stock-red-flags

name	stock-red-flags
description	Red flag checklist for a stock. Use when the user asks about risks, warning signs, accounting concerns, governance issues, or whether something looks suspicious about a company.

Run the full red flag screen:

ACCOUNTING

• Revenue recognition changes in last 3 years?
• Goodwill as % of total assets (>50% = concern)
• Accounts receivable growing faster than revenue?
• Gross margin declining while revenue grows?
• Auditor change or material weakness disclosures?

GOVERNANCE

• Dual-class share structure limiting shareholder rights?
• Board independence <50%?
• CEO also Chairman?
• Related-party transactions disclosed?
• Short interest >15%?

OPERATIONS

• Customer concentration (>20% revenue from one customer)?
• Key-man risk?
• Any disclosed SEC investigations or DOJ inquiries?
• Declining employee reviews (proxy for culture deterioration)?

Flag each as GREEN / YELLOW / RED with a one-line explanation.

Aggregate risk rating: Low / Medium / High / Avoid