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<p>[QUOTE=&quot;Cloudsweeper99, post: 1294514, member: 3011&quot;]Enron and MCI both had huge debt loads.&nbsp; In the case of Enron, there were several analysts at the time questioning their accounting practices and issuing sell ratings, but it was too much fun watching the stock price go up for many people, and who needs all of that thinking anyway.&nbsp; With MCI, I recall industry analysts being puzzled at how they could deliver services for a price that no other company could come close to while being profitable.&nbsp; Turns out they couldn&#039;t.&nbsp; With Lehman, I doubt many conservative invesors owned it, or should of owned it given their high debt level and derivative exposure.&nbsp; When others cut off their access to financing, they went under, of course.&nbsp; It would be like owning Morgan Stanley or Bank of America today and not seeing the risk.&nbsp; My only point is that situations like this are very easy to avoid by just choosing companies with low debt levels, earnings, and positive cash flow.&nbsp; I know folks here like to cherry pick the investment disasters to prove a point, but it was very easy to see at the time that these were high risk enterprises even if their sudden bankruptcy was not predictable.[/QUOTE]</p><p><br /></p>

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