How to assess the susceptibility of a U.S. company to go bankrupt?
$begingroup$
Suppose a NASDAQ equity XYZ
.
Question :
How can we assess the susceptibility of a company to go bankrupt? Are there good criteria that we can trust? What about the Buffett indicator?
How to evaluate the viability of a company on the stock market?
nasdaq
$endgroup$
add a comment |
$begingroup$
Suppose a NASDAQ equity XYZ
.
Question :
How can we assess the susceptibility of a company to go bankrupt? Are there good criteria that we can trust? What about the Buffett indicator?
How to evaluate the viability of a company on the stock market?
nasdaq
$endgroup$
1
$begingroup$
en.wikipedia.org/wiki/Ohlson_o-score
$endgroup$
– Alex C
3 hours ago
1
$begingroup$
Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf:www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
$endgroup$
– Emma
3 hours ago
add a comment |
$begingroup$
Suppose a NASDAQ equity XYZ
.
Question :
How can we assess the susceptibility of a company to go bankrupt? Are there good criteria that we can trust? What about the Buffett indicator?
How to evaluate the viability of a company on the stock market?
nasdaq
$endgroup$
Suppose a NASDAQ equity XYZ
.
Question :
How can we assess the susceptibility of a company to go bankrupt? Are there good criteria that we can trust? What about the Buffett indicator?
How to evaluate the viability of a company on the stock market?
nasdaq
nasdaq
edited 2 hours ago
Emma
1908
1908
asked 3 hours ago
fgauthfgauth
406
406
1
$begingroup$
en.wikipedia.org/wiki/Ohlson_o-score
$endgroup$
– Alex C
3 hours ago
1
$begingroup$
Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf:www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
$endgroup$
– Emma
3 hours ago
add a comment |
1
$begingroup$
en.wikipedia.org/wiki/Ohlson_o-score
$endgroup$
– Alex C
3 hours ago
1
$begingroup$
Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf:www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
$endgroup$
– Emma
3 hours ago
1
1
$begingroup$
en.wikipedia.org/wiki/Ohlson_o-score
$endgroup$
– Alex C
3 hours ago
$begingroup$
en.wikipedia.org/wiki/Ohlson_o-score
$endgroup$
– Alex C
3 hours ago
1
1
$begingroup$
Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf:
www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
$endgroup$
– Emma
3 hours ago
$begingroup$
Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf:
www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
$endgroup$
– Emma
3 hours ago
add a comment |
2 Answers
2
active
oldest
votes
$begingroup$
Since the stock is listed on NASDAQ, you have access to fairly standard 10Q and 10K financial statements. So you can apply the analysis pioneered by Ed Altman in his Z-score paper - compare this company's fundamental ratios with those of other companies, and see how many of them went bankrupt historically. For example, Moody's KMV uses this approach to estimate "EDF" (expected default frequency) for many corporate credits.
$endgroup$
add a comment |
$begingroup$
I have been told:
Bankruptcy is so very controversial.
You might track companies ratios (e.g., debt to equity ratio
, EPS
, net income
, etc.). For instance, GE looks almost bankrupt. But, its not and there is a very low probability that GE would file for any bankruptcy chapter, I'm just guessing.
There are many companies, especially in OTC markets, that many investors consider them "bankrupt", but "they are not" and their equities are being traded, e.g. OTCMKTS: HMNY
. Usually, theses companies are destined to takeover
, involuntary M&As
, and so.
Also, there are types of bankruptcies that you might take into account, not to mention the complexity of U.S. bankruptcy courts. Majority of good companies are incorporated in Delaware, which has a fairly advanced court to protect shareholders (e.g., Delaware Court of Chancery).
Pharmaceutical sector might be good to look into. You can use stock screener
tools to filter and find companies that are in serious financial situations. In fact, many small-account retail traders love to trade their equities since they are usually oversold
.
