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Re: Rawnoc post# 5340

Thursday, 03/19/2009 8:38:57 PM

Thursday, March 19, 2009 8:38:57 PM

Post# of 8097
You are whistling past the graveyard too.

"your precious Z-score implies that 72% of companies that aren't profitable today will be filing bankruptcy in 2 years no matter what the economy is like."

False. Companies with negative earnings can still have high Altman Z-Scores, if they have strong balance sheets. The Altman Z-Score Model is nuanced enough to account for this, which is why it has such a high accuracy record.

"VBDG went public via reverse merger and part of the data you are inserting includes the data from the empty shell that VBDG merged into."

The data came from the VBDG's most recent SEC filings. Why should its reverse merger five years ago invalidate any of the most recent balance sheet data or the last four quarters of losses?
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