Potential Shorts Based on High EPS Accruals, 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

Potential Shorts Based on High EPS Accruals, June 20, 2016

Net Income and Cash Flow should grow at a similar rate over time. When Net Income grows considerably faster than Cash From Operations, earnings may be managed, and/or it may be a sign that future earnings growth will slow considerably. We identify companies where Net Income growth is 30% greater than Cash Flow from Operations on an LTM basis, and also have high valuations. The companies in this list may be short candidates, stocks to avoid, or minimally require increased scrutiny to own.
LTMLTM - 4LTMLTM - 4Net IncCFODifference
TickerNet IncomeNet IncomeCFOCFOGrowthGrowthIn GrowthMarket CapPE
DRE593.4283.6403.44282.0923836390.9425233642.2199806588842.3270.5
ZOES1.830.66328.121.42.7601809951.3130841122.102059548744.1265.7
SVA2.49-3.111.31-11-0.800643087-0.1190909096.722957218337.5251.5
EQR4275.4734.712101335.15.8192459510.9062991546.42088865224053.7229.3
MDSO18.98.0682.684.82.3449131510.9740566042.4073684652572.9213.1
SUI154.730.1192.2129.65.1395348841.4830246913.4655760714695192.8
AAT38.125.2112.5110.11.5119047621.0217983651.4796507941849.4184
SPSC5.12.9218.316.31.7465753421.1226993871.555692791936.2178.8
CTRL9.224.464.998.522.0672645740.5856807513.52967819189.4168.8
LGND263.210.747.325.624.598130841.8476562513.313153272340.2162.2
TRNO22.98.0944.929.22.830655131.5376712331.8408714881083.9156.3
HIW510.6118.2304268.64.3197969541.131794493.8167679674793.5152.9
LOGM13.17.3283.889.81.7896174860.9331848551.917752391514.4147.9
ESS253.3159.5655.55641.5880877741.1622340431.36640961814266.4141.1
HR73.233.4166.9134.22.1916167661.243666171.7622227093532.2133.7
NTIC0.5683.10.1014.060.1832258060.0248768477.36531459650.8130.1
ENDP-1553.2-360.1103491.94.313246320.20939215320.598891893660.6128.7
FR87.146.51611411.873118281.1418439721.6404327793129.2126.4
CUBE8530.3234.2178.92.8052805281.3091112352.1428893535315115
AVAV10.73.8716.547.72.7648578810.345911957.992952784699.5108.2
XCRA11.530.30.05840.10.3795379540.001446384262.4046887329.2105.9
PDM164.153.2223.2189.63.0845864661.177215192.6202401162989.4105.8
CCI1446411.81773.61764.63.5114133071.0051003063.49359490431806.4100.9
OSTK13.17.6263.167.41.7191601050.936201781.836313646426.789.7
KRC365.2123.6295.2255.22.9546925571.1567398122.5543277125809.187.3
FCPT99.80.09837.90.9681018.36734739.1528925626.010015621201.286.6
MAA314.4194.4464.9392.21.6172839511.185364611.3643767817677.885.1
RWC1.021.690.2933.220.6035502960.0909937896.63287355972.983.3
EQY78.530.6171.9149.92.5653594771.146764512.237041219425782
ADBE799306.217841218.82.6094056171.4637348211.7827037934781079
SMED1.091.510.6622.440.7218543050.2713114752.66061103268.179
AHH49.618.444.827.72.6956521741.617328521.666731366609.978.9
ADTN20.338.321.2590.530026110.3593220341.47507266490676.9
ARE125.686.5337.6367.91.4520231210.9176406631.5823439177247.876.3
PAYC33.510.659.833.73.1603773581.7744807121.7810153342508.575.6
NXPI1235322137615633.8354037270.8803582854.35663955329122.972
EXPE598.5456.51416.21446.61.3110624320.9789852071.3392055615493.968.8
CRTO63.754.8115.11451.1624087590.7937931031.4643724592866.267.7
SKT203.893.9220.4200.72.1703940361.0981564521.9763978363569.766.4
MAYS2.11.334.754.31.5789473681.1046511631.429362881100.466
UE68.936.4139.9110.41.8928571431.2672101451.4937200042743.965
GRUB37.430.53375.51.2262295080.4370860932.8054644812547.564
LPT264.6177392.2352.81.4949152541.1116780051.344737638569262.4
VASC812.18.5218.40.6611570250.4630434781.427850852679.762.1
ACIW175.173.2172.3182.92.3920765030.9420448332.5392384932391.160.7
LWAY1.972.313.596.790.8528138530.5287187041.61298219145.860.2
OMCL24.130.644.275.40.7875816990.5862068971.3435217221171.359.4
MDXG26.611.213.622.62.3750.6017699123.946691176818.359.1
VMC279.8111.3527.1284.52.5139263251.8527240771.35688112215182.158.2
MKTX100.481.952.8109.81.2258852260.4808743172.5492840495213.255
MELI134.344171.4207.33.0522727270.8268210323.691576058590654.6
LIVN-44.465.8-13.979.9-0.674772036-0.1739674593.8787255912404.453.8
PEGA39.429.443.654.61.3401360540.7985347991.6782437752114.553.2
MNST706.2392.3214.6552.11.8001529440.38869774.63124156831670.650.2
CGNX181.5123.5142.5141.91.4696356281.004228331.4634476883576.548.9
ADC40.119.552.135.92.0564102561.4512534821.416989025102848.7
PSIX10.519.9-3.32-14.80.5276381910.2243243242.352122056185.846.7
HIS245.7201.6576.5662.31.218750.8704514571.4001355167807.345.6
BMY1574225382031570.6986240570.259740262.689702619117969.943.7
EPAM93.66780.495.61.3970149250.8410041841.66112723466.742.4
TPL35.249.72960.60.7082494970.4785478551.4799972251370.742.3
AMED38.2-9.82105.5-44.71607.439.7
INTU10333221493163826958.639.2
MDLZ749723453556385768352.838.2
NJR118.7145.5176.2299.93157.336.2
DLTH18.914.115.223.6793.735.1
BF.B106768452460819627.731.5

Net Inc Gr GT Week of May 4, 2016

2016-05-11
Net Income and Cash Flow should grow at a similar rate over time. When Net Income grows considerably faster than Cash From Operations, earnings may be managed, and/or it may be a sign that future earnings growth will slow considerably. We identify companies where Net Income growth is 30% greater than Cash Flow from Operations on an LTM basis, and also have high valuations. The companies in this list may be short candidates, stocks to avoid, or minimally require increased scrutiny to own.
LTMLTM - 4LTMLTM - 4Net IncCFODifference
TickerNet IncomeNet IncomeCFOCFOGrowthGrowthIn GrowthMarket CapPE
NasdaqGS:BZUN3.48-9.640.339-10.7-0.360995851-0.03168224311.39426431281.7293
NasdaqGM:LGND257.31241.720.621.441666672.02427184510.592286172490.7283.3
NasdaqCM:SAJA0.1420.1510.4551.190.9403973510.3823529412.45950076422.3233.1
NasdaqGS:CTRP386.239.1469.6315.89.8772378521.4870170996.64231625520335231.5
NasdaqGS:MDSO18.98.0682.684.82.3449131510.9740566042.4073684652431201.4
NYSE:TRNO22.98.0944.929.22.830655131.5376712331.840871488993.4197.2
NYSE:DRE593.4283.6403.44282.0923836390.9425233642.2199806587669.6185.8
NYSE:AAT38.125.2112.5110.11.5119047621.0217983651.4796507941863185.4
NYSE:SUI154.730.1192.2129.65.1395348841.4830246913.4655760714493.3185.3
NasdaqGS:SPSC5.12.9218.316.31.7465753421.1226993871.555692791877.1167.5
NasdaqGM:NTIC0.5683.10.1014.060.1832258060.0248768477.36531459663.5162.7
NasdaqGS:CONE-15.4-7.8140.2111.11.9743589741.2619261931.5645597863517.9162.3
AMEX:ORM23.67.935.882.972.9760403531.979797981.503204056175.5158.4
NasdaqGS:LOGM13.17.3283.889.81.7896174860.9331848551.917752391500.9146.5
NYSE:HIW510.6118.2304268.64.3197969541.131794493.8167679674583.1146.2
