Attention, those of you who own Chico’s FAS, Inc. (CHS): CHS has been acquired by Sycamore Partners. The acquisition includes a buyout of $7.60 per share for all outstanding shares of CHS. The transaction was completed on 1/8/2024; on that date, your shares of CHS were removed from your account and you will have received payment in the amount of $7.60 per share for them (e.g. a client who owned 1000 shares of CHS will have received a payment of $7,600 on that date).
Because of this acquisition, you should transmogrify the cost basis of CHS into a new position on Trade Day. We have taken the steps of adjusting the CHS positions owned by Lattco PRO and AutoPilot clients to close them; this will likely have the affect of creating a large loss on both the Stake worksheet and your Performance table for January. These losses will be built into a different stock once you have successfully transmogrified the position. Also, the losses will no longer appear on the performance charts once transmogrification is complete.
We’re here to help! Here is a link to the Transmogrification document that will tell you step-by-step what to do.
Lattco PRO clients: Please use this link to access the transmogrification document for your accounts. Also, please give us a call after you have purchased shares for your new position and before you sell your options; we will need to make some adjustments to your account to properly reflect the transmogrification.
Lattco AutoPilot clients: At this time, trading screens for Transmogrification are not included in the AutoPilot system. You will need to log into TradeStation to place two orders to complete the transmogrification process:
- Buy the same amount of shares for your new stock that you previously owned in CHS.
- Sell to Open a put at the top of the lower band to replace the purchase for the current month if you don’t own 10x your Level
Once this is complete please notify us and we will adjust your AutoPilot account so that it can suggest the appropriate call option orders.
If you have any questions, please don’t hesitate to contact us at support@snideradvisors.com or 1-888-6-SNIDER. We’ll be happy to walk you through the process.
