stanu, I also get a little jittery when some companies post much higher margins then their peers, and I can't figure out why. However, that alone certainly doesn't mean there's fraud.
In fact, I recently took profits on a Mexican Poultry company, IBA, b/c its margins seem extraordinarily high - and I don't know enuf about their biz to know if its sustainable (I do have an order in to rebuy it at lower levels).
One of the biggest frauds in recent history was MCI-Worldcom . All their big competitors, notably ATT, could not figure out why their margins were so high. The pressure to keep up w/Worldcom helped helped cause the great tel-com infrastructure bubble of the 90's.
Anyway, thanks for your input Stan.
Good luck.
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