Stock Split Adjustment ROST

Hi Guys,

I think something went wrong with the recent ROST stock split. In some of my portfolios the stock is included and the average buying price is not adjusted at the moment. Thus, the position is considered as bought too expensive which has a huge negative impact on recent performance if the position is large.

Please fix that!

Thanks in advance and regards,
Martin

Edit: In my case the buying price is 26.40 USD (buying date was in 2010 - there was no price like that to that date). The buying price should be adjusted to 13.20 USD.

2010? Is this a sim ? Which sim ? Please be as specific as possible . Thanks

Hi Marco,

It is a “My Live” with the name “M. - High Quality - Final”. Here is a screenshot of the position:

It says, days held are 1869 which equals approximately 5.1 years (ca. May 2010). But - as a proof - there is no buying price of 26.40 in 2010. I think the current price has been split adjusted now (there was a 2:1 split a few weeks ago from ca. 100 to 50). Therefore, the buying price of 26.40 should also be split adjusted to 13.20 USD which is a possible buying price in 2010. I hope you get my point.

And here is a screenshot of the chart:

As a result, the position got valued at only the half of its original value immediately after the stock split which led to a significant portfolio loss of 5% of the portfolio value (position size is usually 10%. 10% * 1/2 = 5%). You can double check this in the performance curve (check the latest kink).

How did I recognize that? I downloaded the performance curve and the portfolio composition two weeks ago. And there wasn’t the mentioned drawdown. Also the position size was >10% and not the 5.81% which are stated in the screenshot.

I hope I was specific enough now. Let me know if I should clarify more things.

I would be very happy about a fix.

Regards,
Martin

For further support, here are two holdings screenshots as of 06/11/2015 and 06/12/2015 (directly after the stock split). As you can see the value of the position was cut in half on one day to the other due to the price adjustment. In reality, the number of stocks should have been doubled after the stock split.


Edit: As just tested, this issue doesn’t happen when backtesting simulations! Seems to be a My Live-Issue. In the simulation, the number of stocks is correctly adjusted for the split.

It’s fixed. This was a weid one: this Live Port started out as a Simulation. You then converted it to a live port on 6/12/2015, the day of the split, around 6AM. But by then the logic that processes splits had already ran, which is why it was missed.

Ok that’s really bad luck. Good to hear that his was only this type of error and nothing systematic :). Thank you very much for the fast fix! I really appreciate that!

Sadly, now some stats in the portfolio are missing after your correction. Do you think you can restore that? Sorry for the circumstances…

The stats will be updated tonight.

Marco, thank you very much. Can’t emphasize enough how great the support is!

Marco, I think, something went wrong again. The Ross Stores Avg. Share Cost is now given as $17.60 which is noch possible (stock was bought at 05/10/2010). Live-Simulation name is: “M. - High Quality - Final”

I think something went wrong with the split adjustment. The original buying price was $52.79. Since then, two 2:1 stock splits took place. Therefore, the split-adjusted price should be $52.79/4 = $13.20 which is the exact price at 05/10/2010. The price of $17.60 would implicate a 1:3 split adjustment which I think is not correct. Thus, the performance stats of the position within the live portfolio ist also not correct. At least I’m not sure whether this affects overall performance.

I would be very happy about a fix. Thanks for your time!
Martin

Where do you see 17.60 ? Don’t look at Holdingss->Historical. Those prices are split adjusted. Take a look a the real ledger of actual transactions in Transactions->By Symbol. This ledger is point in time.

Thanks for your response. That’s correct. Ledger is correct!

But Portfolio data is actually not correct. The original buying price was 52.79 as stated in the ledger. After two stock splits the adjusted buying price should be 52.79/4 = 13.20. But it’s 17.60 in the portfolio’s data (which is 52.79/3). Look here:

Also, as a result, the performance data of 200.57% is wrong since the actual performance should be 52.79/13.2-1 = 300%.

Thanks for your time!

A portion of original purchase was sold with some (profit taking?) rule. I think it takes that into account

Yes, that is correct! There is a profit taking rule in place in case the position size gets to large in relation to the overall portfolio size.

But how does that affect the buying price? For me it’s not comprehensible how the stated buying price and the performance is calculated.

As a remember: At the beginning of this thread we had an issue regarding the transfer from simulation to MyLive. At the transfer day, also the 2:1 stock split at ROST took place which was unintended ignored by the system. Therefore, you had to add the adjustment manually. Maybe something went wrong here?

Marco,
Simulation is not handling reverse splits on a short sale.
The port is “Blue Unicorn”
Transaction details:
Short NBG on 5/20/2013 at the opening price $2.16
Company does a 1 for 10 split, (a reverse split) on 5/30
Model covers on 5/31/2013 for 8.69 per share.
Transaction was reported as a loss.
As I see it, the proper accounting is:

2.16 * 10 - 8.68 = $12.92 per “post split share” profit.

This was working a few days ago, perhaps one of the updates in this area broke it.

I checked a previous sim that last ran on 7/23/15
in this sim the transaction was handled properly.

We had a problem with splits starting yesterday ~5PM to now. Please try again now

Marco,
Thanks for the quick response!
The short trade is now correctly priced.

Any other idea on my issue, Marco?
Thanks for your time!

Martin, I can’t find your sim anymore. Can you check again? Thanks

Marco, it’s a MyLive Portfolio (it was a simulation before the transfer to MyLive). The name of the MyLive is “M. - High Quality - Final”.