How to assess the susceptibility of a U.S. company to go bankrupt?












2












$begingroup$


Suppose a NASDAQ equity XYZ.



Question :




  • How can we assess the susceptibility of a company to go bankrupt? Are there good criteria that we can trust? What about the Buffett indicator?


  • How to evaluate the viability of a company on the stock market?







nasdaq







share|improve this question











$endgroup$








  • 1




    $begingroup$
    en.wikipedia.org/wiki/Ohlson_o-score
    $endgroup$
    – Alex C
    4 hours ago






  • 1




    $begingroup$
    Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf: www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
    $endgroup$
    – Emma
    4 hours ago
















2












$begingroup$


Suppose a NASDAQ equity XYZ.



Question :




  • How can we assess the susceptibility of a company to go bankrupt? Are there good criteria that we can trust? What about the Buffett indicator?


  • How to evaluate the viability of a company on the stock market?







nasdaq







share|improve this question











$endgroup$








  • 1




    $begingroup$
    en.wikipedia.org/wiki/Ohlson_o-score
    $endgroup$
    – Alex C
    4 hours ago






  • 1




    $begingroup$
    Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf: www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
    $endgroup$
    – Emma
    4 hours ago














2












2








2


1



$begingroup$


Suppose a NASDAQ equity XYZ.



Question :




  • How can we assess the susceptibility of a company to go bankrupt? Are there good criteria that we can trust? What about the Buffett indicator?


  • How to evaluate the viability of a company on the stock market?







nasdaq







share|improve this question











$endgroup$




Suppose a NASDAQ equity XYZ.



Question :




  • How can we assess the susceptibility of a company to go bankrupt? Are there good criteria that we can trust? What about the Buffett indicator?


  • How to evaluate the viability of a company on the stock market?







nasdaq




nasdaq






share|improve this question















share|improve this question













share|improve this question




share|improve this question








edited 3 hours ago









Emma

1948




1948










asked 4 hours ago









fgauthfgauth

406




406








  • 1




    $begingroup$
    en.wikipedia.org/wiki/Ohlson_o-score
    $endgroup$
    – Alex C
    4 hours ago






  • 1




    $begingroup$
    Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf: www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
    $endgroup$
    – Emma
    4 hours ago














  • 1




    $begingroup$
    en.wikipedia.org/wiki/Ohlson_o-score
    $endgroup$
    – Alex C
    4 hours ago






  • 1




    $begingroup$
    Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf: www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
    $endgroup$
    – Emma
    4 hours ago








1




1




$begingroup$
en.wikipedia.org/wiki/Ohlson_o-score
$endgroup$
– Alex C
4 hours ago




$begingroup$
en.wikipedia.org/wiki/Ohlson_o-score
$endgroup$
– Alex C
4 hours ago




1




1




$begingroup$
Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf: www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
$endgroup$
– Emma
4 hours ago




$begingroup$
Forecasting Bankruptcy More Accurately: A Simple Hazard Model: pdf: www-personal.umich.edu/~shumway/papers.dir/forcbank.pdf
$endgroup$
– Emma
4 hours ago










2 Answers
2






active

oldest

votes


















4












$begingroup$

Since the stock is listed on NASDAQ, you have access to fairly standard 10Q and 10K financial statements. So you can apply the analysis pioneered by Ed Altman in his Z-score paper - compare this company's fundamental ratios with those of other companies, and see how many of them went bankrupt historically. For example, Moody's KMV uses this approach to estimate "EDF" (expected default frequency) for many corporate credits.






share|improve this answer









$endgroup$





















    2












    $begingroup$

    I have been told:



    Bankruptcy is so very controversial.



    You might track companies ratios (e.g., debt to equity ratio, EPS, net income, etc.). For instance, GE looks almost bankrupt. But, its not and there is a very low probability that GE would file for any bankruptcy chapter, I'm just guessing.



    There are many companies, especially in OTC markets, that many investors consider them "bankrupt", but "they are not" and their equities are being traded, e.g. OTCMKTS: HMNY. Usually, theses companies are destined to takeover, involuntary M&As, and so.



    Also, there are types of bankruptcies that you might take into account, not to mention the complexity of U.S. bankruptcy courts. Majority of good companies are incorporated in Delaware, which has a fairly advanced court to protect shareholders (e.g., Delaware Court of Chancery).



