Attention to those of you who own Canadian Natural Resources Limited (CNQ): CNQ has completed the distribution of shares of its announced spin-off, PrairieSky Royalty Ltd. Each owner of CNQ has been credited with 2 shares of PrairieSky Royalty Ltd for every 100 shares owned of CNQ.
No action will be need to be taken with regards to CNQ, and you should continue to apply the Snider Investment Method tenets to the position going forward. However, it will be necessary for you to divest yourself of the shares of PrairieSky Royalty Ltd, and to record the proceeds in your Stake. Since the proceeds will be a relatively small amount, we will treat the money as a dividend rather than adjusting our prior CNQ purchases.
To complete this, please enact the following steps (please undertake these transactions AFTER expiration on Friday, June 17th):
TradeKing clients will need to wait at least 6/27/2016 to sell the PrairieSky Royalty Ltd (P038658) shares. At this time, TradeKing has not officially received the shares.
1) At your brokerage account, enter in an order form to sell all of your received shares of PrairieSky Royalty Ltd(Toronto Stock Exchange) at the market price. For those of you who have accounts at TradeKing, you should be able to enter a standard stock order form to sell the shares.
2) Once the order closes, please be sure to record the net amount that you receive from the transaction, less any commission charges.
3) On the current month’s entry of your Stake Worksheet, enter the net amount received as a dividend payment, and calculate your new total Stake.
Lattco PRO / Lattco AutoPilot Users: After you have sold your shares of PrairieSky Royalty Ltd, update the activity in your Lattco account, and then contact us to let us know that these steps have been completed. We will need to make adjustments to your account’s downloaded activity to register the proceeds of the sale as a dividend payment.
Lattco AutoPilot users will need to enter the order manually within their TradeKing accounts; the trading screens of Lattco AutoPilot do not grant us the ability to enter this type of order form in within the system.
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.
