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TheDumbMoney (43.68)

CAPS Jumps the Shark?

Recs

9

January 09, 2013 – Comments (17) | RELATED TICKERS: ABBV , ABT , SPY

So CAPS apparently did not properly take into account the split of ABT into ABBV and ABT (the Abbot Labs spin-off of AbbVie).   Really?  Really?  When is THAT going to be fixed?

17 Comments – Post Your Own

#1) On January 09, 2013 at 1:05 PM, PrototypeZ (28.07) wrote:

Just received this a few minutes ago. The summary is ABT has been adjusted, no ABBV shares in CAPS. They still did not do the math correctly, as I am still showing a 20% loss where I should be within 1-2% of break even. 

"On 2013-01-01, the stock ABT completed its spinoff of ABBV. The start price of your pick in ABT has been adjusted accordingly.

We will not automatically open a pick for you in ABBV."

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#2) On January 09, 2013 at 2:02 PM, TheDumbMoney (43.68) wrote:

It's total nonsense.  Fine if they don't want to open an ABBV pick automatically.  But they can't just adjust the ABT stock price without adjusting the historical record!  As you say, that makes it look like ABT has performed vastly worse than it has.  It's amateur hour.

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#3) On January 09, 2013 at 3:57 PM, ElCid16 (93.29) wrote:

On a somewhat related note, I'm not sure that they adjusted CATO for the huge dividend payout from early December, either.  Is it really up to CAPS players to post a blog in order for these types of issues to get corrected?  Shouldn't this be done automatically?  I had to create a blog post on IQNT a few weeks back to get that pick adjusted...

And a more important question might be: does anybody know of a free service similar to CAPS, anywhere on the web?  Is there nothing else like this - at all?

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#4) On January 09, 2013 at 4:05 PM, TMFCHarris (99.57) wrote:

Hi DumbMoney,

We had some delays with the corporate actions feed around the holidays, but ABT has been processed as a spin-off, and start prices and scores have been adjusted. Where are you seeing an incorrect historical record?

Fool on,
Chris

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#5) On January 09, 2013 at 4:25 PM, L0RDZ (84.78) wrote:

Expecting better of  caps is like a  pipe bomb dream...

I did find laughter in the jumping the shark analogy,  but  caps jumped the shark long ago...

It's like  a  patient  on life support inside an iron lung.

When the zombies come V^^^V it will be easy pickings...

MU WA>................

Oh get this  Al  Gore is now richer than Mitt Romney...

http://money.msn.com/now/post.aspx?post=8c2e441c-d512-4c88-8d16-d17d5d27c012

 

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#6) On January 10, 2013 at 11:13 AM, afewgoodstocks11 (27.15) wrote:

Well what is up with the ETP SUN merger?

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#7) On January 11, 2013 at 4:43 PM, TheDumbMoney (43.68) wrote:

TMFCHarris,

I'm seeing it in my CAPS score! :-)  And, I'm seeing it when you look at the chart for ABT.  The chart in CAPS is showing a massive drop in the stock price at the split date! 

A properly-accounted-for split does not show the old stock ticker getting pole-axed when the company spins off half of itself.  The historical price of the stock gets split-adjusted as well.

The problem is as plain as day both when you look up the ticker in CAPS generally and when you look at the pop up bubble of the chart when viewing the stock in my CAPS picks list.  The result is that CAPS is showing me with a significant losing score on that pick although in fact I think it has either beaten the market or come pretty close to it.

As of January 11, 2013 at 1:41pm PST when I am posting this, it is still a problem.  It would be great if you could fix it.

Thanks,

TDUM

 

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#8) On January 15, 2013 at 11:55 AM, TheDumbMoney (43.68) wrote:

This is still not fixed.  If you look at the stock chart it shows a 50% drop for abt on the day of the split.  This is absurd.

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#9) On January 22, 2013 at 1:04 PM, TheDumbMoney (43.68) wrote:

Still not fixed.,

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#10) On January 22, 2013 at 6:52 PM, TheDumbMoney (43.68) wrote:

Still not fixed.

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#11) On January 22, 2013 at 7:06 PM, TMFCrocoStimpy (95.53) wrote:

Not sure with what is happening with this, but the proper adjustment would be to treat the value of the ABBV shares as a special dividend rolled back into ABT. This preserves the appropriate gain/loss prior to the split, and then tacitly acknowledges that positions in ABBV cannot be opened automatically so the proceeds must be rolled back into ABT. Any score hiccups will resolve themselves. 

 

Foolishly,

-Xander 

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#12) On January 22, 2013 at 7:22 PM, ETFsRule (99.94) wrote:

That's weird. Graphed it on Yahoo, hope this works.

As of today your score shows a 6.9% gain for ABT compared to 24.59% for the S&P. So your score is -17.69.

With a starting date of 4/12/10, it looks like the S&P change is right. But ABT should be up around 31% according to Yahoo. So  your score is roughly 25% too low.

I'm guessing that they split it into ATV and ABBV (50/50) and processed the ABBV half correctly, but the ABT half still includes the 50% drop (as shown in the ABT chart). That how it looks anyway.

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#13) On January 24, 2013 at 2:41 PM, TheDumbMoney (43.68) wrote:

ETFsRule, you guess correctly.  The way to see it most clearly is to look at the CHART for ABT, NOT at the stock price.  If you hover over the ticker, or enter it, the little chart they always show with regard to every stock, in comparison to the S&P, shows a 50% drop on the split date.  The CAPS score is matching that drop on that chart. 

Croco, I see your point.  I still think you could just adjust the historical price of the ABT component of the two new companies, but another way to do it would be to do as you say.  What really should have happened is that an ABBV equivalent position (or downthumb) should have been opened automatically.  (That would match real life, of course, for holders of the stock, like me.  All of my positions for this player are real life positions, and I retain my ABBV and ABT shares after the split.)  I'm not sure of the best solution, but the ABT CAPS calls are still all completely wrong, weeks after the split.

Best,

TDUM

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#14) On January 24, 2013 at 5:02 PM, TheDumbMoney (43.68) wrote:

Still not fixed....

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#15) On January 25, 2013 at 12:52 PM, TheDumbMoney (43.68) wrote:

Ya no reparado.....

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#16) On January 25, 2013 at 6:46 PM, TMFCrocoStimpy (95.53) wrote:

TDUM,

We're talking the same thing, I believe.  By treating the value of ABBV as a special dividend, this would trigger a dividend adjustment to the cost basis (which is what you mention) and modify the historical values of the adjusted close price so that the transition across the spinoff is seemless. Maybe drop another message through the "contact us" link about this issue.

-Xander

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#17) On February 05, 2013 at 2:17 PM, TheDumbMoney (43.68) wrote:

This is still not fixed.  The chart now appears correct, but my pick still shows 30 points more underperformance than it did the day before the split. 

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