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Anyone have an idea how this works
Checking today MMI and MSI added together are a total value greater than what MOT
value is trading at. Will MOT holders on Jan 4th just make a profit if the MMI and MSI shares are still greater? The MMI and MSI shares are trading today but have not been cashed out yet, and will not till the 4th. So people are holding shares but not actual funds it seems this is going to be one crazy Jan 4th. Will there be an adjustment?
CONFIRMED
It is exactly what I thought!
Talked again with Motorola today. 3 minutes ago.
Motorola said they are updating/updated the FAQ sheet to clarify the confusion.
Buy MOT and hold through the split and you will be entitled to MMI shares!
I think that even if there are "problems" after the action is over, involving legal disputes, you will still be safe via all of your efforts to find the "truth", through calls to MOT and your broker. This was a "not normal" type of deal, as reported.
EX-Date Jan 4th Hope this helps
The ex-date is Jan 4th on MOT stock set by SEC and Nasdaq. Anyone trading shares prior to this date is also selling their due bills and is giving up the right to the dividend. Unlike other dividends which belong to the seller after the ex-date and day of record but BEFORE the payed dividend. If the stock is traded as normal the due bill will need to be attached to show that the stock is being sold without dividends (ex-dividend)and the buyer of such stock will receive none, the dividend belongs to the seller. The ex-date (x-date) for MOT is set for Jan 4th the day after the dividend (shares/split). Anyone selling their Mot stock prior to the ex-date is also selling the extra 1/8 share right to MMI. This is why everyone is being told if you sell your shares you forfeit your right to the dividend and if you want a dividend you need to own the stock Jan 3rd.
THE MOT stock traded today is NOT "ex-dividend" it is "DIVIDEND"!
In the context of corporate actions (such as dividends, issuance of rights and warrants, splits, etc.), the period during which remittances to investors are due - once stockholders of record are checked on the record date.
Investopedia explains Due Bill Period
For example, suppose that a stock is going to issue a regular quarterly dividend. The record date is the date at which the list of stockholders of record is prepared - anyone who is on record as owning the stock as of that date will receive the dividend ( NOT TRUE IN THIS CASE). The ex-date, which (USUALLY) occurs two days earlier, is the date at which the shares trade on the open market without the right to the dividend (i.e. the time at which a buyer cannot settle his purchase in time to be a holder of record for the dividend).
The period beginning at the record date and usually ending two days later (four days after the earlier ex-date) is when the identities of the holders of record are known and payment is due to them - this is the due bill period.
All is cool does not really matter.
I don't want to argue at all.
Have a Great New Years!
Cheers!
Read this part!
I know the part that you posted and yes it was true for the distribution you are correct.
Now read what I wanted you to read. Same Doc
Here it is...
Trading of Motorola Common Stock
Shares of Motorola common stock will continue to trade "regular way" on the NYSE through the period leading up to the distribution date of Jan. 4, 2011. Any holders of shares of Motorola common stock who sell Motorola shares "regular way" on or before the close of business on Jan. 3, 2011, also will be selling their right to receive shares of Motorola Mobility common stock in the distribution. Motorola Mobility common stock is expected to begin trading on a "when-issued" basis on the NYSE under the ticker symbol "MMI WI" (when-issued) on Dec. 17, 2010. On Jan. 4, 2011, Motorola Mobility will begin trading "regular way" under the symbol "MMI" and Motorola Solutions will begin trading under the symbol "MSI." Investors are encouraged to consult with their financial advisers regarding the specific implications of buying or selling Motorola common stock on or before the distribution date.
cut off was Dec 21
the ex date was Dec 17th, I believe
I'm not buying MOT
in fact......
probably won't go near it until after May now with this misinformation going around
I'm not sure.
IMO I think people will be pleasantly surprised what Motorola will accomplish by mid term next year in the smart phone market. The splitting of the company will be a big time cash adrenaline shot in the butt. Overseas the phones are kicking and they flew off the shelves, here also. That said the apple iphone to be Verizon, and competitor counterparts will be a ferocious market play. The only thing left is service and market share thats what it boils down to. The phones are really free have no profit, the service. apps, and media play is what wins the prize IMO. Motorola has made some very strategic acquisitions lately and my hats off to them their head is out of the sand. But fare warning it will be a tough road. I think steady growth for the next year, not kick butt growth but good numbers. My play is in green and thats my primary investment so far its been paying off. I won't discount MMI or MSI they both have room for growth.
