Old Business, New Accounting Games

Vic Bonilla of Jehoshaphat Research makes the short case on Dun & Bradstreet (DNB). Central to their thesis, Vic believes that the company’s cash flows are vastly overstated, rendering it virtually impossible to pay down its mountain of debt. But DNB’s aggressive accounting tactics aren’t confined to its revenues and cash flows. The company also appears to be employing a number of creative methods designed to inflate non-GAAP earnings. While the true picture of this deteriorating business has been hidden from investors, insiders have seen the writing on the wall and have recently turned into aggressive sellers.