My favorites screeners
are:
Finviz
TradingView
Also, you can collect data from so many analyst websites. Such as:
Zacks.com
Barrons
Seeking Alpha
Thomson
GE on Finviz
New contributor
$endgroup$
1
$begingroup$
Can we discuss privately? Where have you got the photo from your answer?
$endgroup$
– fgauth
2 hours ago
add a comment |
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2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
$begingroup$
Since the stock is listed on NASDAQ, you have access to fairly standard 10Q and 10K financial statements. So you can apply the analysis pioneered by Ed Altman in his Z-score paper - compare this company's fundamental ratios with those of other companies, and see how many of them went bankrupt historically. For example, Moody's KMV uses this approach to estimate "EDF" (expected default frequency) for many corporate credits.
$endgroup$
add a comment |
$begingroup$
Since the stock is listed on NASDAQ, you have access to fairly standard 10Q and 10K financial statements. So you can apply the analysis pioneered by Ed Altman in his Z-score paper - compare this company's fundamental ratios with those of other companies, and see how many of them went bankrupt historically. For example, Moody's KMV uses this approach to estimate "EDF" (expected default frequency) for many corporate credits.
$endgroup$
add a comment |
$begingroup$
Since the stock is listed on NASDAQ, you have access to fairly standard 10Q and 10K financial statements. So you can apply the analysis pioneered by Ed Altman in his Z-score paper - compare this company's fundamental ratios with those of other companies, and see how many of them went bankrupt historically. For example, Moody's KMV uses this approach to estimate "EDF" (expected default frequency) for many corporate credits.
$endgroup$
Since the stock is listed on NASDAQ, you have access to fairly standard 10Q and 10K financial statements. So you can apply the analysis pioneered by Ed Altman in his Z-score paper - compare this company's fundamental ratios with those of other companies, and see how many of them went bankrupt historically. For example, Moody's KMV uses this approach to estimate "EDF" (expected default frequency) for many corporate credits.
answered 3 hours ago
Dimitri VulisDimitri Vulis
1798
1798
add a comment |
add a comment |
$begingroup$
I have been told:
Bankruptcy is so very controversial.
You might track companies ratios (e.g., debt to equity ratio
, EPS
, net income
, etc.). For instance, GE looks almost bankrupt. But, its not and there is a very low probability that GE would file for any bankruptcy chapter, I'm just guessing.
There are many companies, especially in OTC markets, that many investors consider them "bankrupt", but "they are not" and their equities are being traded, e.g. OTCMKTS: HMNY
. Usually, theses companies are destined to takeover
, involuntary M&As
, and so.
Also, there are types of bankruptcies that you might take into account, not to mention the complexity of U.S. bankruptcy courts. Majority of good companies are incorporated in Delaware, which has a fairly advanced court to protect shareholders (e.g., Delaware Court of Chancery).
Pharmaceutical sector might be good to look into. You can use stock screener
tools to filter and find companies that are in serious financial situations. In fact, many small-account retail traders love to trade their equities since they are usually oversold
.
My favorites screeners
are:
Finviz
TradingView
Also, you can collect data from so many analyst websites. Such as:
Zacks.com
Barrons
Seeking Alpha
Thomson
GE on Finviz
New contributor
$endgroup$
1
$begingroup$
Can we discuss privately? Where have you got the photo from your answer?
$endgroup$
– fgauth
2 hours ago
add a comment |
$begingroup$
I have been told:
Bankruptcy is so very controversial.
You might track companies ratios (e.g., debt to equity ratio
, EPS
, net income
, etc.). For instance, GE looks almost bankrupt. But, its not and there is a very low probability that GE would file for any bankruptcy chapter, I'm just guessing.
There are many companies, especially in OTC markets, that many investors consider them "bankrupt", but "they are not" and their equities are being traded, e.g. OTCMKTS: HMNY
. Usually, theses companies are destined to takeover
, involuntary M&As
, and so.