I see MOT(MSI) as the longer term winner. The cell division stuff has always dragged down MOT, as a whole. It's become highly competitive, as in Razor-here today-gone tomorrow. I guess you could say because of cheap production of the products "elsewhere", they can try to compete, with such a fast changing market. So I may get rid of the MMI, unless it spikes upward. You never know. What was scary to read in your blog link, is that MSI would even think of getting involved in the video game market. I hope that was entirely rumor based. Here again, super cheap manufacturing elsewhere, might make it feasible.
I know its hard to understand, I expect a lot of rumbling on this split.
The way this was done Motorola had very little to say on how and when X-Day, Rules are Rules.
I'm guessing we will here about it on the News
Read This... Official Doc Motorola
This proves it without any doubt.
http://investor.motorola.com/releasedetail.cfm?ReleaseID=533867
-READ under "Trading of Motorola Common Stock"-
JAN 3rd cutoff for mmi shares and split
-Read Under- "Distribution of Motorola Mobility Shares to Motorola Stockholders"
The shares (due bIlls) were distributed to holders close of business day DEC 21st to the existing MOT share holders.
Good Broker you have...
Ask him this. Seeing that MMI and MSI are trading while we speak how would Motorola
and nyse be able to offer MOT (Peter and Paul one of the same)? You see its quite simple the combination of MMI and MSI
must nearly equal the MOT stock being traded on the x-day. Because MOT is a combination of both new tickers otherwise MOT could no longer be traded. Tell your Broker or Brokers to look at SEC rules on
payed dividends higher than 25% stock value. The rules are different. Also try placing an order for MOT you will notice that a Note should pop up saying Due bills attached, you don't really need to actually place the order to confirm this. The Dec 21st date really meant nothing other than the spinoff shares/dividends were distributed. Unlike an normal dividend in which the owner of the stock will receive the cash dividend after the day of record even if they sell the stock a day after.
The actual day to take this advantage is Jan 3rd X-Day Jan 4.
I have thought of just selling MOT for investing in MMI and MSI right now before the spinoff. Its a chance to take. One way better than another not sure we will see. Right now it looks like MOT is the better buy IMO.
well I read the posts there
along with a call to 3 different brokers
who also agreed with me
and in those posts on your link
some are also disagreeing
so here we are....
I'm not willing to take the risk
and on good advice, imo
if you make out like you say, then good for you as you're taking the risk
I'm still going to wait and see what happens after the dust settles
and will consider getting back in then
if I miss out....then that's how it goes
but the SEC still has to approve one part of it that was just filed
so as I've said before...good luck
Just bought a boatload!
After getting all the info I'm confident. here is the question answered on 99wallstreet.
After looking at the charts I'm thinking the best way to go. Combined today is way on the plus side and my feelings are as people find out about the confusion this stock is banging high.
link
http://www.99wallstreet.com/v2/messageboard.php?source=yahoo&tickersymbol=MOT
I think your confused...
No double dipping! I Wish LOL! I wont get twice the shares / dividends. When I sold MOT or anyone sells their MOT stock they are also selling the spinoff shares (due bills) with them also like I did. The due bills are attached to the shares. I will only get the 1 to 8 on the shares on one I own on the X-Date. In buying MOT shares right now you are also buying the due bills attached. With the shares I sold I also sold my spin off shares (due Bills) so I wont get those at all. All I did is trade shares, bought low sold high bought low no big deal. To be more clear 6000 MOT shares will be 750 MMI and 857 MSI just as before I will not get 1500 shares of MMI.
I know where they're at...
in Schaumberg
been there quite a few times.......
over the decades since they moved out there
and what you're saying is going to happen....
can't see it
that's double dipping....
we'll see is right....
*chuckle*
The Info in question...
I just spent a lengthy conversation with the Dividends legal dept at schwab and the rep from motorola was correct. Different rules apply to this Dividend/split the X-Day is set by nasdaq
and because of the dividend being greater than 25% of the value of the common stock as today the x-day will be the following business day of the actual dividend payout which is the 3rd of Jan. My understanding as told all MOT stock being sold right now comes attached with due bills. In buying back my shares I am also purchasing the due bills also. Normal rules of day of record do not apply. You should ask you Broker for an explanation yourself before making a decision. I had 6000 shares I sold on the 22nd and now I bought them back. I'm running with the idea and knowledge I gathered from motorola and Schwab Dividends legal dept. Don't take my word for it check yourself as I always do.
Cheers Happy New Year!
