With one week to go, what is your guess on how RemainCo share price performance come April1? Let's guess.
11 replies (most recent on top)
On April 1, SOLV closed at $69.10 and MMM closed at $94.02.
On Thu 03-28-2024, SOLV/WI closed at $69.55 and MMM/WI closed at $87.83. Markets are closed Fri, so post-split trading should begin in that range on Mon 04-01-2024.
At 16:00 EST, SOLV/WI closed at $75.00 and MMM/WI was $85.55.
SOLV/WI $78
At 16:00 EST, SOLV/WI was at $80.00 and MMM/WI was at $84.67.
MMM/WI and SOLV/WI started trading today. MMM/WI is $80 at the moment while SOLV/WI is trading at $93.76.
Do you have to hold SOLV stock for 2 years after the split for capital gain tax reduction?
My take, is MMM is worth no more than $70/share post spin in the short term.
Long term the stock is a short-sell all the way to eventual bankruptcy.
Showing my short term work:
- MMM Market Cap at last Close = $59B
- SOLV is in my view will end up with a market cap around $25B at spin
- MMM will hold 20% of SOLV = $25B * 0.2 = $5B
- MMM Market Cap post spin = 59B- 25B +5B = $39B
- MMM price at last Close = $106
- MMM post spin = $106 * (39B / 59B) = $70
My long term work is shown on my other posts.
$1.00 Bob …
$35.00
$80-$85/share. MMM market cap was approximately $58B on March 18. SOLV is worth about 25% of MMM => $58B x 0.25 ~ $14.5B. SOLV share floated is 174M => $14.5B/174M ~ $83. 1 SOLV share for every four MMM shares => $83/4 => MMM (parentco) share price will be reduced by ~$21 on April 1 => $107 - $21 = approximately $86/share