GAAP

Theranos: Unicorn Valley's Madoff Moment

In “The Valley” the last 7 or 8 years has seen a morphing of true business fundamentals into a place of pure financially adulterated fantasy. Here is where the story changed from “Something built that customers love and will pay for," into “Build something that can give the illusion VC’s want to see and hear so they can pay for the right to then sell that illusion to Wall Street and we all get rich.” True business metrics or morals be damned.

Marc Faber Warns Of "Moral Degeneration" From America's "Consensual Hallucination"

The flood of money that central banks are creating pollutes the Western capitalistic system and free markets, as well as democracy. The consequences are anemic economic growth, deep social discontent, a culture of cheating, and moral degeneration. At the same time, “the bureaucracy is expanding to meet the needs of an expanding bureaucracy” (Oscar Wilde). Hardly a recipe for sustainable economic growth and rising standards of living.

Why Management Is Incentivized To Fabricate Earnings: It's All About non-GAAP Bonuses

Fabricating non-GAAP "earnings" is not just in the best interest of shareholders, whose investments are kept afloat by borderline fraudulent adjustments, charges and addbacks. As it turns out, management teams are likewise incentivized to represent the most manipulated and egreiously embellished results as well. And worst of all: there is nothing the SEC will do about it.

What The Charts Say: Fatally Attracted To New Highs

So we’re short term overbought, with 3 unfilled gaps below and lower highs still in place with stocks being the most expensive in years and yet the NYSE Composite Index is still below key resistance. Ignore it all if you find yourself attracted to new highs. They may indeed come, just remember who gets hurt when the attraction proves fatal...

This Is What Would Make Jeff Gundlach Bullish

Is there anything that would make a gloomy Jeff Gundlach bullish? As it turns out the answer is yes, but it is a big bogey. “The market has been going sideways for 18 months, and when it breaks, either up or down, it should be a large move. So let the market prove itself. If it breaks to the upside, which I define as accelerating above 2,200, it is a good, low-risk, ‘go with’ buy." Aka, chase the momentum in either direction.

Just Stop It!

The posse of fools in the Eccles Building is so petrified of a stock market hissy fit that it has more or less created a Wall Street doomsday machine.

Tiffany Shares Slide After Biggest Sales Drop In 6 Quarters, EPS Miss, Guidance Cut

Tiffany reported its steepest sales drop in six quarters, missing analysts' estimates, as a strong dollar discouraged tourists from buying its high-end jewelry and ate into revenue from markets outside the United States. "We faced numerous challenges, including continued pressure from foreign tourist spending in Europe, the U.S. and Asia, particularly in Hong Kong."

Knave Dave's picture

This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve tried to push back up to that distant high that means new life several times, but each time the market falls into a pit again to where the market is once again lower than it was a year ago. These are the last gasps of a stock market (and economy) that is struggling to rise again, which it simply cannot do now that QE has been turned off and the oxygen tank of zero interest is being slowly turned down.

SEC - Do Your Job!!

It looks like the SEC is finally ready to put a stop to accounting shenanigans.

Why One Trader Sees The S&P Plunging 500 Points

A "technical red flag" looms according to Sven Henrich - better known to Zero Hedge readers as Northman Trader. "The technical target that I see would be 1,573 on the S&P," Henrich warns an anxious CNBC anchorette, adding that the S&P 500 must stay above the 2,025 to 2,030 range in order to keep the index from falling by nearly 500 points from current levels. "If we break below this level by the end of May, then stocks may actually indeed retest lows or break lower.."