Just read the FAQ for the dividend/split. It does state that one must just be a holder, at the record date, and then a holder at the distribution dates, Jan 3+4. It says if one sells after the record date, then one will not be "entitled". Of course, the Q+A doesn't "entertain" the action you have taken. But you do meet the first stated criteria. It also says if one has questions about the action, one should call a MOT representative, for more specifics, which you did. It will be interesting to hear if you "get your way", without having to "battle" anyone. Please keep us informed after the actions, as I would like to possibly take advantage of that same scenario, in the future, with other "similar" deals.
Info if needed...
Motorola, Inc.
Investor Relations
1303 East Algonquin Road
Schaumburg, Illinois 60196
Tel: (847) 538-7367
Email: investors@motorola.com
Website: www.motorola.com/investor
After the separation, if you have any questions relating to Motorola
Mobility common stock, you should contact:
Motorola Mobility Holdings, Inc.
Investor Relations
600 North US Highway 45
Libertyville, Illinois 60048
Tel: (847) 523-0158
Email: mobilityinvestors@motorola.com
Website: www.motorola.com/investors
Well your wrong one one account. I did talk with the investors dept. and that is what she said to me this is a fact. On the other hand your right you have to have it documented so I also sent an email and am waiting for a reply. Even though I have the conversation recorded with her its nice to have the extra email. Ohio is a one party state so the recording will hold if need be. Yes you can call and talk and ask questions she had told me she had fielded/answered about 145 phone questions by the time I talked with her yesterday. She informed me as on the close of the market on the 21st the distribution would already been made to the broker as so to distribute after the 3rd and as long as the on record shares was recorded that distribution of shares will be delivered according to the amount of shares held on the 3rd, not more but possibly less if less standing shares were being held if some shares were sold.
We will see
thanks....glad you figured it out
because for sure...it's already been figured in
and yeppers on your comment in that previous post
it would be double dipping and that just can't be
Actually, I just thought about it, and there must be some sort of special "reserved" area of the OS of both MMI and MSI, that will allow the event to take place. That has to be the answer....
I have to agree with Trinityz on that one. If what you're saying is/was possible, then I would think that anybody could just duck out and back in, after the record date, but before the spinoff/split date, on a number of such "combo" type deals that have transpired, with other companies. This would allow one to possibly profit greatly from the rise/fall, before/after the record date, yet still be in the "picture", for the follow up action. I don't believe it is true, or at least I've never heard of it being done. Of course, that is one of my thoughts I had, about "What if I sold after the record date?"......I do see that the new tickers are viewable/tradeable. I was trying to find them days ago, using a dot before the suffix digits. Now when I tried using a hyphen, all is understood.......I'm still kind of wondering though, if these stocks are already trading, what happens on the morning of Jan 4, when MOT does the spinoff/1 for 7 split(MMI/MSI), when many billions of shares are added to the new "tickers"? Granted that the MSI stock will only receive one seventh of the "blow", but what occurs to each of them? Severe instantaneous dillution?
well first of all
have a very very very long relationship with people in the company
from before they built the place in Schaumberg
and they're not in the habit of having a conversation as just described
right now, even employees that hold shares and talk to people in the company are kinda on pins and needles...
one of my close relatives held 140,000 shares at one time and her co-workers also held a lot
and 2nd of all
I have learned NEVER to listen to what a rep from the company says
as so many times it turns out to be WRONG
and what you just described....sounds very very wrong
I just can't see anyone getting a distribution of shares for shares bought AFTER the record date
and if you sold the other shares and took a profit....
well then since you didn't hold them....divvy shares are gone there as well according to the PR because the conditions were IF AND
but what the heck....it's all up to what the SEC accepts and allows to happen
and that's what counts
so Good Luck with that
I talked with Motorola today.... Well first off... both stocks have been trading MMI-WI and MSI-WI.
Check yahoo finance for tickers MMI-WI (closed today at $28.87) MSI-WI (closed today at $37.72).
