01/17/2020 – Avon Products, Inc. (AVP)

  by Robert Brauer

Attention, those of you who own Avon Products, Inc. (AVP): AVP has merged with Natura & Co. Holding S.A. (NTCO). The merger includes a trade of 0.3 shares of NTCO for every 1 share of AVP previously owned. All outstanding shares of AVP have been replaced with shares of NTCO, and all outstanding AVP options have been replaced with corresponding NTCO options.

Lattco users will need to update your worksheets to reflect this change at your earliest convenience. Lattco PRO/AutoPilot Users: Your records have been updated in your accounts, and the symbol change should be apparent the next time you update activity.

As a result of this action, some alterations will also need to be made to your Snider Investment Method worksheets to reflect the lower number of shares received for NTCO in exchange for the shares of AVP.

Lattco PRO & Lattco AutoPilot clients: the adjustments have been made for you and should be reflected in your account by next Trade Day.

We’re here to help! If you have a position in NTCO, here is a link to the 3-for-10 split document that will tell you step-by-step what to do. Please contact us at  1-888-676-4337 or support@snideradvisors.com if you have any questions about your NTCO position.

NTCO is in a frustrating position as it has declined significantly since we initially purchased shares.  In most cases, it has been and will remain in winter until the price appreciates.  The reverse split may create additional difficulty in implementing the standard Snider Method.  At this time we are not recommending clients sell the shares.  If you reach a point where you can sell calls on your shares of NTCO or the share price is similar to your last purchase price, please contact us.  We will evaluate the position together to decide if transmogrification is the appropriate course to take.

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