Attention, those of you who own Diamond Offshore Drilling Inc. (DO): DO has entered bankruptcy, and has changed its symbol to DOFSQ. This will likely leave the stock price with little or no value in the future. At this time we recommend selling the shares and recognizing the loss in the Snider Investment Method®.
We recommend these steps to close the DOFSQ position:
• Sell all your DOFSQ shares.
• Record the information about the sale on your Individual Stock Purchase Record.
• Complete the “Profit from Closed Position” portion of the Individual Stock Purchase Record. In this case, ‘Profit’ will be negative.
• Record the loss on the Monthly Stake Worksheet.
• Remove DO from your Allocated Cash Worksheet.
Lattco PRO clients: The calculations and adjustments will automatically be done the moment you sell your shares of DOFSQ and update activity.
AutoPilot clients: The calculations and adjustments will automatically be done the moment you sell your shares of DOFSQ and update activity. At this time, the sell trade ticket is not built into AutoPilot. You will need to log in to Ally Invest in order to sell your remaining shares. The sale trades can be placed next Trade Day or before if there are no open options. When placing the sale order use a limit order form rather than the normal market order. We recommend setting the limit to the current BID price.
Bankruptcy is the largest risk of the Snider Method. Although we attempt to avoid financially unstable companies through our screening process, the screens are not foolproof. Diamond is one of the first victims of the bad combination of the oil price war and significantly reduced demand from the Coronavirus. We understand your concern and frustration about this situation.
If you have any questions, please don’t hesitate to contact us at firstname.lastname@example.org or 1-888-6-SNIDER. We’ll be happy to walk you through the process.