Intro to Stocks Lesson 5
Exceptions to Rules

I arbitrary selected an ordinary kind of company for your first go at securities analysis, so I didn't mention some specialized kinds of things that trade "just like" stocks but really aren't.  The specialized kinds of things require different approaches to analysis than ordinary stocks because of their very nature.  Among the worthwhile specialties are closed end exchange traded municipal bond funds ("cemunis"), real estate investment trusts, and "registered investment companies" which hold a slew of different stocks in a "portfolio" which "can be" traded just like a stock.  Although the beginning process of getting the identification information is similar for them as in Lesson 1, nearly everything else is different, including the sources of the information to evaluate them and the methods of evaluation.  Because of the length of describing the evaluation processes for each of the worthwhile specialties, I am going to cover only cemunis in Lesson 6, leaving REITs and RICs for Lessons 7 and 8.
      Although you likely now have the gist of the problem for "most" stocks, there are some things I want to make sure that you know about with the level of knowledge you *have* acquired.  There are a slew of weird things which I strongly suggest you avoid after identifying them. I have listed each of them below by their identifying markings along with the reasons that I avoid them like the plague that they are.  You should of course retain your Lesson 1 information notepad filed under any such ticker symbol just as you would with a potentially worthwhile stock, so that you don't have to redo the beginning analysis at a later time.
      LIMITED POTTYNERDSHIPS.  These you can identify simply by their name in the "*addr" lines.  If the name ends in "LP" or "LLC", what they are is a limited pottynerdship (which others usually call "limited partnerships").  What's horribly wrong with them is that, in addition to potentially stealing your money by a variety of means including the general partner "reorganizing" your values out of existence (which several that I've been involved with over the years have done), they only "appear" to be paying "dividends".  What attracts suckahs to them is that those distributions are typically well above the yields on properly organized companies.  Setting aside the risk of malfeasance by the general partner stealing your property, all such Limited Pottynerdships also steal your LIFE via issuance of Form K-1 instead of Form 1099 when reporting the amounts of those distributions to the IRS and belatedly to you (stalling out your tax filings until they get a round tuit and send their messy Form K-1 to you).  It adds additional HOURS to your tax preparation process to deal with all the messy complications and extra tax forms required to be filed which result from their IMPUTATION of income and expense items to you, some of which can have no resemblance to the amounts of the distributions you (or your broke maker these days) received from them.  Tis a far better thing to wait, even years if necessary, for some legitimate corporate form to be paying a reasonable yield than to have to cope with these life stealing scammers.

      BRITISH EXPROPRIATORS.  As part of years ago Lesson 2 discussions with an early student, I talked through some parts of this problem.  One aspect is so called American Depositary Receipts/Shares ("ADRs" or "ADSs") which are merely an *IOU* of a felonious bunko which charges illegal assessments for *their* possession of actual shares of the foreign company involved which itself is based in the criminally expropriating of American property Untied Queendumb (since there hasn't been a male monarch in nearly a century, referring to that thugocracy as "the UK" is a contradiction of reality).  The part about illegal assessments by the felonious bunkos issuing IOUs for foreign shares (under such euphemisms as "American Depositary Receipts" or "American Depositary Shares") is quite general regardless of the country in which the corporation is domiciled, not only those domiciled in various of the geographies ruled by Her Mud Jesty of Great Britain and Northern Ireland.  You can often identify that aspect of the problem from the name shown on Yahoo or on the SEC web site which includes the ending "ADR" or "ADS".  It didn't "used to be" that way with foreign companies whose Merkan bunkos issued such IOUs.  But in the past several years, the felonious bunkos have prevailed on the criminally corrupt "regulator" the SEC to issue a "bulletin" telling them to steal from the owners of those IOUs they or their predecessors in the bunko industry issued as "investments".  I currently have 127 such illegally assessing bunko IOUs styled as "foreign company ownership" in my Note File system.
      But finding that a company's address is in England, the United Kingdom, or Ireland is an especially bothersome situation.  Following are a couple of examples of how the Untied Queendumb established itself as a massive criminal expropriator of the property of American citizens.
      Many years ago much of my property was in the adverse possession of a felonious bunko "trustee".  Among other questionable securities that they dumped into my portfolio, without my consent, they included shares of British Telecomm and also MCI Communications.  Although MCI was "apparently" an American company, it was 20% owned by BT.  As part of the negotiations for the buyout of MCI by the now former WorldComm, there was a dispute as to whether MCI's major investments in capital projects were to be "counted" as values contributed and as to whether payments to BT's fraudulent freeloading former empees was to be "counted" as values.  With the subservient royalist attitudes of far too many polytackyuns in Worsingdone, the capital projects paid for by MCI were discarded from the valuation procedures and the payments to freeloading Britishers was included.  WCOM itself eventually went through bunko rapecy wiping out its stuckholders.
