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  5. MISC: Everyone, what are your investing red flags? [Miscellaneous]
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Q: Everyone, what are your investing red flags? Clayton
Asked by Clayton on January 02, 2025
5i Research Answer:

No single item might be one that excludes us from looking at an opportunity but some things that make the hair on our necks perk up would be:

- Overly promotional management or teams too focused on their share price.

- Consistent dilution through equity issues (particularly if the equity raises aren't going to obvious growth projects).

- Less a 'red flag' but companies operating/domiciled in one country but listing on the market of another (moreso for smaller companies) is worth further understanding.

- Consistently not meeting a companies guidance that they issue themselves.

- Changing of key metrics that the company targeted/tracked in the past. Sometimes this makes sense as a company grows but also can be a sign they are trying to shift the narrative or focus for some reason.