Attention, those of you who own Western Digital Corporation (WDC): WDC has completed a spinoff of a new company, SanDisk Corporation (SNDK). As part of the spin-off, holders of WDC stock will receive one share of SNDK for every three shares of WDC owned on the date of record, February 12th, 2025.
If you are an owner of WDC and you received shares of SNDK as a result of this spin-off, we are recommending that you sell the shares of SNDK and use the proceeds to reduce the cost basis of WDC.
To adjust your WDC holdings, please be sure to use the following steps:
CoPilot Clients:
1) Take the net amount for the sale of the SNDK shares, and divide it by the total number of shares that you currently own in WDC; this will give you the cost basis adjustment that you will need for WDC. For example, if you receive $1,000 in net proceeds, and you own 500 shares, you would take $1,000/500 for a cost basis adjustment of $2 per share.
2) Take the cost basis adjustment figure, and subtract it from the price paid for each of your outstanding bundles of shares on the position. For example, if you had a bundle of shares that was purchased for $40 and a cost basis adjustment of $2, you would subtract $2 from $40 to arrive at a new price paid of $38.
3) After you have completed adjusting each bundle of shares, you will
update your band rule worksheets to reflect the adjusted prices.
4) Update your Allocated Cash based off the new adjusted Initial
Purchase Price. Following this, you may resume regular trading of the
position.
AutoPilot Clients: Please sell your shares of SNDK at your first opportunity. Once the shares are sold, please contact us, and we will adjust WDC for you.
After we adjust your WDC position, you will be able to place your normal trades on the position. Keep in mind, we can’t adjust the position until after you sell your shares of SNDK.
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