    Pharmaceutical sector might be good to look into. You can use stock screener tools to filter and find companies that are in serious financial situations. In fact, many small-account retail traders love to trade their equities since they are usually oversold.




    My favorites screeners are:



    Finviz



    TradingView



    Also, you can collect data from so many analyst websites. Such as:



    Zacks.com



    Barrons



    Seeking Alpha



    Thomson



    GE Finviz



    GE on Finviz






    share|improve this answer










    New contributor




    Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
    Check out our Code of Conduct.






    $endgroup$









    • 1




      $begingroup$
      Can we discuss privately? Where have you got the photo from your answer?
      $endgroup$
      – fgauth
      3 hours ago













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    2 Answers
    2






    active

    oldest

    votes








    2 Answers
    2






    active

    oldest

    votes









    active

    oldest

    votes






    active

    oldest

    votes









    4












    $begingroup$

    Since the stock is listed on NASDAQ, you have access to fairly standard 10Q and 10K financial statements. So you can apply the analysis pioneered by Ed Altman in his Z-score paper - compare this company's fundamental ratios with those of other companies, and see how many of them went bankrupt historically. For example, Moody's KMV uses this approach to estimate "EDF" (expected default frequency) for many corporate credits.






    share|improve this answer









    $endgroup$


















      4












      $begingroup$

      Since the stock is listed on NASDAQ, you have access to fairly standard 10Q and 10K financial statements. So you can apply the analysis pioneered by Ed Altman in his Z-score paper - compare this company's fundamental ratios with those of other companies, and see how many of them went bankrupt historically. For example, Moody's KMV uses this approach to estimate "EDF" (expected default frequency) for many corporate credits.






      share|improve this answer









      $endgroup$
















        4












        4








        4





        $begingroup$

        Since the stock is listed on NASDAQ, you have access to fairly standard 10Q and 10K financial statements. So you can apply the analysis pioneered by Ed Altman in his Z-score paper - compare this company's fundamental ratios with those of other companies, and see how many of them went bankrupt historically. For example, Moody's KMV uses this approach to estimate "EDF" (expected default frequency) for many corporate credits.






        share|improve this answer









        $endgroup$



        Since the stock is listed on NASDAQ, you have access to fairly standard 10Q and 10K financial statements. So you can apply the analysis pioneered by Ed Altman in his Z-score paper - compare this company's fundamental ratios with those of other companies, and see how many of them went bankrupt historically. For example, Moody's KMV uses this approach to estimate "EDF" (expected default frequency) for many corporate credits.







        share|improve this answer












        share|improve this answer



        share|improve this answer










        answered 3 hours ago









        Dimitri VulisDimitri Vulis

        1858




        1858























            2












            $begingroup$

            I have been told:



            Bankruptcy is so very controversial.



            You might track companies ratios (e.g., debt to equity ratio, EPS, net income, etc.). For instance, GE looks almost bankrupt. But, its not and there is a very low probability that GE would file for any bankruptcy chapter, I'm just guessing.



            There are many companies, especially in OTC markets, that many investors consider them "bankrupt", but "they are not" and their equities are being traded, e.g. OTCMKTS: HMNY. Usually, theses companies are destined to takeover, involuntary M&As, and so.



            Also, there are types of bankruptcies that you might take into account, not to mention the complexity of U.S. bankruptcy courts. Majority of good companies are incorporated in Delaware, which has a fairly advanced court to protect shareholders (e.g., Delaware Court of Chancery).



            Pharmaceutical sector might be good to look into. You can use stock screener tools to filter and find companies that are in serious financial situations. In fact, many small-account retail traders love to trade their equities since they are usually oversold.




            My favorites screeners are:



            Finviz



            TradingView



            Also, you can collect data from so many analyst websites. Such as:



            Zacks.com



            Barrons



            Seeking Alpha



            Thomson



            GE Finviz



            GE on Finviz






            share|improve this answer










            New contributor




            Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.






            $endgroup$









            • 1




              $begingroup$
              Can we discuss privately? Where have you got the photo from your answer?
              $endgroup$
              – fgauth
              3 hours ago


















            2












            $begingroup$

            I have been told:



            Bankruptcy is so very controversial.



            You might track companies ratios (e.g., debt to equity ratio, EPS, net income, etc.). For instance, GE looks almost bankrupt. But, its not and there is a very low probability that GE would file for any bankruptcy chapter, I'm just guessing.



