Link here to SeekingAlpha.com.
One share of Phillips 66 (PSX) for two shares of COP.
COP: 4.5% dividend, likely.
PSX: 2.2% dividend, likely.
Annual dividend increases from each company, again likely.
Distribution will occur Monday, April 30, 2012.
The Phillips 66 shares are currently trading at $35.68. The
post-spinoff Conoco is currently trading at $54.52. The combined Conoco
is trading at $72.33. Let's say you owned 100 shares of Conoco, worth
$7,233. Your 50 shares of Phillips 66 would be worth $1,784. Your post
spinoff Conoco shares would be worth $5,452. That equals $7,236 in
total, implying that the "when issued" market is trading at a
negligible premium right now.
If this page is turned upside down, Phillips is part of the 99.
ReplyDeleteAnon 1
As in: http://www.youtube.com/watch?v=cFFIzWHD3Xg
DeleteWas shocked this morning to find my 200 shares COP down $2300. Didn't know about the spinoff. But the PSX doesn't show up in the (Scottrade) account. Where is it?
DeleteThey will show up -- give it time. Right now they are trading "when issued." I think I read somewhere that they will be issued May 16, but maybe I'm dreaming.
DeleteScottrade works on a "not until received" basis and they got the shares today, May 4. Will maybe be posted tonight, definitely by Monday I'm told.
DeleteWas the spinoff COP/PSX RATIO 1 for 1 or .5 for one. The above article is confusing
ReplyDeleteYou are correct: one share of PSX for every two shares of COP. I was wrong. That's why I always try to include the link to the original source. I'm not sure how I messed up on this. In subsequent posts, I had it right. I'm surprised no one alerted me to this major mistake until now.
Delete