The Monitor is a customizable, web-based tool that alerts portfolio managers and analysts to the first signs of trouble at U.S. public companies of interest to them. The platform enables institutional professionals to research the issues and communicate with their colleagues about the warning signs The Monitor has identified.
The stock prices of companies on which earnings quality alerts were issued historically underperformed the Nasdaq Composite, Russell 3000 and Wilshire 5000 indexes on a market-cap-weighted basis over the one, two, three and six months after the alerts were issued.
The Monitor incorporates real-time information on more than 30 types of risks, including:
- Weak earnings quality
- Significant related-party transactions
- CFO changes
- Significant litigation developments
- Aggressive changes in accounting policies
- Auditor changes
- Unusual patterns of insider trading
- Restatements in, or late filings of, financial statements