- 4 min read
Same Metric, Different Quarter: The Comparability Checks Behind a Peer Median
A peer median looks authoritative even when one company is reporting a different quarter, a different currency, or only a slice of its business; this post walks through the checks LacunaIndex runs before it lets a peer set produce a verdict.
- 5 min read
The Trophy Case Test: Why "Award-Winning" Should Make a Diligence Analyst More Suspicious, Not Less
Investor decks lean on award badges and "best of" lists as proof of market leadership, but many of those badges are bought rather than earned, and a credibility model that scores the issuer, not just the headline, is the only way to tell the difference.
- 5 min read
The Hard Cap: Why "AI Credibility" Can't Score Above 35 Without a Revenue Line
When a scoring rubric lets fluent narrative move the same dial as hard disclosure, the more persuasive management team always wins, so LacunaIndex clamps specific score dimensions to a fixed ceiling until named disclosure items exist, sector by sector, regardless of how the story reads.
- 6 min read
No More Ghost Executives: Why Leadership Claims Need a Disclosure Trail, Not a Personality Label
When an AI-generated report calls an executive a "ghost" or scores them as a personality archetype, a diligence analyst has no way to check the claim against a filing -- LacunaIndex retired those labels and rebuilt leadership analysis around five disclosure-anchored fields instead.
- 4 min read
The Vintage Blend: What a Sector Valuation Median's "As Of" Date Doesn't Tell You
A sector median forward P/E stamped "as of today" is often built from peer observations taken days or weeks apart, and the timestamp rarely discloses that spread.
- 4 min read
The Capital-Discipline Floor: Why a Profitable Core Can't Buy Cover for an Unprofitable Bet
When one segment prints most of the profit and another burns billions with no path to breakeven, LacunaIndex's scoring methodology nets the two for operating execution but refuses to net them for capital-allocation accountability once a fixed loss threshold is crossed.
- 5 min read
The Partial Restatement Problem: Why "Use the Latest Filing" Corrupts Financial Comps
When a company amends a prior filing to fix one line item, a pipeline that just grabs "the latest filing" can silently blend the corrected figure with unrelated numbers the amendment never touched, and diligence teams have no way to tell which cells actually came from a restatement.
- 8 min read
When Buybacks Stop Being Bullish: Broadridge, GM, and the Capital Allocation Test
Two companies can buy back stock aggressively and tell completely different stories. The signal isn't the size of the authorization — it's whether cash flow, reinvestment, share retirement, valuation discipline, and operating performance confirm what management wants investors to believe.
- 4 min read
Scheduled Sale or Signal? Why Insider Selling Needs a Rule 10b5-1 Split Before It Means Anything
Buy-side analysts treat a headline insider-sale number as a single data point, but pre-scheduled Rule 10b5-1 trades and discretionary trades carry opposite signal value, and LacunaIndex's Form 4 pipeline tags every transaction with its plan status so the two never get averaged into a false signal.
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