Attention, those of you who own HP Inc. formerly Hewlett-Packard Company (HPQ): HP Inc. has undergone a corporate restructuring, and has split itself into two separate companies. You will continue to own the same number of shares of HPQ as you did before; however, you will also now own an equal number of shares of Hewlett Packard Enterprise Company (HPE). Furthermore, the price for your shares of HPE and HPQ will be roughly half of the total price you previously had with HPQ.
Because of this restructuring, you should sell your shares of HPQ and HPE as soon as possible, and Transmogrify if necessary. If you are able to sell your shares above your average cost, there is no need to Transmogrify.
If you do need to transmogrify, please note that after selling your HPQ and HPE shares, you should add the gross proceeds of the two transactions together, and then divide that figure by your purchase level. This will give you the Price of Old Stock that you will need to perform your transmogrification.
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 your 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 in to TradeKing to place three orders to complete the Transmogrification process:
- Sell your existing shares (both HPQ and HPE)
- Buy the same amount of shares of your new stock as the quantity of HPQ you sold – The new stock will be approximately the cost of one HPQ and one HPE share added together
- Sell to Open a put at the top of the lower band to replace the purchase for the current month if you have not reached 10 times your purchase 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.
