Zalemark Holding Co Inc (ZMRK)

[fact-checker]

Telltale signs of an impending bankruptcy. Part 2.

All of these signs point to a Zalemark bankruptcy.

From a USA Today article by financial writer Matt Krantz.

•Rapidly decelerating earnings growth. Typically, the companies that face the risk of bankruptcy are the ones that see their business rapidly evaporate. This can be due to a variety of reasons, but the first tell-tale sign is clear: decreasing earnings growth. Companies will try to hide the fact their earnings growth is slowing, usually by bragging about posting "record" earnings. But when you see the slowdown, that's you're first tip off of trouble. Typically, you'll also see the stock start to sell off, another warning.

•Rise of losses. It's one thing for a company to mature, and settle on a slower rate of growth. But it's quite another when you see a slowdown worsen into actual net losses. Look at the bottom line in the income statement, for net loss. When you see a net loss, you should be ready to sell your stake of a company, unless you have a good reason to think it's temporary.

Again, companies will try to hide their losses, often talking about "pro forma" or "adjusted earnings" that strip out costs. Some companies might also focus on revenue. Investors are usually not fooled, and push the stock even lower.