# Stock Red Flags

> 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.

- Skill: `daringanitch/stock-red-flags` (Agent Skill)
- Install (CLI): `npx skillmds@latest add daringanitch/stock-red-flags`
- Raw SKILL.md: https://api.skillmd.com/api/skills/daringanitch/stock-red-flags/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Finance & Business
- Author: daringanitch (https://skillmd.com/u/daringanitch)
- Updated: 2026-09-21
- Page: https://skillmd.com/skills/daringanitch/stock-red-flags

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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**