So pictures and lab results are the basis of your due diligence? You mention Enron as an example of a fully reporting company. You make a good point regarding the issue that fully reporting companies can still commit fraud, however good the point is, it is irrelavant. Without the benefit of diclosure provided sec filings, one does not posess the framework to evaluate the various transactions of the company. Many such dealings may not be fraudulent, but may reflect poor judgement and may have negative outcomes for common shareholders.
Here's and example. Do you know how much of the $200,000 that was supposedly paid to USSE recently has gone to salaries? Do you know what else may have been given in consideration by USSE to this group? Did they receive common stock? Was it an amount that might be considered by some to be excessive?
I am not suggesting that there was or was not anything else as consideration but how would one know?