These "Over-Earners" Have Suspicious Earnings

Suspicious Earnings by Eric Fernandez, head of Two Rivers Analytics, Inc. Could profitability drop away on your favorite long position? Could you identify these companies as good shorts? Our screen identifies companies that are suspicious “over-earners”. Suspicious Earnings Broadly speaking, there are two approaches to short idea generation: thematic or quantitative / screening approaches. We at Two Rivers are big advocates of getting the process right in our investing. We favor the discipline and repeatability of screening. Screening for shorts seeks to identify the most flawed companies by searching for outlier statistics such as, say, the least profitable, over-levered or worst…