Forensic screening is not just about sentiment. It is about spotting the early warning signs that often precede sharp declines in micro-cap stocks.
Why AI Helps Forensic Screening
AI can parse large volumes of filings, announcements, and news to surface anomalies such as repeated auditor changes, unexplained related-party transactions, and sudden management reshuffles.
Key Forensic Signals We Track
- Illogical accounting items — large one-time adjustments with limited disclosure.
- Promoter-related party transactions — especially those lacking clear commercial rationale.
- Price-volume divergence — unusual price moves on very low volume.
Combining AI with Human Judgment
AI provides flags, but human validation is essential. We use machine signals to shortlist names, then apply a forensic checklist that focuses on disclosure transparency and management behaviour.
Applying the Screen
The strongest signal is a cluster: a stock with weak governance disclosures, high pledge levels, and earnings revisions should be avoided until the risk clears.