DI Watch List - Part 1 of 2: July 07, 2025
Watch List warnings improved, 29 companies being removed
You need to click on the printable PDF below to access today’s report.
DI Watch List, Part 1 of 2: 29 Companies Being Removed.
Part 2, our standard Watch List update, will come out tomorrow night.
The standard for Watch List inclusion is now tighter.
Last week I wrote to let you know that we’ve improved our Watch List warnings. This was after a month-long study of 10 years of our data.
Here’s your TLDR –
In the past, any company with undisclosed SEC investigative activity that was recently confirmed as active and ongoing was eligible for inclusion on the Watch List. Going forward, that’s not enough.
Starting with this, the July Watch List update, a company will only appear on the DI Watch List if we believe the ongoing and undisclosed SEC investigative activity we find directly pertains to its conduct, transactions, and/or disclosures.
We have to be convinced that the investigative activity is centered on the company itself. That’s long been our goal, only now we think we can better execute on it.
After close review, 29 companies of the 119 appearing on our June Watch List update no longer meet our higher standard. They’re coming off the list here. Again, the standard Watch List update will come out tomorrow.
You’ll also note we changed the Watch List format, to deliver information you need faster.
Note: You have to click on the PDF (above) to see the 29 companies coming off the Watch List as well as our new format …
What Companies Are No Longer Eligible For Inclusion On the DI Watch List?
Our review surfaced several scenarios where enforcement proceedings remain active and ongoing, yet available indicators suggest the company is no longer the central focus. Examples include –
A company where SEC enforcement proceedings might involve former executives, outside firms, or other third parties related to the company.
Companies that appear to only have post-investigation compliance and/or reporting obligations.
A company included in a broader inquiry that remains ongoing, but the company itself is no longer directly involved. Examples: Cyber intrusions; whistleblower protection rules; and, off-channel communications by financial professionals.
Today’s report is your new DI Watch List format, starting with the 29 companies coming off the list.
If you’re a professional interested in learning more about our all-access service level, feel free to email or call me. No matter your service level, my goal is to help you make money and, above all, avoid losses.
Please tell others. You can even forward this report to whoever you like. As always, I thank you for your support. - John
John P. Gavin, CFA, NACD.DC
When we alert you to existence of an undisclosed SEC probe, that means we filed a Freedom of Information Act (FOIA) request with the United States Securities and Exchange Commission (SEC) on the company in question and have a response, in black-and-white, on government letterhead that supports our statement. The only thing we know at this time is that the investigation(s) somehow pertains to the conduct, transactions, and/or disclosures of the companies referenced.