SunWorks Inc (SUNWQ)

[SandridgeEnergy]

Altman-Z test says otherwise:

The only sure thing is NO bankruptcy in sight..

From a peer reviewed academic study on the efficacy of that method:

http://ecedweb.unomaha.edu/EBJI%202010HayesHodgeHughes.pdf

Conclusions
“Although many performance
indicators cannot be expected to incur a
strong cue that a strategy does not yield the
expected results, Altman’s Z is argued by
some to be broad enough of an indicator
for managers to notice” (Ferrier et al.,
2002). In other words, Altman’s Z may be
employed to indicate financial distress.
In this study, we have endeavored to
show the efficacy of the Altman’s Z” Score
in predicting financial distress in retail firms.
In eight comparisons, four each in 2007 and
2008, of bankrupt versus non-bankrupt
firms in retail specialties, the Z” Score
accurately predicted bankruptcy filing 94%
of the time and accurately predicted
financial distress over 90% of the time.

In its initial test, the Altman Z-Score was found to be 72% accurate in predicting bankruptcy two years before the event, with a Type II error (false negatives) of 6% (Altman, 1968). In a series of subsequent tests covering three periods over the next 31 years (up until 1999), the model was found to be approximately 80%–90% accurate in predicting bankruptcy one year before the event, with a Type II error (classifying the firm as bankrupt when it does not go bankrupt) of approximately 15%–20% (Altman, 2000).[2]

From about 1985 onwards, the Z-scores gained wide acceptance by auditors, management accountants, courts, and database systems used for loan evaluation (Eidleman). The formula's approach has been used in a variety of contexts and countries, although it was designed originally for publicly held manufacturing companies with assets of more than $1 million. Later variations by Altman were designed to be applicable to privately held companies (the Altman Z'-Score) and non-manufacturing companies (the Altman Z"-Score).

Neither the Altman models nor other balance sheet-based models are recommended for use with financial companies. This is because of the opacity of financial companies' balance sheets and their frequent use of off-balance sheet items. There are market-based formulas used to predict the default of financial firms (such as the Merton Model), but these have limited predictive value because they rely on market data (fluctuations of share and options prices to imply fluctuations in asset values) to predict a market event (default, i.e., the decline in asset values below the value of a firm's liabilities).[3]

http://pages.stern.nyu.edu/~ealtman/Zscores.pdf