Friday, April 20, 2012

The Numbers Don't Add Up

As if investors don't have enough to do with respect to interpreting financial statements, it would seem in some cases they have to verify them as well. Small-cap company GLG Corp (GLE) recently released results that don't add up...literally!

Great catch by Bristlemouth, who noted that the items in the company's cash flow statement do not add up to what the company claimed. The individual cash flow line items suggested an operating cash outflow on the order of $40 million, while the company's statement claimed positive operating cash inflow of $12 million!

Might be a simple mistake, but certainly a reminder for shareholders to stay on their toes!

Disclosure: No position

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