EVENTS:   The Roaring 2020s or a Rerun of the 1970s? - Edward Yardeni/Yardeni Research - 24 Mar 26   Best Equity Short Ideas Conference Call 13 - Thomas Chanos/Badger Consultants & Dr. Aaron Fletcher/Bios Research & Jonathan Telgener/Channel Dynamics & Ed Steele/Iron Blue Financials & John Zolidis/Quo Vadis Capital & Mark Hiley/The Analyst - 26 Mar 26     ROADSHOWS: Chinese Equity Ideas & Channel Checks Across 50 sub-sectors - Don Ma /Horizon Insights   •   London   23 - 27 Mar 26       Long Short European Equity Research - Harry Grist /The Analyst   •   New York   26 Mar 26       Fundamental US Healthcare Short Ideas - Dr Elliot Favus /Favus Institutional Research   •   London   27 - 27 Mar 26      
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Fortnightly Publication Highlighting Latest Insights From IRF Providers

Company Research

Stocks flagging as "high risk" for DSI and Inventory Breakdown

Forensic Alpha

Most companies provide a detailed breakdown of overall inventory in the notes to the accounts, showing how it splits into "Finished Goods", "Work in Progress" and "Raw Materials". Forensic Alpha’s systems can now extract this data and analyse changes over time to alert investors of any concerning patterns. European stocks flagging as "high risk" for both DSI and Inventory Breakdown include GN Store Nord, Pandora, SCA and Vestas Wind Systems.

Edition: 175

- 08 December, 2023


GN Store Nord (GN DC) Denmark

Technology

Forensic Alpha

Forensic Alpha always finds it interesting when a company flags on their system during a large capital raise since the incentive for manipulation is particularly high. GN's rapid increase in capitalisation of costs (especially since 2020) should be cause for concern. This pattern stands in sharp contrast to the amortisation of these intangibles remaining remarkably flat (aided by the "Useful Life" of the software intangible suddenly expanding from "1-7 years" in 2021 to "3-10 years"). If Demant is indeed actively looking at the company, some careful due diligence on the intangibles would be a good place to start.

Edition: 155

- 03 March, 2023