Even though it is apparent I have joined the party a little late, however I would like to second you in your analysis on. Despite having a limited career span as an Equity Research and IB analyst I have myself seen several analysts make same mistakes. Call it a blessing in disguise, graduating with a bachelors in Accounting and Finance
coupled with limited access to services such as Bloomberg have actually taught me to go directly to audited financial statement for fundamental analysis. Prior to analysis I prefer absorbing over 5 years statement cover to cover to see how a company and its management has evolved . I have always been a huge proponent of detailed segment analysis and independent research to corroborate management claims. Like yourself, I once uncovered management of a coverage company, prior to a hefty right issue, making false claims of improvement in core margins reflecting sustainable growth. Where as, the improved results were due to imposition of temporary import tariffs which were revised by next quarter and channel stuffing. Point being analysts should understand financial statements and their interconnectivity via superior understanding of accounting standards and their applications and give close attention to the business model itself understand the dynamics of exogenous and endogenous factors affecting the bottom line of the company.