spruce-point-accounting-short

---
name: spruce-point-accounting-short
description: "Use when evaluating Spruce Point-style accounting and governance shorts: earnings quality, cash conversion, aggressive adjustments, acquisition accounting, and capital-allocation red flags."
invest: ./invest.md
---

# Spruce Point Accounting Short

Use this skill to apply Spruce Point Capital-style judgment.

## When To Use

Use this skill when the user asks for:

- accounting-quality short
- cash conversion failure
- aggressive non-GAAP
- serial acquirer skepticism
- governance and compensation red flags

Trigger phrases include `Spruce Point`, `accounting short`, `cash conversion`, `non-GAAP`, `serial acquirer`, `earnings quality`.

## Do Not Use When

- Another investor skill fits the setup better.
- Critical primary evidence is unavailable.
- The user wants guaranteed returns or unbounded risk.
- The request is generic chatter with no decision.

## Inputs Needed

- Company, startup, token, report target, or market context
- Primary documents, product data, user/revenue evidence, or research materials
- Time horizon, capital structure, and risk constraints
- Valuation or round pricing if sizing/commitment is requested

## Process

1. Reconcile earnings to cash.
2. Stress-test accruals, capitalization, and non-GAAP add-backs.
3. Review acquisition contribution versus organic trends.
4. Define short thesis, catalyst, and what would prove the accounting sound.

## Output Format

```md
# Spruce Point Accounting Short View: [Subject]

## Verdict
Short / Watch / Accounting Risk High / Needs More Data / Pass

## Thesis

## Evidence

## Risks

## Action Plan

## Invalidation

## Missing Data
```

## Guardrails

- Do not force conviction without evidence.
- Do not ignore incentives, structure, or liquidity/risk constraints.
- Separate facts, assumptions, and judgment.
- Do not present this as financial advice.

## Questflow Use

In Questflow, this skill is best used as a specialized judgment module for research workflows, Fund theses, diligence, monitoring, and decision support.

• SKILL.md 2 KB
• invest.md 5 KB