      Far worse than undue influence by criminal scammers from the Untied Queendumb was the overt international criminal expropriation arranged by the sonofaBush's criminal crony Tony Blair.  An entire slew of American companies in the electric generating business had been invited to purchase dysfunctional British electric generating facilities.  Paid outrageous high prices for those facilities and were crippled by British "laws" from implementing any of the changes needed to make the facilities functional so that ultimately virtually the entire investment was made nearly worthless.  But when Tony Blair became the then "new face" Prime Minister of the millenial criminal thugocratic monarchy of the Untied Queendumb, he created an "excess profits tax" (British euphemism for criminal expropriation) to steal Five Billion Pounds Sterling from the American stockholders of the American companies which only a few years before had been invited to buy those dysfunctional electric generating facilities.  That criminal expropriation was in addition to the massive losses inflicted by enforcement of British sabotaging "laws" against the American companies and stockholders. There never were any "profits" of any kind to be taxed, only international criminal expropriation.  But the British in general are so fundamentally absurd in their use of "English" that they refer to a reduction in freeloading fraud payments of tax money to comparatively wealthy Britishers as if it were a "bedroom tax" (if you had "too many" bedrooms, you got less freeloading fraud payments).
      Had a brand new addition to my list of reasons to avoid the Untied Queendumb in 2016.  An American company in which I bought a full two bits worth at the end of December 2015 was "showing" an excessive but not egregiously barring 52.0% debt load in relation to tangible capitalization.  The problem was that they had borrowed a chunk of that debt load from an Australian (euphemism for Untied Queendumb since Her Mud Jesty the Queen *appoints* their entire Stupor Ream Curt and thereby has absolute control of that YGBK "independent" nation) criminal gang which not only has the typical British orientation to criminal expropriation of American property wherever held but also a particularly Australian involvement in destroying the "competition" for the Aussie mining industry.  So with my company's remaining Net Tangible Equity of $7.07/sh at their latest reporting date of 150930, the criminal "lenders" from Australia foreclosed on their "loans" and ran my company into bunko rapecy where I got nothing whatever out of the deal (other than the few pennies per share, nearly total loss, when I sold my shares on Friday February 5, 2016).
      UNCURED "NO TELL" FILINGS.  Doesn't matter what the "explanation" for failure to file the required financial reports with the SEC might be.  When you see such things as a Form *NT*-10Q or *NT*-10K near the top of the listings of available reports for review, it means that the company ain't gonna tell you what their current financial situation actually is.  Until that "NO TELL" status has been satisfactorily cured with a detailed *current* filing, which you are able to evaluate in full for all relevant details, the stock must be set aside as "LONGS EXCLUDED due to NO TELL FILINGS not cured as of YYMMDD" where the date shown is the date on which you looked and found the "NT" forms.
      DEBT INSTRUMENTS WITH TICKERS.  From time to time you're going to see an ultra strange nearly flat pricing history for what you thought was a stock, when you do the Pricing Analysis of Lesson 3.  Yahoo is defective in that it won't reveal the proper name of the security behind the ticker symbol.  Yahoo shows only the name of the company issuing those phony debt instruments "as if" that's what you might be buying into.  So what you have to do when you run into that ultra strange nearly flat pricing is to enter the ticker symbol followed by the word "stock", e.g. "AEH stock" into your Google search engine and look at the list of references that Google provides for you.  Typically you will find an entry from the MarketWatch web site that you should click on to get the full descriptive NAME of the actual security which is traded under that ticker symbol.  There may be a few others that provide a similarly good descriptive name for you.  It may also work to go to that MarketWatch web site itself since their search engine has been improved recently to respond correctly to symbol searches.  Incidentally, the companies issuing those "bonds" are typically de facto bankrupt debt drunk scam companies anyway, so even if the "bonds" were paying a reasonable rate of return they likely would be insecure holdings that you couldn't count on even for eventual return of the principal amount.

      ACTIVE FELONS AGAINST AMERICA.  On the surface, this may sound like "socially responsible investing" but it's really a whole lot more practical.  There are two industries which these days actively engage in felony abrogation of Article IV of the US Constitution Amendments which states (there's also the airline industry which engages in illegal searches via homosexual molestation of all wannabe passengers):
      >  The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures,
      >  shall not be violated; and no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly
      >  describing the place to be searched and the persons or things to be seized.
