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Abandoned Securities

Click for 2017 Abandoned and Changed Securities

Click for 2016 Abandoned and Changed Securities

Click for 2013 Abandoned and Changed Securities

Click for 2012 Abandoned and Changed Securities

 

Scroll and read the below for explanation of the abandoned.

Stocks come and go. Mutual funds do the same, but with less frequency. Over the years, we simply replaced the losers with new securities. We decided to start retaining those who failed so that you will have some form of reminder that corporate and political leeching is natural and unavoidable. However, holding to the consequences of corporate leeching is avoidable. One must simply sell before the leeching exceeds the capacity of the original intention of the organization; that is to make money for the shareholder. Corporate leeches do not do that; they take money in one of two ways; stupidity or steal it. Either way, you lose, if you are holding.

Process:

1. Stocks or funds are identified as NLT, which means no longer traded.

2. After a period of NLT status, they are abandoned and placed here.

3. New stocks are found, primarily from constituent changes within the major indices. If a stock is removed from a major index, but still traded, it is most often transferred to the I-STOCK group of stocks, tracked by the Mid-term Indicant.

4. When a "too big to fail" emerges from bankruptcy and retains its old symbol, we perform a hypothetical reverse stock split so that pre-bankruptcy history is retained. If the organization retains the same dilettante management team that drove them to bankruptcy, you will appreciate these retention records. See example below.

 

The new stocks automatically receive a buy or sell signal at the time they are added to any listing. This maintains integrity in the Indicant Report Card.

 

Once a stock is NLT, no longer traded, and confirmed to endure that fate, indefinitely, it is deleted.

 

Legacy Companies

General Motors was traded under symbol MTLQQ.PK after filing its 2008 bankruptcy. The Indicant continued tracking under that symbol even after GM emerged from their post-bankruptcy IPO in November 2010. A hypothetical reverse stock split was computed to retain GM's pre-bankruptcy history. This maintains accurate historical performance and requires no adjustments to the Indicant's report card performance records. GM stock prices peaked in the early 1950's. It endured a bearish trend for a half a century. As you can see, it resumed that bearish trend after the Nov 2010-IPO.

Most stocks removed from the major indices by those exchanges, such as the NASDAQ100, are transferred to the Indicant Select Stocks. The Indicant Select Stocks collect such companies to continue trading and tracking them. Sometimes they recover from their reduced capitalization and are returned to the major exchanges. For example, GM was a DJIA stock. Upon filing bankruptcy, it was removed that that listing of stocks. Rather than abandoning it, it was transferred to the Indicant Select Stock group of companies by the Indicant staff.

New Companies

When a new company is listed on the major exchanges and the Indicant elects to track it, it may appear with some buy and sell signals that are inconsistent with the model. Immediately upon tracking, the Indicant generates back-to-back buy/sell signals or sell/buy signals. This is necessary since prior signals were not available to members until the Indicant starts tracking. These transactions are then updated to the weekly buy/sell listing. This also maintains integrity in the Indicant Report Card performance, where pre-tracking signals are ignored.

When first tracking a new stock or fund, the initial "out of model" trade signals can impose follow-on out of model trade signals until the security completes enough cycles to fall into model. To outperform buy and hold means you cannot lose money. If the initial out of model trade signal results in a losing hold position, the Indicant will signal sell to avoid any losses. So, from time to time on newly tracked securities, you will detect some trade signals inconsistent with the Indicant's normal trade behavior. Click this sentence to understand model normalcy.

  Changing Securities (To Another Listing)

   Fossil fell into Yellow Bear status in early 2015. Some stocks recover and return to their respective index listing. Others never recover. At the time of this writing, this stock remains listed on the Indicant NASDAQ100 listing, but nearing a shift to the Indicant Select Stock listing. Not escaping Yellow Bear status for a couple of years typically suggests the stock is doomed to never return to a major index listing, such as the NASDAQ100 or the Dow Jones Industrial Average.

  

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