I also bought on Thursday. I believe the value of the parts is greater than the value of the whole and it seems like Columbia is fairly priced. I believe the value of Ni will be determined in part by the future dividend.
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Well, it will be interesting to see where we go from here. My biggest problem with this stock was I never bought in an IRA so there will be more problems there in the taxable account, over time. But today I bought NI in the IRA, just to see what time will bring. Anybody else buying today? BTW, price was 16.95. Funny thing, the account shows a 56,000.00 loss since it's based on yesterdays NI price.
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I am expecting some who bought NI to capture the spin off will sell in the morning after they receive their CPGX.
The distribution of CPG common stock will be executed after the close bell on the New York Stock Exchange on Jul 1, 2015. Shareholders of NiSource will receive one share of CPG common stock in exchange of one share of NiSource common stock. With this, CPG will be an independent, publicly traded company under the trading symbol CPGX, in which NiSource will not have any ownership interest.
uly 1. S&P 500 constituent NiSource Inc. (NI) is spinning off Columbia Pipeline Group in a transaction expected to be completed on that date. NiSource will remain in the S&P 500 following the distribution. How are stock holders affected? Does anyone know that is willing to share.
Basically CPGX is the incorporated general partner(no K-1!) of the mlp CPPL..Most likely with future drop downs.
Looking forward to the CPGX shares and may add additional shares down the road.
It's been a heck of a ride with NI since 2012. Low dividends over that time, but what capital appreciation.
No, CPGX will not be an MLP. The MLP, Columbia Pipeline Partners LP (CPPL), already exists and already trades (since about January). CPGX is the part of NI that owns about 46% of CPPL.
Any Tax Problems Having CPGX In A Ira Account? Won't CPGX Be A Master Limited Partnership ? Will Taxes Have To Be Paid Due To Unrelated Business Income?
Sentiment: Strong Buy
Thanks, cwn. I didn't find the info about "when issued" shares until after my first post, but it's clear now.
On Schwab, the symbols NI/WI and CPGX/WI work (not on Yahoo, though). They closed at $17.00 and $31.55, respectively, and NI closed at $48.40, very close to the sum of the when-issued shares. The when-issued shares both show zero volume for Wednesday, however. So it seems they started them at these prices on Wed, and the reason NI shares were up so much on Wed was to match the sum of the prices of the when-issued shares.
"I wonder if folks are confused, or if I am."
It would be you. Spinoffs do not use normal cash dividend dates. The ex-date for spinoffs is the first business day after the distribution date. That makes July 2 the ex-date. The company detailed that in its June 2 press release: "Any holder of NiSource common stock who sells NiSource shares "regular way" after the record date or on or before the distribution date will also be selling their right to receive shares of CPG common stock in the distribution."
This part of the press release could be confusing if you don't notice that the NI shares trading ex-distribution on June 17 will have a different trading symbol, NI-WI: "It is anticipated that NiSource shares will also trade "ex-distribution" (without the right to receive shares of CPG common stock in the distribution) beginning on or about June 17, and continuing through the distribution date, under the symbol "NI WI.""
NI-WI trades ex on June 17. NI trades ex-distribution on July 2.
"I think today is the last day to get the spi noff share, because of settlement date"
No, the last day to buy NI and qualify for the spinoff is the distribution date, July 1, as July 2 is the ex-date. The company detailed that in its June 2 press release.
I found the answer to this earlier and posted it, but Y! ate my post, I guess. Here it is again, from a FAQ page at the NI site:
What is “When Issued” trading?
A “When Issued” market is a temporary market created to allow stockholders to separately trade shares in a company and a related spinoff company prior to the distribution date. When-issued trading is expected to start on or about June 17. At that time, three stock symbols will trade from that date through the separation:
NI regular way. This is NiSource’s ordinary stock and will continue to trade under the ticker NI. This stock will get the CPG dividend.
NI ex-dividend. This stock will trade under the ticker NI WI and the holder is not entitled to receive the CPG distribution. The price of this stock will reflect the fact that it is not entitled to the distribution.
CPGX when-issued. This stock will trade under the ticker CPGX WI and will represent the Columbia Pipeline Group stock that will be distributed to NiSource shareholders on July 1.