I suppose it's possible, but gold and the dollar will strengthen against lower oil and demand in the Euro-zone and Japan will likely be muted because of recession. It may be that 2015 will offer a great entry point in Oxy because this thing always eventually turns.
On OXY website Investor Relations, "Occidental Petroleum Corporation Guidelines for cost basis " 96.515% to OXY shares and 3.485% to CRC shares." as an example. I suspect that is what will be reported on the attachment to IRS 8937. The attachment is not posted yet.
If we have to wait until posted on EDGAR, http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000797468&owner=include&count=40&hidefilings=0 I think would be the URL. Of course this post might be deleted because it has a URL despite it being an SEC link.
Thanks to Ultimate Stock Alerts (search them online) I avoided OCCIDENTAL PETROLEUM and kept my shirt.
Now I have more money to play with next session
Good info. With the brokers now reporting the basis to the IRS, it is simpler to use the same ratio that will be used to produce that basis. Yes, you can use one of the allowed methods, but the extra work to figure out how to report that makes waiting to see what OXY posts worthwhile. I presume the broker follows the method that the company issues.
They often use the average of the highs and lows on the first day of trading to develop the number, but we cannot count on that. It would be helpful if OXY were to make the decision as to which method to use and then publish that quickly. All information needed already exists. It just takes an effort to be proactive rather than laid-back. I think the company has to file something with their chosen ratio. It would seem simple to put the numbers on the website soon, rather than waiting for the document to show up on EDGAR.
They may also be delayed if your broker is trying to calculate your "covered" cost basis in the new CRC shares per recent IRS rules.
Are you an employee? Employees, per the material sent to you, your PSA account will be updated in 1-2 days. or maybe your generic broker is slow....
I have two accounts, in which I hold OXY shares. And both of them, Fidelity and ASTT have added the CRC shares into my accounts.
OXY distributed the shares. Your broker is slow in getting them to your account. I have never had a problem with any of these distributions. My guess is your dividends are also late too.
OXY should provide info on their site for doing the allocation. However when COP spun off PSX we got .5 shares of PSX for every share of COP. In that case and others I have seen the cost basis for each was based on the closing price of the stocks the first day of trading. Right now OXY is trading at 78.50 and CRC at 7.00. $7 X 0.4 = $2.80 plus $78.50 equals $81.30. So if the stock was still one it would be $81.30. Divide $81.30 into 78.50 and you get 96.56% of the cost basis goes to OXY and the balance or 3.44% to CRC.
Each Occidental shareholder received 0.4 shares of California Resources common stock for every one share of Occidental common stock held at the close of business November 17, 2014, the record date for the distribution,
CRC cost basis is a % of your old Oxy basis.
The % is:
(CRC price * 0.4) / ((CRC price * 0.4) + OXY price)
IF you use the 11/28 closing WI prices, you get:
(8.05 * 0.4) / 79.77 (price of the still-combined company)
3.22 / 79.77
you can use today's closing prices (in which case you must add today's post-split OXY to today's closing CRC)
for a ballpark estimate, based upon the current intraday price:
(7.00 * 0.4) / ((7.00 * 0.4) + 78.56)
2.80 / 2.80 + 78.56
(of course, you'd have to recompute in about 2 hrs & 15 minutes)
you might save yourself a lot of math and wait a few days to see if the OXY website suggests a % split
I hope this helps