Grumpy Old Accountants
One of our loyal followers recently brought to our attention a company that just might be our first candidate for this year’s “poster child” of bad financial reporting: ZAGG. The Company indicates that it is “Zealous About Great Gadgets,” and apparently the market likes this zealot. ZAGG’s stock price has soared about 40 percent in the last several months, driven by both top and bottom line growth, and improving operating cash flows, all of which have been blessed by the company’s new Big 4 auditing firm, KPMG. So, what’s the problem? The numbers are giving off so much smoke that we think management may have blinded
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