practices, otherwise known as "cooking the books."
We do this for three reasons:
(1) To steer investors away from stocks that can adversely impact their net worth,
(2) To provide short sale candidates as a hedge for this extraordinary market,
(3) To serve as a learning tool in the course of becoming better investors.
Some examples that have fallen from grace: Boston Chicken, Centennial Technologies, L.A. Gear, Datapoint Corporation, and most recently, Transcrypt International.
A text I recommend on the subject is Financial Shenanigans by Howard M. Schilit.
All intelligent comments and observations are welcome. |
