Beware: Inflated Financial Statements

Hey Guys,


I am tired of companies that have things to hide.


Higher earnings reported isn't always good. Companies can have higher earnings this year. When in reality, they actually lost money from the previous year. Yes, this happens all the time. The most common way this happens is by "One Time Effects". Such as, when a company adds money to their bottom line, from a sale of an asset. An asset can be almost anything the company owns (Buildings, Plant Equipment, etc. etc.)


There are other legal ways that companies can manipulate there financial statements. To provide for better earnings. Many professionals can uncover the hidden factors. This could be one reason why stocks report higher earnings. Then they continue to plummet afterwards.


There are so many ways that companies can manipulate financial statements its sickening. The average investor doesn't understand this. This is why I am recommending you go out and buy a college textbook/book about "financial statements".


Below, are some textbooks/books you can purchase at Amazon:





Also, I never use "money" sites to look up companies financial statements. Such as, Yahoo, Msn, etc. I only use these sites to look up stock prices and charts. These sites will hide financial figures sometimes. Not on purpose, but information is sometimes only stated in the original filings by the company. These orginal filings are at (www.sec.gov).


Happy Trading