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Investors should be concerned when auditors express concerns about a company’s ability to operate as a going concern over the next twelve months. However, it is also important to note that companies that issue such warnings often survive. Also, a large portion of companies that end up in bankruptcy never issued such warnings.

Some retailers such as Old Navy have offered a full array of sizes of clothing. However, such merchandising programs are plagued with problems. There is too little demand for the very small sizes and the very large sizes. As a result, negotiating power wanes when retailers procure these sizes. It is just harder to manage a wide range of sizes. It is logical to charge higher prices for large sizes since more material is used and more shelf space claimed. Also, as the sizes of clothing reach the upper bounds, the clothes often have to be redesigned since very large size people have different proportions than other people. For instance, the pockets in shirts and the waistbands in pants have to be moved while dress lengths shift. Big-sized people may not think it is fair to pay higher prices than everyone else. Also, very large people may not feel comfortable shopping for clothes alongside more fit people.

The following are among the challenges that air taxis (or eVTOLs, eletric vehicles takeoff and landing) need to resolve for that industry to become viable:

– They need to site, permit and construct a sufficient number of places for their vehicles to land and take off. These landing spots must be in places where significant noise is tolerated. The structures must be strong enough to support the weight of eVTOLs and be able to accommodate massive bursts of electricity for charging the vehicles. The costs to retrofit will be enormous. To keep the lines to these landing spots clear, the erecting of further structures would be severely limited, which would be politically unpalatable.

– FAA certification is mind-bogglingly expensive.

– The public is concerned about many cars flying above their homes.

– Efforts are needed to integrate eVTOLs into the existing air traffic control system.

According to Audit Analytics, U.S.-based public companies filed 1,441 restatements, more than four times the 336 restatements filed in 2020. Many of these restatements were related to accounting for warrants. The number of restatements in 2022 is expected to revert closer to the mean.

It is rarely a good sign when a company spends more money on investor relations than on research and development. (I have seen this happen.)

Some of the Retailers’ Revenues Will be Lighter Due to Reduced Demand

Lots of retailers are warning investors that their revenues may dampen due to their inability to secure sufficient inventory. However, some of the retailers’ revenues will be lighter due to reduced demand. Thus, not all retailers that report lighter revenues…

 

Lots of retailers are warning investors that their revenues may dampen due to their inability to secure sufficient inventory. However, some of the retailers’ revenues will be lighter due to reduced demand. Thus, not all retailers that report lighter revenues should be given a pass. Some of them are displaying merchandise that customers don’t want.