How much will DELL's stock price drop , when the spin off of the .44 shares of VMW are are distributed? Thanks for a reply.
e
I have Dell 100 call options expiration Jan 22.How will that be handled after the disbursement of the dividend and the 0.44 share WM software per Dell share?Anybody have any ideas?
J
Very nice full page story in Barron's yesterday
C
Looks like Oct 29th is the VMware distribution date for all Dell Class C shareholders
J
Why would anyone sell today, when you'll receive a $50/share door prize next Friday?
Y
how can you go wrong....currently Below Fair Value: DELL ($108.65) is trading below our estimate fair value ($185.39)....and Below Fair Value: VMW ($157.38) is trading below our estimate of fair value ($277.56)...
Y
Dell reached an all time high at 114.66
n
If i buy dell stock now. May i get the 0.44 shares vmw later ?
Y
Dell reached an all time high at 113.09
J
News forthcoming:
1. There will be two dates announced. One is the date of record; the second is the close date. 2. The two dates will be close together. 3. If you own 100 Dell shares on the 'Date of Record', you will receive 44 VMW shares. 4. Using today's VMX price, each Dell share will be worth an additional $65. The ballpark math on that is $148ish x .44 = $65ish. 5. Using today's Dell price of $103ish, you stand to make a 60% gain. 6. The date of record is expected to be Nov 2nd with a close date of Nov 5th. 7. Starting November 8, VMWare will be on it's own. It is a fantastic product.
New SEC filing: 1. new $2B stock repurchase 2. date of special dividend is (probably) Nov 1st 3. special dividend is fixed at $11.5B (that's the lower end of the range given on Apr 14th)
Hopefully, (1) drives $VMW higher short term, similar to the effect of stock repurchase announcement on $DELL a couple of weeks back (Sep 23rd IIRC?). Also, the early date in (2) should put pressure on shorts. I believe they will have to pay a huge dividend for the stocks borrowed. (Can someone confirm?). Yahoo indicates there was a big jump in shorts: shorts are now 20.21% of float, which is up 18.5% (from Aug 13 to Sep 15). That's probably related to the unusual higher amount of sells in early Sep. Clearly, paying less dividend is good for $VMW, hence (3) is better than the $12B estimate from April.
Obviously, none of this is any official financial advice. Do your own research. Etc etc. But IMHO, short term looks great. Hold your fingers crossed.
When I hold, this thing went either stagnant or down.
J
I know we get .44 shares of VMW. Do we also get a cash dividend? Thanks
J
TAX FREE! The last statement is an important one.
ROUND ROCK, Texas, Oct. 19, 2021 /PRNewswire/ -- The Dell Technologies (NYSE: DELL) board of directors has approved distribution of a special stock dividend to Dell Technologies stockholders of all its shares of Class A and Class B common stock of VMware, Inc. This represents approximately 81% of the outstanding shares of VMware common stock. Each share of VMware Class B common stock will be converted into one share of VMware Class A common stock in connection with the distribution and prior to the receipt by Dell Technologies stockholders of such shares.
The distribution of shares will be made to all Dell Technologies shareholders of record as of 5:00 p.m. ET on October 29, 2021 (the "record date"). The distribution will take place in the form of a pro rata common stock dividend to each Dell Technologies shareholder as of the record date. Dell Technologies' spin-off of VMware is expected to be completed on November 1, 2021 (the "distribution date"), subject to certain conditions.
The final distribution ratio will be determined and announced on the record date. It will be calculated by dividing the shares of VMware common stock (or basic shares outstanding) to be distributed by the number of shares of Dell Technologies common stock (or basic shares) outstanding on the record date. Dell Technologies shareholders would receive approximately 0.44 shares of VMware for each share of Dell Technologies that they hold, based on shares outstanding today.
No fractional shares of VMware common stock will be distributed. Instead, Dell Technologies shareholders will receive cash in lieu of any fraction of a share of VMware common stock that they otherwise would have received. The distribution is generally intended to qualify as tax free to Dell Technologies stockholders for U.S. federal income tax purposes.
Y
Dell reached an all time high at 109.10
J
Mario....news coming
J
Here is the straight inside scoop from the top of the totem pole:
Whether you get VMware shares from your ownership in Dell will be determined by the record date. The record and close dates have yet to be announced. The record date should be relatively close to the timing of the close, and the close timing should be early November.
1. There will be two dates announced. One is the date of record; the second is the close date.
2. The two dates will be close together.
3. If you own 100 Dell shares on the 'Date of Record', you will receive 44 VMW shares.
4. Using today's VMX price, each Dell share will be worth an additional $65. The ballpark math on that is $148ish x .44 = $65ish.
5. Using today's Dell price of $103ish, you stand to make a 60% gain.
6. The date of record is expected to be Nov 2nd with a close date of Nov 5th.
7. Starting November 8, VMWare will be on it's own. It is a fantastic product.
1. new $2B stock repurchase
2. date of special dividend is (probably) Nov 1st
3. special dividend is fixed at $11.5B (that's the lower end of the range given on Apr 14th)
Hopefully, (1) drives $VMW higher short term, similar to the effect of stock repurchase announcement on $DELL a couple of weeks back (Sep 23rd IIRC?).
Also, the early date in (2) should put pressure on shorts. I believe they will have to pay a huge dividend for the stocks borrowed. (Can someone confirm?).
Yahoo indicates there was a big jump in shorts: shorts are now 20.21% of float, which is up 18.5% (from Aug 13 to Sep 15). That's probably related to the unusual higher amount of sells in early Sep.
Clearly, paying less dividend is good for $VMW, hence (3) is better than the $12B estimate from April.
Obviously, none of this is any official financial advice. Do your own research. Etc etc. But IMHO, short term looks great. Hold your fingers crossed.
Ref: https://www.sec.gov/ix?doc=/Archives/edgar/data/0001124610/000112461021000056/vmw-20211007.htm
Thanks
ROUND ROCK, Texas, Oct. 19, 2021 /PRNewswire/ -- The Dell Technologies (NYSE: DELL) board of directors has approved distribution of a special stock dividend to Dell Technologies stockholders of all its shares of Class A and Class B common stock of VMware, Inc. This represents approximately 81% of the outstanding shares of VMware common stock. Each share of VMware Class B common stock will be converted into one share of VMware Class A common stock in connection with the distribution and prior to the receipt by Dell Technologies stockholders of such shares.
The distribution of shares will be made to all Dell Technologies shareholders of record as of 5:00 p.m. ET on October 29, 2021 (the "record date"). The distribution will take place in the form of a pro rata common stock dividend to each Dell Technologies shareholder as of the record date. Dell Technologies' spin-off of VMware is expected to be completed on November 1, 2021 (the "distribution date"), subject to certain conditions.
The final distribution ratio will be determined and announced on the record date. It will be calculated by dividing the shares of VMware common stock (or basic shares outstanding) to be distributed by the number of shares of Dell Technologies common stock (or basic shares) outstanding on the record date. Dell Technologies shareholders would receive approximately 0.44 shares of VMware for each share of Dell Technologies that they hold, based on shares outstanding today.
No fractional shares of VMware common stock will be distributed. Instead, Dell Technologies shareholders will receive cash in lieu of any fraction of a share of VMware common stock that they otherwise would have received. The distribution is generally intended to qualify as tax free to Dell Technologies stockholders for U.S. federal income tax purposes.
Whether you get VMware shares from your ownership in Dell will be determined by the record date. The record and close dates have yet to be announced. The record date should be relatively close to the timing of the close, and the close timing should be early November.
Easy peasy...