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I owned Altria in real life, and MO shares of Altria (NYSE: MO) in CAPs. Recently MO gave up Kraft, at 0.7 shares of KFT for each MO share, which at the time MO was about $85.

Now MO is about $70, KFT is about $32
so I have 70 + .7(32) = $92, which is a nice gainer of about 8% but CAPs has me a looser because MO is at $70.

What to do?



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No. of Recommendations: 3
HOGridin,
CAPS treats spinoffs like large dividends; all the open picks in MO had their cost basis adjusted by $21, which is why you show a purchase price of $66 on a day when MO didn't trade below $88. CAPS didn't automatically pick KFT for you, though, so the gains that KFT has made since the spinoff are not counted in your MO pick.
Hope that helps,
Chris
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have caps post both stocks at the date you owned them before the MO deal happened. That should inprove your rating put again stock buy outs are very hard to rate. Like if say I owned a drug stock that was brought out by indiana based LLY that would make me rich yes but that other stock outside of LLY lily would be almost worthless. Same thing. Stock prices are affected by buy outs.
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