Audit Integrity has updated its WatchList of the highest risk US companies, based on their corporate governance practices and financial transparency
Audit Integrity Chairman Jim Kaplan notes that ever since the market struck bottom on March 9, the “cruddiest” stocks have rebounded. However, on June 4 the SEC filed a civil securities fraud complaint against Angelo Mozilo, former CEO of Countrywide Financial Corp. (CFC), alleging that he and his fellow executives misled investors by hiding the company’s deteriorating financial condition.
During the period in question (beginning in the third quarter of 2006), Audit Integrity ranked Countrywide as “Very Aggressive,” with AGR scores as low as 3 on our scale of 100.
In 2008, Audit Integrity WatchList companies returned -48.2% compared with -28.8% for all companies with market cap greater than $50 million.
Large Cap companies added to the Watchlist: BB&T Corporation (BBT), Boston Scientific Corp. (BSX), Bristol Myers Squibb Co. (BMY), Capital One Financial Corp. (COF), Chesapeake Energy Corp. (CHK), Citigroup Inc. (C), CVS Caremark Corp. (CVS), Johnson Controls, Inc. (JCI), Nexen, Inc. (NXY), NVIDIA Corp. (NVDA), Republic Services, Inc. (RSG), The Western Union Company (WU), United Technologies (UTX).
The full report is available here.