When it comes down to it, you simply can’t have confidence as an investor, especially in microcap land, while using traditional accounting standards. The elite Wall Street pros understand that GAAP and international financial reporting standards (“IFRS”) are not the guideposts investors used to treat them as. They aren’t giving the right data to help investors understand what a company is worth, and what the real returns of a business are. That’s why we at Altimetry have created a framework we call “Uniform Accounting” – shorthand for Uniform Adjusted Financial Reporting Standards (“UAFRS”). Under Uniform Accounting, we apply more than 130 different adjustments to bring the accounting statements to economic reality. We do this for 32,000 companies globally each week. If investors could have confidence that microcap companies were not being fraudulent nor the management being outright thieves, there would be massive opportunities. Using Uniform Accounting, you can start to see through the noise of the accounting statements. This is especially essential in the microcap space, where no analyst coverage exists to guide investors through distorted financial statements. But looking at the financial statements isn’t
abound. The SEC simply doesn’t have the time or manpower to protect investors from the next fraudulent ForceField Energy... at least until it’s too late. So, how can investors have confidence to know which company will be the next Netflix, and which will be the next ForceField Energy? A NEW SHERIFF IN TOWN This financial Wild West needs a new sheriff to help protect investors – or in some ways, to help investors protect themselves. Numbers are the language of business. There are two problems with the numbers that need to be dealt with before even thinking about the incredible opportunity in the land of microcap stocks. 1. First, an investor has to believe that the financial statements were prepared diligently. There is so little policing going on in this space that a management team could get away with not even reporting what is required. 2. In addition, even if the financial statements were prepared properly in accordance with generally accepted accounting principles (“GAAP”), successful investors must adjust those GAAP numbers to get to economic reality. You can’t know what the market really thinks about a company if you don’t know the company’s real performance. You can’t know what a company is worth if you don’t know its true earnings and cash flows.
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