Blaming the Frauderal Reserve Bored and the inSecurities & Exchange Commission for the felony abrogations may be the top level goofermint agencies responsible for the illegal seizures.  But looking closer at that pair of abrogative goofermint agencies, it is clear that the FRB is outright *owned* by the former banking now bunko industry and that the SEC, since the days described in my article "The Crash of 1987" when the momentarily responsible SEC Chairman Arthur Levitt "attempted" to enforce the law against criminal manipulation, has been compelled by the feloniously corrupt legis critters in Worsingdone District of Corruption to be nothing but a mouthpiece for the worst frauds and thieves of the "securities" industry.  I don't recall the exact date when the FRB reorganized the banking industry under His British Lordship the criminal mastermind Greedspan so that Electronic Funds Transfer, Automated Clearing House, Point of Sale Terminals, and the later introduced "Check21" forgery facilitating system became nothing but felony theft tools by which criminal gangs could vacate financial accounts at whim devoid of authorization of any kind from the owners of the funds stolen.  I do recall it was October 2007 when the SEC authorized the felony illegal seizure of all stocks into the criminally slopperated "computer" systems of the "Depositary Trust Company" so that no human could ever again obtain POSSESSION of their own property but only members of the fraud and theft industry could (and even they have only electronic swizzles on "computer" systems and not actual stocks).
      Whatever the precise history of the felony illegal seizures of American property by the "banking" and "securities" industries, it has become a hard core reality and the companies involved, even if they play Hitler's Generals' pretense of "oh we were only doing what we were ordered to do" (which was rejected as an excuse by the Nuremberg Tribunals after World War II), are in fact responsible for their felony abrogations of Article IV.  As it happens, both industries typically come up with DEBT LOAD EGREGIOUS also, the bunkos because of their "creation" of money by electronic swizzling, the broke makers because of their "financing" of other criminal slopperations against America and internationally.  Many also come up with GREENMAIL PAYMENTS EGREGIOUS and DEFICIT TANGIBLE EQUITY because of their felony thefts of the ratable property of continuing stuckholders.  But the business description obtained for each such company when completing the Lesson 1 information gathering clearly identifies them as being bunkos or broke makers and there is little purpose in going through the unusually messy and obfuscatory exercises of Lesson 2 to conclude "LONGS EXCLUDED due to Felony Abrogations of Article IV of the US Constitution Amendments".
      I have a couple of remnants of such things in my own portfolio which are "too small to futz with" resulting from purchases in the industries prior to the onset of the felony abrogations.  For them and quite a few others I actually have done the full detailed analyses, but it is basically a waste of time better spent on searching for qualified companies.  Incidentally, the word "LONGS" in the exclusion phrase does not refer to anybody's family name :).  It is a technical term for being "long" of shares of stock, owning some, as distinct from being "short" of shares of stock, borrowing them from some owner so as to sell at comparatively high prices in hopes of repurchasing at lower prices later while being subjected to compulsory force outs from the "position" whenever the owner from whom the shares were borrowed might want them back or whenever criminal manipulators escalate the price per share to such an extent as to wipe out your "equity" in the "margin" account required to take a "short" position in the first place.

      NO PROFILE INFORMATION ON YAHOO.  Quite a lot of these are actually good securities that you can likely identify by the same means that you used to find out the real name of the Debt Instruments With Tickers. Others are closed end mutual funds of various kinds which were going to be covered in Lessons 6, 7, and 8.  Some are companies which have been bought out or merged or reorganized which is indicated by no current price information and a label next to the name of the company at the top of each page on Yahoo which says that its last trade was many days prior to the current date.  With the goners, you can quickly verify that they no longer exist on the SEC web site which will show Form 25-NSE (delisting) or Form 15-12? (Securities Registration Termination) typically along with a plethora of other weird forms of no particular consequence.  For my note files, I typically pursue the details of *why and how* they became goners and then reclassify them into my "delisteds" directory.
      Okles, that's the group (that I could think of off the top of my head) of very strange generally uninvestable things for which ticker symbols and some semblance of "markets" are provided.  In fact I generally complete what I can gather from the Yahoo site in relation to address, business description, Major Holders, and the Pricing Analysis of Lesson 3.  But that's it.  Then I annotate the top line as "*LONGS EXCLUDED due to" whichever of the things applies and set the Note File aside so that it's always there if ever the industries involved change in a positive direction (unlikely but "could" happen) or for some other reason I want to go back to look at the info that I got together.
      Since your precious accumulation of savings could be endangered if you *didn't* know about these exceptions, most of which no amount of analysis will cure because the "companies" involved are inherently fraudulent, deceptive, and manipulative, I wanted to make sure that you knew about them.
    Bob Grumbine    :-)##               Onward to Lesson 6               back to Bob Grumbine's Central Blogging Site