5 Signs Before Incorporating a Management Stock — Not in the Financial Statements

Every Monday, RaymondsRisk reveals the patterns of listed companies with red flags that it focuses on.

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This week's background: Oil price exceeds $100 + exchange rate approaches 1,500 won.

During macro shocks, companies with weak CB structures are the first to be shaken.

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Notable patterns this week

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Pattern 1 — CB balance high + company in refixing in progress

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Companies whose refixing provisions are triggered when their stock prices are falling

- Refixing → Increase in conversion volume → Additional downward pressure on stock price

- This pattern is especially concentrated in the energy, construction, and trade sectors.

Check points:

① Companies that have announced CB issuance in the past 3 months

② DART check whether refixing clause is included

③ Confirm the name of the CB acquirer corporation and the relationship with the majority shareholder

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Pattern 2 — A company undergoing a sharp decline in the majority shareholder’s stake

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Companies whose majority shareholders' shares have decreased by more than 5% in the past six months

- Risk increases, especially if it overlaps with CB issuance history

- Foreign sales + majority shareholder sales simultaneously = double pressure

Check points:

① Check recent disclosure of ownership status of executives and major shareholders

② Comparison of the time of share reduction and CB issuance

③ Check audit firm change history

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Pattern 3 — Companies with a rapid increase in executive turnover

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CEO or CFO replaced more than twice within the past year

- Internal division or structural reorganization = precursor to incorporation into managed stocks

- Focus on sectors under increasing pressure on performance due to surge in energy prices

Check points:

① Announcement of changes in registered executives Check the last 12 months

② Check the previous employment history of new executives

③ Whether any of your previous employers have a history of management or stock closing.

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Individual Investor Practical Checklist

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How to check your holdings in 30 minutes:

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Access DART electronic disclosure → Search company name

2. Is there any “convertible bond issuance” disclosure? → Check the refixing clause if there is one

3. Comparison of the three recent disclosures on “Ownership status of specific securities by executives and major shareholders” → Whether or not shares are reduced

4. “Audit Report” → Check whether going concern uncertainty annotation is included.

5. Check relational risk index at RaymondsRisk

By following these five steps, you can identify basic risk signals without analyzing financial statements.

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key message

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It is no coincidence that companies are the first to be shaken by macro shocks.

Structural vulnerabilities were already building up within the network.

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■ Reference materials

RaymondsRisk White Paper: https://www.konnect-ai.net/whitepaper- Heo Seo-young (2025): CB Conversion Event and Minority Shareholder Loss

-Carroll et al. (2024): Concurrent executive positions and concentration of capital power.

- Keum (2024): Demonstration of private CB risk signals

#relationalrisk #raymondsrisk #raymondsindex #konnectai