In yesterday’s post, I inserted a link to a CNBC interview with Nouriel Roubini and Nassim Nicholas Taleb. Today, there is an interesting article over at the FOREX website, titled Learn How to Spot a Disater. It discusses where to look to determine whether a company might be experiencing a financial disaster - its a great list including cash flow, debt level, price declines, resignations and others. If you’re interested in this stuff, its worth the read.
On a related note, I believe there is a bigger story at play here. The marketplace along with the investor is becoming much more diligent and vocal relative to the financial stress the economy is in. Individuals that were respected for their investing strategies of a year ago have lost favor, after all, almost anyone can look good during an extended bull market. Now a new era of global thinkers are emerging, and this group doesn’t have the cozy relationship with the investment community, and they’ll be more willing to cry wolf, Without Warning. It will be interesting to watch the changing of the guard on Wall Street and how this impacts future earning potential at the major investment houses.
