As an investor, it's essential to sort out the good companies from the bad, and the clues you'll need are in the financials. Join author Tom Jacobs as he raises the red flags of financial chicanery. Avoid and even profit from companies committing scandalous accounting.
Check out the rest of the videos in this series:
What's Behind the Numbers: Learn Red Flags, Avoid Blowups
Red Flag 1: Too Much Inventory, Writedown Ahead?
Red Flag 3: Serial Acquisitions: Apples to Oranges
Slay Your Fear of Shorting: Use Put Options to Know Your Risk
Red Flag 4: Collecting the Revenue: Too Many Days' Sales Outstanding?
All Red Flags Waving!
With so much of the financial industry getting bad press these days, it may be a "be greedy when others are fearful" moment. Not surprisingly, some of Warren Buffett's biggest investments are in the space. In the Motley Fool's free report, "The Stocks Only the Smartest Investors Are Buying," you can learn about a small, under-the-radar bank that's too tiny for Buffett's billions. Too bad, because it has better operating metrics than his favorites. Just click here to keep reading.
The article Red Flag 2: Are Stock Options Making the Cash Flow Fake? originally appeared on Fool.com.
Richard Engdahl has no position in any stocks mentioned. Tom Jacobs has no position in any stocks mentioned. The Motley Fool recommends salesforce.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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