            There are many companies, especially in OTC markets, that many investors consider them "bankrupt", but "they are not" and their equities are being traded, e.g. OTCMKTS: HMNY. Usually, theses companies are destined to takeover, involuntary M&As, and so.



            Also, there are types of bankruptcies that you might take into account, not to mention the complexity of U.S. bankruptcy courts. Majority of good companies are incorporated in Delaware, which has a fairly advanced court to protect shareholders (e.g., Delaware Court of Chancery).



            Pharmaceutical sector might be good to look into. You can use stock screener tools to filter and find companies that are in serious financial situations. In fact, many small-account retail traders love to trade their equities since they are usually oversold.




            My favorites screeners are:



            Finviz



            TradingView



            Also, you can collect data from so many analyst websites. Such as:



            Zacks.com



            Barrons



            Seeking Alpha



            Thomson



            GE Finviz



            GE on Finviz






            share|improve this answer










            New contributor




            Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.






            $endgroup$









            • 1




              $begingroup$
              Can we discuss privately? Where have you got the photo from your answer?
              $endgroup$
              – fgauth
              3 hours ago
















            2












            2








            2





            $begingroup$

            I have been told:



            Bankruptcy is so very controversial.



            You might track companies ratios (e.g., debt to equity ratio, EPS, net income, etc.). For instance, GE looks almost bankrupt. But, its not and there is a very low probability that GE would file for any bankruptcy chapter, I'm just guessing.



            There are many companies, especially in OTC markets, that many investors consider them "bankrupt", but "they are not" and their equities are being traded, e.g. OTCMKTS: HMNY. Usually, theses companies are destined to takeover, involuntary M&As, and so.



            Also, there are types of bankruptcies that you might take into account, not to mention the complexity of U.S. bankruptcy courts. Majority of good companies are incorporated in Delaware, which has a fairly advanced court to protect shareholders (e.g., Delaware Court of Chancery).



            Pharmaceutical sector might be good to look into. You can use stock screener tools to filter and find companies that are in serious financial situations. In fact, many small-account retail traders love to trade their equities since they are usually oversold.




            My favorites screeners are:



            Finviz



            TradingView



            Also, you can collect data from so many analyst websites. Such as:



            Zacks.com



            Barrons



            Seeking Alpha



            Thomson



            GE Finviz



            GE on Finviz






            share|improve this answer










            New contributor




            Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.






            $endgroup$



            I have been told:



            Bankruptcy is so very controversial.



            You might track companies ratios (e.g., debt to equity ratio, EPS, net income, etc.). For instance, GE looks almost bankrupt. But, its not and there is a very low probability that GE would file for any bankruptcy chapter, I'm just guessing.



            There are many companies, especially in OTC markets, that many investors consider them "bankrupt", but "they are not" and their equities are being traded, e.g. OTCMKTS: HMNY. Usually, theses companies are destined to takeover, involuntary M&As, and so.



            Also, there are types of bankruptcies that you might take into account, not to mention the complexity of U.S. bankruptcy courts. Majority of good companies are incorporated in Delaware, which has a fairly advanced court to protect shareholders (e.g., Delaware Court of Chancery).



            Pharmaceutical sector might be good to look into. You can use stock screener tools to filter and find companies that are in serious financial situations. In fact, many small-account retail traders love to trade their equities since they are usually oversold.




            My favorites screeners are:



            Finviz



            TradingView



            Also, you can collect data from so many analyst websites. Such as:



            Zacks.com



            Barrons



            Seeking Alpha



            Thomson



            GE Finviz



            GE on Finviz







            share|improve this answer










            New contributor




            Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.









            share|improve this answer



            share|improve this answer








            edited 2 hours ago





















            New contributor




            Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.









            answered 3 hours ago









            EmmaEmma

            1948




            1948




            New contributor




            Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.





            New contributor





            Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.






            Emma is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
            Check out our Code of Conduct.








            • 1




              $begingroup$
              Can we discuss privately? Where have you got the photo from your answer?
              $endgroup$
              – fgauth
              3 hours ago
















            • 1




              $begingroup$
              Can we discuss privately? Where have you got the photo from your answer?
              $endgroup$
              – fgauth
              3 hours ago










            1




            1




            $begingroup$
            Can we discuss privately? Where have you got the photo from your answer?
            $endgroup$
            – fgauth
            3 hours ago






            $begingroup$
            Can we discuss privately? Where have you got the photo from your answer?
            $endgroup$
            – fgauth
            3 hours ago




















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