Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

Black Swan Stocks Could Make Your Portfolio A Turkey

Wednesday, December 5, 2012 - 12:27 PM
A day before Hewlett-Packard (HPQ) announced an astonishing $8.8 billion writedown associated with its acquisition of Autonomy, the governance analysts at GMI Ratings released their first “Black Swan Risk List.” Right there on the roster of companies that GMI believed to offer a disproportionate risk of something going very wrong in the near future – a so-called Black Swan event – was Hewlett-Packard’s name.

GMI has since produced a second list of 40 companies with a market capitalization north of $5 billion that it believes have extraordinarily aggressive accounting practices. “Inclusion in this list,” said GMI CEO James A. Kaplan, “signifies an elevated risk of adverse events that can materially affect share prices.” Translated, that means these are companies that investors should run away from screaming as loudly as the victims in horror movies.
ShorebreakShorebreak2,670 posts since
Apr 6, 2010
Rep Points: 14,473