| 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