Short Analysis Methodology

• Accounting Red Flags (25%): Receivables vs Revenue growth, Inventory bloat, High accruals ratio
• Technical Breakdown (25%): Death cross, Head & shoulders, Support breakdown, Distribution days
• Insider Selling (20%): Large insider sales, Executive departures, Options exercises
• Earnings Quality (20%): Revenue recognition issues, Deferred revenue decay, One-time gains
• News Signals (10%): Fraud allegations, SEC investigations, Short seller reports

Score 60+ = Strong short candidate | 40-60 = Watch closely | Below 40 = Weak short signal