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Zoo Digital passes   / 3 of the Beneish M-Score Screen Strategy.
History This is a short-selling strategy based on Professor Beneish's M-Score - this is a mathematical model that uses eight financial ratios from the company's financial statements to assess the degree to which the earnings may have been manipulated. It is similar to the Altman Z-Score, but it is focused on detecting earnings manipulation rather than bankruptcy. The research suggests that a score greater than -1.78 indicates a strong likelihood of a firm being a manipulator. Here is the link to the original Detection of Earnings Manipulation paper as well as the subsequent paper - The Relation between Accruals and Earnings Manipulation. The screen below highlights companies that have had a M-score above the threshold for two years in a row in order to reduce the likelihood that a given year's result is coincidental or a rogue data input error. more »

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Beneish M Score, Last Yr > -1.78
Beneish M Score 1y Ago > -1.78
Sector not in F inancials,
Qualifies in the top 200 stocks sorted by P/B descending

Click Here to view all the stocks qualifying under this Strategy.

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