Author Topic: Stock spin off in general, Baxter specifically  (Read 1119 times)

justchristine

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Stock spin off in general, Baxter specifically
« on: July 06, 2015, 12:47:57 PM »
For those of you that invest in individual stocks, have you gone through a stock spin off with something you owned?  If so, how long did it take to completely shake out?  I have some of my fun money invested in Baxter (BAX).  They just spun off part of their company into Baxalta (BXLT).  From what I read, it was my understanding that BAX shareholders would get one share of BXLT for every share of BAX that they owned on 6/17.  These shares would be issued on July 1.  I bought BAX in 2 lots on 3/17/15 and 6/16/15.  I was just checking my balances after the holiday weekend and noticed a $1700 loss in my tracking spreadsheet.  So I logged into my account to see what was going on. I saw that the BAX price was lower accounting for the spinoff (which I expected) but I don't have any of the BXLT shares.  I know there was a holiday weekend in there, but should it really take 6 days for the BXLT shares to show in my account? Do I need to contact my brokerage about this or just sit tight for a bit. 

Financial.Velociraptor

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Re: Stock spin off in general, Baxter specifically
« Reply #1 on: July 06, 2015, 12:58:52 PM »
The new shares should be there.  Your broker probably has a processing delay of some type.  I'd contact them.  In most cases, you can expect the "new" company from the spinoff to tank for several months after the distribution.  Lots of institutional investors with shares in the parent find the new shares they own are too small to meet their holding requirements resulting in mass selling.  It takes time for the new company to attract critical mass of small cap investors and recover.


justchristine

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Re: Stock spin off in general, Baxter specifically
« Reply #2 on: July 06, 2015, 05:52:16 PM »
Well, I contacted my brokerage and they said there was no specific time table when everything settles and they have to wait for Baxter to give them information.  Basically they said to keep waiting.