NYSE:HR6932160.4125.42.1755485891.2791068581.7008341223155.2124
NYSE:CUBE8530.3234.2178.92.8052805281.3091112352.1428893535442.9117.7
NYSE:PDM164.153.2223.2189.63.0845864661.177215192.6202401162927107.9
NasdaqGS:AVAV10.73.8716.547.72.7648578810.345911957.992952784652.9101
NYSE:CCI1446411.81773.61764.63.5114133071.0051003063.49359490429070.892.3
NYSE:KRC365.2123.6295.2255.22.9546925571.1567398122.5543277125973.589.8
NasdaqGM:OSTK13.17.6263.167.41.7191601050.936201781.836313646366.589
NYSE:MAA332.3148463.7385.42.245270271.2031655421.8661357827353.186.3
NasdaqGS:RGEN9.358.1715.118.41.1444308450.8206521741.39453824888582.1
NYSE:DANG14.114.20.17342.70.9929577460.004051522245.0826345582.679.8
NasdaqGS:ADTN20.338.321.2590.530026110.3593220341.475072664939.679.7
NasdaqGS:ADBE799306.217841218.82.6094056171.4637348211.78270379346849.677.5
NasdaqGS:EXPE598.5456.51416.21446.61.3110624320.9789852071.3392055617291.576.6
NasdaqGS:HIMX25.266.622.593.70.3783783780.2401280681.575735736173875.5
NasdaqGS:NXPI1235322137615633.8354037270.8803582854.35663955329277.172.4
NasdaqCM:MAYS2.071.134.523.541.8318584071.2768361581.434685567111.570.8
NYSE:PAYC33.510.659.833.73.1603773581.7744807121.7810153342261.869.1
NasdaqGS:CRTO63.745.4115.11211.40308370.9512396691.4750054542686.768.3
NasdaqCM:MDXG26.611.213.622.62.3750.6017699123.946691176758.658.5
NYSE:VMC279.8111.3527.1284.52.5139263251.8527240771.3568811221519758.3
LSE:LIVN-44.465.8-13.979.9-0.674772036-0.1739674593.8787255912579.957.8
NasdaqCM:PLPM10.43.1612.25.253.2911392412.3238095241.416268935207.857.4
NasdaqGS:ENDP-1495-721.363352.12.072646610.17892644111.583791616263.457.2
NasdaqGS:VASC812.18.5218.40.6611570250.4630434781.42785085261356
NasdaqGS:PEGA36.333.362.599.91.090090090.6256256261.74242036.755.7
NasdaqGS:OMCL24.130.644.275.40.7875816990.5862068971.3435217221138.555.1
NYSE:GRUB37.430.53375.51.2262295080.4370860932.805464481208652.7
NYSE:SHLX167.113.4282.716712.470149251.6928143717.3665190146046.749.8
NYSE:EPAM84.569.676.4104.91.214080460.7283126791.6669769663622.947.8
NasdaqGS:CGNX181.5123.5142.5141.91.4696356281.004228331.4634476883498.247.8
NYSE:IHS245.7201.6576.5662.31.218750.8704514571.4001355168167.347.7
NasdaqGS:MKTX100.481.952.8109.81.2258852260.4808743172.5492840494485.147.3
NasdaqGS:MNST706.2392.3214.6552.11.8001529440.38869774.63124156829709.247.1
NYSE:BMY1574225382031570.6986240570.259740262.689702619118737.844
NYSE:ADC40.119.552.135.92.0564102561.4512534821.416989025823.343.8
NasdaqGS:AMED38.2-9.82105.5-44.7-3.890020367-2.3601789711.6481887241732.742.5
NasdaqGS:ULTA320257.1375.9396.61.2446518860.9478063541.31319217413147.342.5
NasdaqGS:MDLZ74972345355638573.1970149250.9219600733.46762839367778.537.9
NYSE:VIPS244.8135.6295526.11.8053097350.5607298993.2195710217502.637.3
NasdaqGS:AVGO1390480231114272.8958333331.619481431.78812382855912.136.4
NYSE:NKE37793106325446661.2166773990.6973853411.744627149100274.636.3
NasdaqGS:CVGW28.27.164829.53.9385474861.6271186442.420565642993.634.5
NasdaqCM:POPE10.912.420.230.80.8790322580.6558441561.340306611294.332.9
NYSE:AAC11.27.556.198.041.4834437090.7699004981.92679926468.732.6
NasdaqGS:DLTH17.314.214.222.61.2183098590.6283185841.939000198713.532.1
NasdaqGS:EBIX79.563.648.758.51.250.8324786321.5015400411648.332.1