I had sold my shares the day after the day of record Dec 21st. at $9.15 and I just bought them back today at $8.96. I was told by motorola that as long as I was on record close of Dec 21 and had the same amount of shares on the day of the spin off I will get my free shares. As I figure I made some extra profit this way. It looks like the new shares of mmi and msi added together at todays prices comes in short, money wise, of what I had on the the mot shares the day after record. Well doing it this way put an extra grand in my pocket. I'm still not sure I will hold the shares now till the spinoff
if for some reason I can turn some more profit on these shares I will.
well the way this worked is what kept me from buying
too easy to end up getting stung
Yes, I did initially think, What if I sold my MOT shares right after the record date? I would then still be eligible for the spinoff of free MMI shares, in January, like a "normal" type of dividend process. But then, futher reading revealed that one must be an owner of MOT shares, at the time of spinoff, to get the free shares. So, NOT at all like a "normal" dividend. This of course forces me to just wait, as you say, until the whole process is over with. One thing I will still be keeping my eye on, afterward, is the MMI shares. Even though MOT was the "creator" of the first cellular concept long ago, I feel that the the market for such "toys", has become too competitive over the years for them to keep up, profitably. It has been the "dragdown" for MOT as a whole, for many years. I will be looking to sell the MMI shares, as soon as possible. The MSI side I will probably hold forever, as it has always been a profitable venture for MOT, especially the public safety 2-way radio division. It has always been considered the "cream of the crop", as far as quality communications equipment goes.
hehe, very 1st time I read that 1st pr about it
had the exact same thought
then your brain went to work trying to figure out how to make a buck on it
and then came back with
think I'll just wait
Thanks. What a ticker "shuffle"!
well go back and read again the press release that told us all about this
there's always some drag time until symbols start showing up as active
and honestly, I quit trying to predict when some time ago
because just when you think you have it nailed
something happens that changes it
some T isn't crossed or an I isn't dotted
Right now I'm not holding my breath as to when we'll see them active
yep.....I seem to recall in that earlier press release that we'd get an idea when we'd see it trading
like after the first of the year
the spin off hasn't fully happened yet...so no symbol to see there
and with the way this is happening....
I bet we see the symbols active after the first of year
but hey, the good news is you made a buck or two
bird in the hand don't you know
S&P will make the following changes to the S&P 500, S&P MidCap 400, and S&P SmallCap 600 Indices after the close of trading on Monday, January 3, 2011:
Motorola Mobility Holdings Inc. (NYSE: MMI) will replace Meredith Corp. (NYSE: MDP) in the S&P 500 index, Meredith will replace Cincinnati Bell Inc. (NYSE: CBB) in the S&P MidCap 400 index, and Cincinnati Bell will replace Penford Corp. (NASD: PENX) in the S&P SmallCap 600 index. S&P 500 constituent Motorola (NYSE: MOT) is spinning off Motorola Mobility Holdings to its shareholders in a transaction expected to be completed after the market close on or about that date. The Motorola stub will remain in the S&P 500 index following the spin-off. Meredith's $1.6 billion market capitalization, and Cincinnati Bell's $480 million market capitalization, make these two companies more representative of the mid cap and small cap space, respectively. Penford, with a market capitalization of less than $80 million, ranks 600th in the S&P Small Cap 600 index.
Thanks. That would explain why I can't find any info about them, besides the MOT news.
MMI/MSI Not available to public purchase just yet only institutional investing I think.
Mistake or not?... I sold today a 9.15/ share was not planning on buying back till the split. I was not sure if I wanted to play the opening day gap or not, but it could be some real big profits. I will make the call on opening day and and see if it gaps and and with what volume. I figured I would take my profits and free shares in my hand now so I could sleep easy over the Holidays. Then pop on some good technicals later. I figured really it to be in the $9.20 to 9.50 on the 21st well it didn't happen, as I see it not trying to be greedy, but from the beginning of OCT to the split 33% on my money is not bad .... thanks MOT! I'm guessing new shares "Mobility" will move real fast before pullback, $17 -$20 but I'm dreaming a little here. I say this because of the new Motorola commercials, hot PR, in the news and I'm guessing on Cramers show. This stock is still a good buy at $9.09 as closed today. But I waiting for the dust to clear a little the big MM's might start taking some off the top and cause a major pullback. So hard to play their games.
Does that mean I have the "picture" right? Also, any idea on how to "see" the action going on, with the new ticker symbols? I don't think you have answered either of my questions. I was hoping you had better knowledge of the coming events, and current situation, than me.
well also in there is my belief you already know the answer
Merry Xmas!
