spruce-point-accounting-short

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

1. Reconcile earnings to cash.
2. Stress-test accruals, capitalization, and non-GAAP add-backs.
3. Review acquisition contribution versus organic trends.
4. 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.