Is Gold a Pet Rock; Hedge Fund Analyst Quiz

Gold is money

Is Gold a Pet Rock?

Hedge Fund Analyst Quiz

Your boss drops the earnings announcement from Skyworks (SKWS) on your desk.   He asks if he should buy the dip?


You spend five minutes on the 8-K: SEC-SWKS-4127-16-57

What hits you like a frozen flounder across the face?  Red lights should be flashing and sirens blaring.   You tell your boss……………………….

Anyone NOT figuring this out needs to read: Earning Quality

or face this:

Socialism at work:  A frantic search for food in Venezuela.   I am offering $5,000 to anyone who can explain how Socialism improves the lives of ALL citizens over the long-term? Can Socialism ever NOT collapse into death and despair?


10 responses to “Is Gold a Pet Rock; Hedge Fund Analyst Quiz

  1. Inventory increased 63%.

  2. The $114 mln. increase in Inventory from April to July is suspicious..

  3. Is the increase concentrated on finished, work-in-progress or raw materials… ? I’m just playing the devil’s advocate

    • That’s a good question, but the issue might be that the company EXPECTS a big ramp-up of sales AFTER the recent sales softness. I doubt it, but you would want to dig further if you had any doubts. But usually when you see flat sales growth with growing inventory (especially finished goods) there will be low quality of earnings in the future.

  4. Devil’s advocate too.

    The 62% inventory increase is vs. 9 months prior. Versus last quarter it’s a 31% increase, which still sounds big, but they had a similar step change for the quarter ending 10/3/14.

    I think you’d have to know whether this is common for the industry.

  5. Sorry, but “earning quality” link doesn’t work.

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