Sadder still, is missing the chance two+ years ago, to have averaged down again, at under 3 dollars a share.....So much for this morning's quick rise. It's settling back down now......You've made me re-read my earlier post......I thought that the spinoff, will be MMI(the cellular division). MSI will be the MOT "residual", and will go through a reverse split, and subsequent ticker change to MSI(the two-way division). MMI will be the new stock really, and IS the "spinoff". It will be a newly formed "company". Maybe I have the picture wrong, after reading the news, and prospectus that was mailed to me. Correct me please, if I'm envisioning this thing wrong. I also was asking if you new how to "see" the activity of both new tickers, since they are supposedly trading somehow, at this time, prior to the RS and spinoff. I saw that, in the latest news, since Friday.
well sadly enough I passed on picking some up
so my mind is on the up coming holiday instead of MOT
not to mention there's a stuck circular logic in your questions
and that Captain Kirk....is illogical
Nice rise so far today. I'm trying to understand why all the "buyer" frenzy, at this point. These buyers have missed the record date. Are they just buying in with hopes of a quick profit, immediately after the RS? If I understand it correctly, these buyers now, will not receive the "spinoff", MMI. Also, I saw that the new MSI/MMI tickers are supposedly trading already, with the suffix WI(when issued). When I try to find a chart for either, no such charts exist. If I remove the suffix letters, I hit upon existing other stocks for MSI and MMI. How does one observe the newly traded "stocks to be", right now?
well have to say thank you for that
and it's nice to know I'm not the only one with such a pleasant fondness for MOT
I've even got two nice speakers from my old MOT stereo system, vintage about 1970, 8 Ohm btw.....
which I found out by plugging them into my new(a few years ago) Panasonic system and promptly blew out that channel of it
so I opened up the heavy little old speakers and learned they were 8 Ohm....whoooooops
My sadness started when Panasonic bought them.....
well it was anger then actually
But they seemed to have done the company well.....
What a different world it would be if Amiga had been more aggressive in the US market
Motorola could've been the Intel of computer chips
all I know for sure right now is I'm being real cautious about getting back in with this splitting up thing
Yes, those were the days.....I still have an A2000 and two A1000 units(along with tons of hardware/software), which I haven't fired up, for say 10 years or so. But I still hang on to them, because they will be "antiques" soon, and possibly rise in value. Ah, the days of the 680X0 series processors, and a separate graphics processor, to allow true multitasking......I'm a long time MOT holder, having first bought in at $ 37.XX, then seeing it "fall", thought I would "average down"(Ha!) by buying more at $ 15.XX. Well, it continued falling from there, and was never to regain its value. Maybe now after the "split up", at least the Two-Way division will not "suffer", from the competitive cellular side losses. Sad to see that the old ticker will "retire". MOT, will only be a memory.
What's the consensus? I'm betting on pure volume this will sky up. Like I said days back the top is off the can. Pull backs are nice but so many bulls and positive surprises from Motorola make this stock a real winner its hard to trade without some serious powder. The stocks bounces nicely off the SMA you can almost bank on it. Year end extra cash in investors hands and great timing on Motorola part will go gogogreen. I'm giving IMO a plus 9.50 pre 12/21. Any thoughts anyone?
Things went better than I thought but pretty close. I stayed in the stock for this weekend only because I still see support at the present numbers. I am going to look for another gap ( Mon) and pull the plug again. I won't take the peak but should clear some profit off the top. My feelings are peak at no more than pluss .30 so I'm setting my sites for 8.85. I will try to get back in by the end of the week if possible. I'm guessing one more pullback a ways below the SMA 20. If it freezes I will jump back in. Hopefully under $8.50. Any Ideas anyone? This is all well and good if no bad news and we still have numbers Monday. Pre Market Monday will be interesting to say the least. If MM's Push this down to far then watch out. I don't think this will happen though, the top seems to be taken off and the shorts are gone. This could run in the 9-10 before the split but thats a coin toss. Also possible could come tumbling down pretty fast if some panic from taking profits happens.
MY OPINION only. Yes there is serious hidden value to buy before the split. The real question is after your free shares do you stay with both? or just keep one stock? My feelings are that the possibility of the new stock just starting out and going long will generate excellent growth so much that it will more than offset a slower if not diminishing increase in the solutions. But over all an increase in value for both through Q4 of next year. Now as to an advantage of selling one for more of another, this could create some volatility in both stocks in the 1st Q as investors make moves for position.
On the other hand wait and invest after, there will be plenty of time to purchase after the dust settles less risk put possibly less gain.
I'm new to the board, but i would love somebodys thoughts on this split. Is this a good buy for the long term? Any help would be appreciated...
2:35pm still has a chance to move up but slim, needs some volume. If it did it would be the perfect time to charge up. Technicals are volital right now but stock is oversold go greeeeeeen!
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