Analysis Cheat Sheet

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Financial Health

Pattern
Potential Implications

Frequent dilutive shares

• Cash flow problems • Poor operational efficiency • Weak business model • High cash burn rate

Rising accounts receivable vs revenue

• Channel stuffing • Customer payment issues • Aggressive revenue recognition • Weakening market position

Declining gross margins

• Pricing pressure • Cost control issues • Market competition • Raw material problems

Working capital deterioration

• Operational inefficiency • Supply chain issues • Market slowdown • Cash management problems

Increasing commodity hedging

• Supply cost concern • Price volatility preparation • Margin protection strategy • Market uncertainty

Management Behavior

Pattern
Potential Implications

Insider selling during growth

• Management lacks confidence • Peak performance concerns • Upcoming challenges • Better opportunities elsewhere

Frequent executive turnover

• Internal problems • Strategy disagreements • Poor execution • Culture issues

Related party transactions

• Governance issues • Conflict of interest • Poor oversight • Hidden liabilities

Changing auditors

• Accounting disagreements • Attempting to hide issues • Cost cutting • Relationship problems

Delayed filings

• Internal control issues • Accounting problems • Management disorganization • Potential restatements

Sudden board nationality changes

• Regulatory compliance preparation • Political alignment shift • Market access strategy • Government relationship building

Market Position

Pattern
Potential Implications

Declining market share

• Product competitiveness issues • Market disruption • Poor execution • Customer satisfaction problems

Price reductions

• Market saturation • Competitive pressure • Product lifecycle decline • Cost advantages lost

Customer concentration

• Business risk • Limited market penetration • Strong product fit • Weak sales diversity

Expanding into new markets

• Core market saturation • Seeking growth • Strategic pivot • Risk diversification

Regional market exit

• Political risk mitigation • Regulatory pressure • Asset protection strategy • Market access issues

Technical Development

Pattern
Potential Implications

High R&D spending vs revenue

• Innovation pressure • Technical debt • Competitive catch-up needed • Product maturity issues

Patent portfolio shrinking

• Innovation slowdown • R&D effectiveness issues • Strategic shift • Cost cutting

Frequent technical delays

• Development problems • Resource constraints • Poor project management • Technical complexity

Outsourcing core development

• Cost pressure • Talent shortage • Strategic shift • Loss of core competency

Technology localization

• Market access requirement • Data sovereignty preparation • Political compliance • Supply chain independence

Operational Patterns

Pattern
Potential Implications

Rising inventory levels

• Demand problems • Production inefficiency • Market slowdown • Poor forecasting

Supplier concentration

• Supply chain risk • Limited alternatives • Strategic partnership • Cost optimization

Increasing operating costs

• Scale issues • Inefficient processes • Market pressure • Poor cost control

Geographic concentration

• Market dependency • Limited expansion • Strong regional position • Political/economic risk

Supply chain regionalization

• Trade restriction preparation • Political risk mitigation • Cost versus risk balancing • Market access strategy

Risk Indicators

Pattern

Regulatory investigations

• Compliance issues • Governance problems • Industry scrutiny • Reputation risk

Increasing debt levels

• Cash flow problems • Growth funding • Acquisition plans • Working capital needs

Frequent litigation

• Product issues • IP problems • Customer dissatisfaction • Industry tensions

Environmental violations

• Poor controls • Cost cutting • Management priorities • Regulatory risk

Cross-border asset movement

• Capital control concerns • Political risk mitigation • Tax strategy changes • Asset protection measures

Growth Patterns

Pattern
Potential Implications

Declining growth rate

• Market saturation • Competition • Product lifecycle • Execution problems

Acquisition spree

• Organic growth issues • Market consolidation • Strategic expansion • Management empire building

New market entries

• Core market issues • Strategic expansion • Risk diversification • Revenue pressure

Product line expansion

• Market opportunity • Core product issues • Strategic growth • Resource strain

Strategic market avoidance

• Political risk assessment • Regulatory concern • Market access uncertainty • Government relationship issues

Geopolitical Risk Patterns

Pattern
Potential Implications

Military build-ups at borders

• Potential conflict preparation • Regional destabilization • Supply chain disruption risk • Market access threats

Specialized military equipment production

• Specific operation planning • Strategic target indicators • Regional conflict risk • Military modernization

Changes in strategic resource stockpiling

• Supply disruption preparation • Trade restriction anticipation • Political tension indicators • Economic warfare preparation

Diplomatic mission changes

• Deteriorating relations • Conflict preparation • Asset protection measures • Information gathering concerns

Infrastructure hardening

• Military preparation • Civil defense planning • Strategic asset protection • Conflict anticipation

Economic policy shifts

• Sanctions preparation • Trade war positioning • Economic decoupling • Strategic autonomy pursuit

Strategic industry nationalization

• Resource control preparation • Economic warfare positioning • Supply chain disruption • Market access restriction

Port/transportation infrastructure development

• Military logistics preparation • Trade route control • Force projection capability • Strategic positioning

Unusual commodity purchases

• Resource hoarding • Supply disruption preparation • Economic pressure tactics • Strategic reserve building

Strategic technology acquisition

• Military capability building • Industrial capability enhancement • Sanctions evasion preparation • Strategic independence pursuit

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