Also, there are types of bankruptcies that you might take into account, not to mention the complexity of U.S. bankruptcy courts. Majority of good companies are incorporated in Delaware, which has a fairly advanced court to protect shareholders (e.g., Delaware Court of Chancery).
Pharmaceutical sector might be good to look into. You can use stock screener
tools to filter and find companies that are in serious financial situations. In fact, many small-account retail traders love to trade their equities since they are usually oversold
.
My favorites screeners
are:
Finviz
TradingView
Also, you can collect data from so many analyst websites. Such as:
Zacks.com
Barrons
Seeking Alpha
Thomson
GE on Finviz
New contributor
$endgroup$
1
$begingroup$
Can we discuss privately? Where have you got the photo from your answer?
$endgroup$
– fgauth
2 hours ago
add a comment |
$begingroup$
I have been told:
Bankruptcy is so very controversial.
You might track companies ratios (e.g., debt to equity ratio
, EPS
, net income
, etc.). For instance, GE looks almost bankrupt. But, its not and there is a very low probability that GE would file for any bankruptcy chapter, I'm just guessing.
There are many companies, especially in OTC markets, that many investors consider them "bankrupt", but "they are not" and their equities are being traded, e.g. OTCMKTS: HMNY
. Usually, theses companies are destined to takeover
, involuntary M&As
, and so.
Also, there are types of bankruptcies that you might take into account, not to mention the complexity of U.S. bankruptcy courts. Majority of good companies are incorporated in Delaware, which has a fairly advanced court to protect shareholders (e.g., Delaware Court of Chancery).
Pharmaceutical sector might be good to look into. You can use stock screener
tools to filter and find companies that are in serious financial situations. In fact, many small-account retail traders love to trade their equities since they are usually oversold
.
My favorites screeners
are:
Finviz
TradingView
Also, you can collect data from so many analyst websites. Such as:
Zacks.com
Barrons
Seeking Alpha
Thomson
GE on Finviz
New contributor
$endgroup$
I have been told:
Bankruptcy is so very controversial.
You might track companies ratios (e.g., debt to equity ratio
, EPS
, net income
, etc.). For instance, GE looks almost bankrupt. But, its not and there is a very low probability that GE would file for any bankruptcy chapter, I'm just guessing.
There are many companies, especially in OTC markets, that many investors consider them "bankrupt", but "they are not" and their equities are being traded, e.g. OTCMKTS: HMNY
. Usually, theses companies are destined to takeover
, involuntary M&As
, and so.
Also, there are types of bankruptcies that you might take into account, not to mention the complexity of U.S. bankruptcy courts. Majority of good companies are incorporated in Delaware, which has a fairly advanced court to protect shareholders (e.g., Delaware Court of Chancery).
Pharmaceutical sector might be good to look into. You can use stock screener
tools to filter and find companies that are in serious financial situations. In fact, many small-account retail traders love to trade their equities since they are usually oversold
.
My favorites screeners
are:
Finviz
TradingView
Also, you can collect data from so many analyst websites. Such as:
Zacks.com
Barrons
Seeking Alpha
Thomson
GE on Finviz
New contributor
edited 1 hour ago
New contributor
answered 3 hours ago
EmmaEmma
1908
1908
New contributor
New contributor
1
$begingroup$
Can we discuss privately? Where have you got the photo from your answer?
$endgroup$
– fgauth
2 hours ago
add a comment |
1
$begingroup$
Can we discuss privately? Where have you got the photo from your answer?
$endgroup$
– fgauth
2 hours ago
1
1
$begingroup$
Can we discuss privately? Where have you got the photo from your answer?
$endgroup$
– fgauth
2 hours ago
$begingroup$
Can we discuss privately? Where have you got the photo from your answer?
$endgroup$
– fgauth
2 hours ago
add a comment |
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1
$begingroup$
en.wikipedia.org/wiki/Ohlson_o-score
$endgroup$
– Alex C
3 hours ago
1
$begingroup$
Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf:
www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
$endgroup$
– Emma
3 hours ago