Attention, those of you who own LL Flooring (LL): LL has filed for Chapter 11 bankruptcy and has changed its ticker symbol to LLFLQ. This will likely leave the stock price with little or no value in the future. At this time we recommend selling your shares on Trade Day and recognizing the loss in the Snider Investment Method®.
We recommend these steps to close the LL position:
- Sell all your LLFLQ shares. 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.
- 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 LLFLQ from your Allocated Cash Worksheet.
Lattco PRO clients: After you sell your shares of LLFLQ and update activity, please contact us. We will need to make some quick adjustments to close out the LL holding.
AutoPilot clients: At this time, the sell trade ticket is not built into AutoPilot. You will need to log in to TradeStation in order to sell your remaining shares of LLFLQ. 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. After you have successfully sold your shares, please contact us and let us know that you have done so; we will then adjust the account to close LL.
Bankruptcy is the biggest risk of the Snider Method. Although we attempt to avoid financially unstable companies through our screening process, the screens are not foolproof. In times of economic uncertainty and recessions, bankruptcy will become more common. We understand your concern and frustration about this situation.
If you have any questions, please don’t hesitate to contact us at support@snideradvisors.com or 1-888-6-SNIDER. We’ll be happy to walk you through the process.