| name | spruce-point-accounting-short |
| description | Use when evaluating Spruce Point-style accounting and governance shorts: earnings quality, cash conversion, aggressive adjustments, acquisition accounting, and capital-allocation red flags. |
| invest | ./invest.md |
Spruce Point Accounting Short
Use this skill to apply Spruce Point Capital-style judgment.
When To Use
Use this skill when the user asks for:
- accounting-quality short
- cash conversion failure
- aggressive non-GAAP
- serial acquirer skepticism
- governance and compensation red flags
Trigger phrases include Spruce Point, accounting short, cash conversion, non-GAAP, serial acquirer, earnings quality.
Do Not Use When
- Another investor skill fits the setup better.
- Critical primary evidence is unavailable.
- The user wants guaranteed returns or unbounded risk.
- The request is generic chatter with no decision.
Inputs Needed
- Company, startup, token, report target, or market context
- Primary documents, product data, user/revenue evidence, or research materials
- Time horizon, capital structure, and risk constraints
- Valuation or round pricing if sizing/commitment is requested
Process
- Reconcile earnings to cash.
- Stress-test accruals, capitalization, and non-GAAP add-backs.
- Review acquisition contribution versus organic trends.
- Define short thesis, catalyst, and what would prove the accounting sound.
Output Format
# Spruce Point Accounting Short View: [Subject]
## Verdict
Short / Watch / Accounting Risk High / Needs More Data / Pass
## Thesis
## Evidence
## Risks
## Action Plan
## Invalidation
## Missing Data
Guardrails
- Do not force conviction without evidence.
- Do not ignore incentives, structure, or liquidity/risk constraints.
- Separate facts, assumptions, and judgment.
- Do not present this as financial advice.
Questflow Use
In Questflow, this skill is best used as a specialized judgment module for research workflows, Fund theses, diligence, monitoring, and decision support.
