Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Bankruptcy Predictor Model -- Ignore unavailable to you. Want to Upgrade?

To: Razorbak who wrote (29)	3/15/1999 3:32:00 PM
From: Paul Berliner	Read Replies (1) \| Respond to of 477

I simply picked 10 companies at random that had been financially troubled at that time & crunched the numbers... One piece of garbage that I did the ratio on at that time that surprisingly came out totally solvent was CAMD - California Micro Devices - which was in the beginning of its still-prevalent downspell yielded by an expose of accounting shenanigans. I took the restated financials and CAMD tested solvent (the stock still hasn't recovered though). I also tried a couple of penny stocks and biotech companies that had no revenues or just interest income and only the most cash-hungry were insolvent. The main ingredient missing from the equation is one that cannot be added - and that is the amount of debt due within 1 year that the equation might indicate that the company won't be able to pay - i.e. short term debt and current portion of long term debt.