Bankruptcy filings reaching multi-year highs....
- Thread starter Nighthawk
- Start date
NorgateData
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I think the more interesting (perhaps leading) metric might be the number of major-exchange-listed securities that have performed reverse splits in order to keep themselves listed (at least on US exchanges, that have a $1 stock price limit).
I avoid stocks that have done a) Reverse Splits b) transitioned from being an OTC security to an exchange-listed security, or c) have been Blank Check Companies (this includes SPACs) for at least 9 months prior.
And as soon as company transitions from exchange-listed security to OTC, in the absence of other signals (trailing stops etc.) it's a significant sign to exit that position. There are exceptions, but very very few.
All of the above can be incorporated into systematic trading fairly easily.
I avoid stocks that have done a) Reverse Splits b) transitioned from being an OTC security to an exchange-listed security, or c) have been Blank Check Companies (this includes SPACs) for at least 9 months prior.
And as soon as company transitions from exchange-listed security to OTC, in the absence of other signals (trailing stops etc.) it's a significant sign to exit that position. There are exceptions, but very very few.
All of the above can be incorporated into systematic trading fairly easily.