StockFetcher Forums · General Discussion · Adjusting data fro special dividends or distributions<< >>Post Follow-up
miko
68 posts
msg #98103
Ignore miko
12/18/2010 11:48:54 PM

I've asked support to correct AWI and MAXY data to account for a special dividend and a stock/cash distribution. One look at the chart is all it takes to see the merit of doing so. Sometimes data providers are reluctant to make such changes if nobody else does -- of course, this can lead to a situation where nothing gets done because nobody is willing to go first.

If you agree that this kind of adjustment should be made, please let support (http://help.stockfetcher.com/sfhelp/?id=100241 or send email to support@stockfetcher.com) know, I feel like a lone voice.

Kevin_in_GA
4,538 posts
msg #98109
Ignore Kevin_in_GA
12/19/2010 9:47:20 AM

I've asked support to correct AWI and MAXY data to account for a special dividend and a stock/cash distribution. One look at the chart is all it takes to see the merit of doing so. Sometimes data providers are reluctant to make such changes if nobody else does -- of course, this can lead to a situation where nothing gets done because nobody is willing to go first.

If you agree that this kind of adjustment should be made, please let support (http://help.stockfetcher.com/sfhelp/?id=100241 or send email to support@stockfetcher.com) know, I feel like a lone voice.
+++++++++++

Hate to sound dumb here, but what exactly are AWI and MAXY data?

miko
68 posts
msg #98110
Ignore miko
12/19/2010 11:44:07 AM

AWI and MAXY are stock symbols, they show up in some of my scans because of what appear to be big down days.

miko
68 posts
msg #98252
Ignore miko
12/27/2010 9:51:49 PM

STR and STV are 2 more stock symbols whose data needs to be adjusted. A glance at a chart makes it apparent (STR moreso than STV).

miko
68 posts
msg #98253
Ignore miko
12/27/2010 11:34:12 PM

Stockfetcher policy:

"Concerning dividends and company "spin-offs", we typically do not adjust prices for these events. We definitely understand that this issue can be argued either way, but at StockFetcher we have chosen to not adjust prices for dividends or company "spin-offs". "

IMHO. it can't be argued either way, a visual comparison of the charts done either way will make an obvious choice. Not adjusting gives the appearance that the stock had a drastic or even catastrophic event when that is hardly the case. I think the only choices are to adjust or to consider it a completely different stock and start the data anew from that point.

If enough people agreed and so informed stockfetcher we might get somewhere.....

BTW, not quite sure what "we typically do not adjust prices for these events" means, is it done sometimes, but not often?

stockfetcher
963 posts
msg #98255
12/28/2010 7:56:19 AM

You are certainly correct that a visual comparison of the company charts you mention would indicate a severe event has occurred that has reduced the stock price and company value. We understand that a special dividend or spin-off does not necessarily imply a reduction in company value (indicated in the charts) as the value lost in retained earnings is likely replaced by an increased share issuance.

However, it is our view that these are extraordinary events that do potentially have an impact on the company with respect to that reduction in retained earnings. This reduction potentially could be viewed as a restriction on the company by altering the liquidity of the company. Because of this, and the extraordinary nature of such events, we do not historically adjust prices for these events.

With respect to the quoted line you mention, our intent was simply to point out that we do not, as a practice, adjust for the special dividends and spin-offs; however, we can't predict an event in the future which may prove to be an exception to this practice.

StockFetcher Support

miko
68 posts
msg #98348
Ignore miko
12/31/2010 10:34:48 PM

A well thought out and considered response. I can agree with the premises, but I would reach a different conclusion -- I would rather consider it to be a new issue after the spinoff or special dividend and treat it like an IPO that had previous data because of using the same symbol. Too many metrics (50MA, % pullbacks, etc) are thrown out of kilter if the data is kept intact.

Since I seem to be in a distinct minority (maybe most simply don't care one way or the other), I will choose to add these symbols to my ignore list and leave it at that.

StockFetcher Forums · General Discussion · Adjusting data fro special dividends or distributions<< >>Post Follow-up

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