Short Candidates with Developing Liquidity Problems, July 19, 2016

When a company is having liquidity problems, the first tactic is to extend payables and shorten receivables. Studies on bankruptcies have shown this to be common occurrences. We look for troubled companies by focusing on changes in working capital and adjust for cash and debt to get a cleaner view on operational management. This screen identifies companies with a negative accrual of more than 20% in both of the most recent two quarters, and also have high valuations. These companies are worth scrutinizing if in portfolio, and may be short candidates.
TickerAccrualLTM
Operating
Cash Flow
LTM
Net
Income
Total
Assets
LTM
PE
Market Cap
($mil)
ANG-60.10%1139-857284255.58,536.30
BKS-1940.00%114-24.42012.8252.4931.40
ATHN-125.60%159.2221085.3251.15,420.70
JOE-85.60%25.88.67979175.41,355.10
TCP-35.50%299253238144.13,722.90
CDR-101.80%59.420.31319.9123.7676.8
CPN-274.00%9064718659118.25367.4
CSC-40.60%8022517736113.56772.2
VC-100.10%10722532368108.32,302.40
DEI-179.90%288.355.17291.4100.25,378.60
DLR-108.60%839.7238.11142297.215,549.70
STL-71.60%11657.5646.311280287.955775.1
MPEL-551.00%-84.9997680.56,768.60
CTS-166.00%38.58.53540.375.3631.30
ACC-98.40%247.991.46367.566.36,730.90
HIW-268.00%304510.6451465.55,199.70
CXP-38.60%221.445.74634.862.92,839.70
IRM-20.50%617.4144.96422.357.810,429.90
EQY-136.80%171.978.53371.553.64,519.90
FNGN-34.60%54.727755.753.31,684.00
GE-20.80%14400763846219352.9302,629.20
DO-240.00%817.268.86944.650.53,466.30
DDK-168.40%81.331.131945.81,279.50
GRA-203.00%337.188.82888.444.75,325.90
ELS-53.70%-166.53485.643.96,852.50
BFS-145.10%9745.21301.6431398.1
VNO-66.30%754.3562.620873.44318999.8
PPL-5240.00%734.1299.210370.141.911,709.70
DPM-54.80%650107535438.14,079.10
TYC-44.10%5764441161137.918360.2
MCHP-35.00%744.5324.15567.536.311,620.00
MRK-663.00%1229546149875536.2163,368.90
BXP-104.60%946.9593.719175.83620,972.60
ASH-92.20%192228990134.47,513.70
JMEI-32.40%23.318.9768.834.4637.90
LLL-45.70%1044-1181191134.411,467.50
LFUS-323.00%152.181.81403.133.42693.6
NTAP-107.50%9742291003733.27,156.00
SE-59.10%688465764033.215,234.40
UHT-105.60%3924.4471.132.4790.10
STH-136.70%9557131255232.422,901.40
GGP-175.70%1079.7931.623566.332.127,432.10
MAT-26.90%698.4354.65968.931.511108.7
MKC-100.60%616.84344644.331.113,280.40
DISH-51.30%2447.7784.922009.430.924,316.80
NYT-961.00%143.669.2231230.52,069.50
STAY-88.40%409108.54432.829.13,138.50
PRA-436.00%132.1097.74894.528.62,728.40
AWR-470.00%84.358.51368.927.61,581.70
NJR-262.00%176.2118.73419.627.23,229.50
RPAI-568.00%247.9159.44687.827.24,056.80
GT-143.70%15682671677727.17052.8
CME-1.4231616.11284.468768.226.734372.3
MORE-1.058105.966.33240.426.71759.2
OGE-0.319799.2253.39523.325.36414.4
VRTS-18.8-22328.1781.325.3669.3

