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Strategies & Market Trends : The Ego Forum

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From: hubris33	5/15/2013 5:58:18 PM
	of 12175

Veris Gold on Bankruptcy Watch....... ................ ................. News today looks grim for VG if one reads the Financials closely and extrapolates things. I had forgotten one of the reasons I was not a fan of VG, namely its Altman Z-Score. For those who might not be familiar with it, the Z-Score it is a metric developed by NYU Stern School of Business Professor Edward Altman which gages the likelihood of bankruptcy for a manufacturing company. Score below 1.8 suggest a company is probably headed for bankruptcy. Above 3.0 and there is little threat of bankruptcy Last year in November I calculated a Z-Score for VG of -0.79 after VG reported 3Q results, well below the 1.8 threshold level. Today, after recalculating based on 1Q13 results, I get a *Z-Score for VG of -1.56.* Now what one does with this information is their business.... maybe bold, speculative investors buy LT Put LEAPS? . . . . . . . btw - Z-Score for CGR fell from 1.92 in 3q2012 to 0.68 after 1Q2013 results. Working Capital Deficit and growing SHE deficit didn't help, nor the falling net sales. For comparison, BTO comes in at 2.97.

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