Attention, those of you who own Nutrisystem, Inc. (NTRI): NTRI has been acquired by Tivity Health, Inc. (TVTY). The acquisition includes a payment of $38.75 and 0.2141 shares of TVTY for every outstanding share of NTRI. Because of this acquisition, you should sell your shares of TVTY on Trade Day, and Transmogrify if necessary.
On Trade Day, you will need to take the following steps:
1) Sell all of your outstanding shares of TVTY. You will then combine the proceeds from the sale of these shares with the cash payment you also received for your NTRI shares.
2) Take the total from the previous step, and divide it by the total number of shares you previously owned of NTRI. This will help you to determine the price that NTRI was effectively sold for.
3) If the price you calculated in step #2 is lower than your average cost for NTRI, you will proceed with the transmogrification, and use the price from step #2 as your Price of Old Stock for your transmogrification search. If the price calculated in step #2 is above your average cost for NTRI, there is no need to transmogrify.
We’re here to help! Here is a link to the Transmogrification document that will tell you step-by-step what to do.
SPECIAL NOTE: Lattco PRO and Lattco AutoPilot accounts will likely display an analyzer error after downloading the activity for the removal of NTRI. If this is the case, please contact us, and we will correct the error and close out the NTRI position.
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 Ally to place three orders to complete the Transmogrification process:
- Sell your existing shares
- Buy the same amount of shares for your new stock
- 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.