Short Candidates with Developing Liquidity Problems, June 20, 2016

When a company is having liquidity problems, the first tactic is to extend payables and shorten receivables. Studies on bankruptcies have shown this to be common occurrences. We look for troubled companies by focusing on changes in working capital and adjust for cash and debt to get a cleaner view on operational management. This screen identifies companies with a negative accrual of more than 20% in both of the most recent two quarters, and also have high valuations. These companies are worth scrutinizing if in portfolio, and may be short candidates.
TickerAccrualLTM
Operating
Cash Flow
LTM
Net
Income
Total
Assets
LTM
PE
Market Cap
($mil)
ATHN-125.60%159.2221085.32345,050.80
ANG-60.10%1139-857284207.16,488.60
JOE-85.60%25.88.67979164.51,270.40
TCP-35.50%299253238139.63,606.40
CSC-40.60%8022517736117.46,967.70
VC-100.10%10722532368117.32495.3
CPN-274.00%9064718659112.65112.5
CDR-101.80%59.4020.301319.9111.8611.90
DLR-108.60%839.7238.11142293.714,991.80
DEI-179.90%288.355.17291.493.65,025.30
MPEL-551.00%-84.9997690.67,620.70
CTS-166.00%38.58.53540.369.2579.80
ACC-98.40%247.9091.46367.562.46,332.90
HIW-268.00%304.00510.6451460.34,793.50
CXP-38.60%221.445.74634.859.22,671.80
IRM-20.50%617.40144.96422.355.710,046.40
FNGN-34.60%54.727755.7521,643.10
EQY-136.80%171.9078.53371.550.54,257.00
DO-240.00%817.268.86944.649.53,394.90
GE-20.80%14400763846219349.2281,387.20
KKD-168.40%81.331.131945.71,277.80
GRA-203.00%337.188.82888.444.65,316.00
PPL-5240.00%734.1299.210370.142.311,875.70
VNO-66.30%754.3562.620873.441.818,488.20
TYC-44.10%576444.001161137.718,292.10
BFS-145.10%9745.21301.637.71224.9
EROS-32.10%180.421.41228.236.5725.40
DPM-54.80%650107535435.63,812.90
MON-624.00%297914561941335.247,769.00
JMEI-32.40%23.318.9768.834.6640.80
MCHP-35.00%744.5324.15567.534.411,000.90
MRK-663.00%1229546149875534.3154,704.90
BXP-104.60%946.9593.719175.833.419,461.00
LLL-45.70%1044-1181191133.111,058.10
ASH-92.20%192228990132.67,107.20
LFUS-323.00%152.1081.81403.132.32,608.40
NTAP-107.50%9742291003732.37267.6
A-59.10%688465764032.114,765.70
DISH-51.30%2447.7784.922009.431.324,632.90
STJ-136.70%9557131255230.721,730.20
MAT-26.90%698.4354.65968.930.710,809.20
MCK-167.60%572424.54400.130.412,704.50
UHT-105.60%3924.4471.130.3739.80
GGP-175.70%1079.7931.623566.329.124,915.00
PRA-436.00%132.1097.74894.528.62,732.10
STAY-88.40%409108.54432.828.33,052.50
NYT-961.00%143.669.22312281,905.40
GT-143.70%1,568.00267.001677727.97,273.60
NJR-262.00%176.2118.73419.626.63,157.30
AWR-470.00%84.358.51368.926.11,492.50
MORE-105.80%105.966.33240.425.71,690.90
RPAI-568.00%247.9159.44687.825.63813
ISCA-1.251197.561.5223825.41545.6

Negative Accruals Week of May 4, 2016

When a company is having liquidity problems, the first tactic is to extend payables and shorten receivables. Studies on bankruptcies have shown this to be common occurrences. We look for troubled companies by focusing on changes in working capital and adjust for cash and debt to get a cleaner view on operational management. This screen identifies companies with a negative accrual of more than 20% in both of the most recent two quarters, and also have high valuations. These companies are worth scrutinizing if in portfolio, and may be short candidates.
TickerAccrualLTM
Operating
Cash Flow
LTM
Net
Income
Total
Assets
LTM
PE
Market Cap
($mil)
   
IRM-20.5%617.4144.9-53.39,586.8
G-22.6%327.4239.8-25.85,846.5
CHD-24.3%606.1410.4-30.512,011.7
MAT-26.9%698.4354.6-30.310,492.5
BERY-31.7%728.077.0-59.54,338.0
EROS-32.1%180.421.4-38.6741.8
JMEI-32.4%23.318.9-49.7913.5
LOW-33.6%4,784.0 2,546.0 -27.967,945.1
CXP-38.6%221.445.7-62.22,778.0
LFUS-41.8%165.882.5-32.52,650.7
ARG-43.3%715.9347.9-30.710,327.6
TYC-44.1%576.0444.0-33.616,079.6
LLL-45.7%1,044.0 (118.0)-30.810,311.7
DISH-51.3%2,447.7 784.9-28.922,022.9
EQY-55.4%-78.5-48.94,090.6
ANG-60.1%1,139.0 (85.0)-193.16,350.5
EQC-60.8%181.599.9-50.93,554.2
STL-71.6%11,657.5 646.3-83.353,633.9
DLR-75.8%-238.1-82.213,113.6
RYN-76.4%177.246.2-68.13,029.0
ECL-88.2%-999.5-34.433,354.2
STAY-88.4%409.0108.5-29.83,150.7
ASH-92.2%192.0228.0-32.16,951.4
ACC-99.2%-91.4-58.65,952.0
VC-100.1%107.02,253.0 -128.72,609.6
UHT-101.0%-24.4-30.7740.9
DM-104.8%243.573.0-32.02,455.2
EDE-112.5%184.856.6-26.11,470.5
GGP-115.4%-931.6-29.625,594.5
MCY-124.1%-71.6-40.72,894.2
ISCA-125.1%197.561.5-25.41,542.9
ATHN-125.6%159.222.0-241.35,031.6
AWR-128.1%95.160.50.026.71,528.3
SINA-128.2%328.125.70.0124.83,483.2
STJ-136.7%-713.00.030.721,541.7
GT-143.7%1,568.0 267.00.029.47,560.8
CTS-166.0%-8.50.077.2585.1
MKC-167.6%572.0424.50.028.711,884.5
GCP-185.7%151.840.10.040.01,569.3
VRNT-203.0%156.917.60.0123.12,070.5
GRA-203.0%337.188.80.046.55,415.6
HIW-268.0%304.0510.60.058.74,583.1
CPN-274.0%906.047.00.0121.25,389.0
DEI-287.0%-55.10.085.74,800.3
SNDK-378.0%1,093.0 427.80.037.015,285.1
TRIP-405.0%382.0198.00.047.79,591.3
RPAI-568.0%-159.40.025.93,903.2
MON-624.0%2,979.0 1,456.0 0.030.841,006.6
BFS-642.0%88.942.50.038.31,153.2
REG-1074.0%275.6150.10.055.27,568.4
ANDINA-B-1240.0%392.8127.30.025.53,070.2
CDR-1430.0%59.122.10.083.0601.5