Current Price: $148.12
Offer Price: $158.49
Upside: 7% or $1000 (for odd-lots)
Expiration Date: August 31
split-off
DuPont de Nemours (DD) – Split-Off – $400 Upside
Current Price: $77.88
Offer Price: $81.89
Upside: $400 (for 99 shares)
Expiration Date: 29th January
Analysis of Split-off Trading Strategies
Split-Offs proved to be very lucrative
CBS Corp (CBS) – Split Off transaction – $470 opportunity
Current Price –CBS $58.45, ETM $11.20
Offer Price – $1.08 stock of ETM for $1 stock of CBS (subject to upper limit of 5.7466 ETM shares per share of CBS)
Upside – 8% or $470 for Odd Lot holders
Expiration date – November 16, 2017
This is a standard split-off transaction of which I have already posted quite a few. The most recent ones were PG/COTY and LMT/LDOS split-offs. CBS also had another split-off back in 2014. I recommend reading through those and examining share price behavior during and after the tender to familiarize yourselves with risks involved in this kind of transaction.
Baxter International (BAX) – Split-off Transaction – $335 upside (update)
A quick update
Exchange rate for BAX/BXLT split off transaction (see here for further info) has been determined at 1.1591. To lock in profit from this transaction one needs to buy 99 BAX, short sell 115 BXLT and then tender BAX shares till tomorrow (18th of May).
Baxter International (BAX) – Split-off Transaction – $320 upside
Current Price – BAX $43.32, BXLT $41.38;
Offer Price – $1.0752 stock of BXLT for $1 stock of BAX (subject to upper limit of 1.4026 BXLT shares per share of BAX);
Upside – 7.5% or $320 for Odd Lot holders;
Expiration date – May 18, 2016;
General Electric (GE) – Split-off transaction – $216 expected return (potential for $600 return)
Current Price – GE $29.03, SYF $31.32;
Offer Price – $1.0753 stock of SYF for $1 stock of GE (subject to upper limit of 1.1308 SYF shares per share of GE);
Upside – 7.5% or $216 for Odd Lot holders (if price differential increases towards upper limit – as happened with other recent split-off transactions – the return will be c. $600);
Expiration date – November 16, 2015;
Dow Chemical (DOW) – Split Off Transaction – $460 expected return
Current Price – DOW $42.37, OLN $18.49;
Offer Price – $1.11 stock of OLN for $1 stock of DOW (subject to upper limit of 2.56 OLN shares per share of DOW);
Upside – 11% or $460 for Odd Lot holders;
Expiration date – October 1, 2015;
Danaher (DHR) – Split off Transaction – $635 upside
Danaher has updated the split off offer by increasing the upper limit and the situation became profitable one more time.
Current Price – DHR $85.44, NTCT $38.42
Offer Price – $107.53 stock of NTCT for $100 stock of DHR (subject to upper limit)
Upside – 7.5% or $636 for Odd Lot holders
Expiration date – July 9, 2015
Danaher (DHR) – Split Off Transaction – $450 upside
Current Price – DHR $87.26, NTCT $41.27
Offer Price – $107.53 stock of NTCT for $100 stock of DHR (subject to upper limit)
Upside – 5.3% or $450 for Odd Lot holders
Expiration date – July 8, 2015