These “Over-Earners” Have Suspicious Earnings

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Rupert Hargreaves
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Suspicious Earnings by Eric Fernandez, head of Two Rivers Analytics, Inc. Could profitability drop away on your favorite long position? Could you identify these companies as good shorts? Our screen identifies companies that are suspicious “over-earners”. Suspicious Earnings Broadly speaking, there are two approaches to short idea generation: thematic or quantitative / screening approaches. We at Two Rivers are big advocates of getting the process right in our investing. We favor the discipline and repeatability of screening. Screening for shorts seeks to identify the most flawed companies by searching for outlier statistics such as, say, the least profitable, over-levered or worst…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk