Kenneth J. Gruneisen

The Magic Formula's Top 20 Price/Book Ratio Stocks

Cocerning TSCM...

For years, TheStreet's proprietary index was part of the daily analysis among other indices including the Gold & Silver ($XAU), Bank ($BKX), Broker/Dealer ($XBD), Networking ($NWX), Semiconductor ($SOX), Integrated Oil ($XOI), Biotech ($BTK), Healthcare ($HMO), Retail ($RLX), Oil Services ($OSX). It seems somewhat ironic that they would cease calculation of an index that had allowed investors to guage the performance of the very industry which that Internet - Content company resides. They must have had some good reasons for that decision.

Rebecca Updegraph, their IR contact at thestreet.com, said the index "wasn't being utilized" and she will get back to me with more information soon. Not being utilized, huh? There was suddenly a hole in my routine reports, and when I look at sites like Yahoo Finance to see the indices' data they provide, guess what? I still see the ^DOT
finance.yahoo.com/indi... being utilized, although this is only because few seem to have noticed its abandonment.

Few headlines ever come up on any of the indexes, NONE ON THIS INDEX, IN FACT (finance.yahoo.com/q?s=... ) SO INVESTORS ARE LOST IF/WHEN they go looking! Doesn't anyone feel they have a fiduciary responsibility to help the lost investors?

I literally had to spend a fair amount of time to get this "story" while nobody else on the planet (other than an easy-to-miss announcement from Nasdaq OMX) bothered to even issue a press release on it.

CANSLIM.net, in keeping with its objective of providing superior fundamental and technical reports concerning stocks, industry groups, and the major averages most relevant for investors, has begun tracking the AMEX INTERACTIVE WEEK INTERNET Index ($IIX OR ^IIX) which is comprised of 40 stocks. This index will be analyzed in place of the recently abandoned TheStreet.com Internet Sector Index ($DOT) which contained 23-stocks.

The "Industry Group Watch" section of the CANSLIM.net After Market Update provides daily analysis on the performance of leading and lagging industry groups. It is part of a membership which includes ongoing reports designed to keep investors informed. We think that this change makes the most sense under the circumstances. I do not believe it was a component of its own proprietary index, at least not recently, but we are nonetheless intrigued as to why the folks at TheStreet.com (NASDAQ: TSCM) decided that 2009 was the year that it would quit supporting their proprietary index which began on September 30, 1998.

Further on this point, the decision to abandon their proprietary index reveals several reasons for any current TSCM shareholder to be concerned. The action may be revealing that the company's directors are under-estimating its assets, neglecting them, failing to extract sufficient value form them, and/or having trouble exploiting any apparent advantages the company may still have.