How to spot a value trap: run the four warning signs against free SEC EDGAR numbers. On one Nasdaq small cap, AI could answer just one of the four.
Ford's P/E reads None, its ROE is -18.2%, its P/B is 1.56. Here is the undervalued-stock screening prompt I ran on a free screener, checked at SEC EDGAR.
Every US public company files its annual report (10-K) on SEC EDGAR for free. Download it, drop it into ChatGPT or Claude, and get the business model, three years of numbers, and the risk factors in about 3 minutes. Here is the exact routine, the copy-paste prompt, and the guardrails that stop the AI from making numbers up.
Backblaze (BLZE) signed a $335 million, five-year storage deal with CoreWeave on June 23 and the stock more than doubled, from around $7.50 in May to about $17.80 by mid-July. I pulled the 10-K and the 8-K from SEC EDGAR and did the math on whether the re-rating holds: the deal versus current revenue, the new valuation, and the scenarios where this breaks.