I read that Gamestop shares are being distributed to owners of record of BKS shares as of November 2, to the tune of about 0.4 shares for each BKS share. Would this not reduce the price of BKS shares by about $8 -- I was expecting to see this happen around Nov. 2, and was wondering if any of you have any additional insight. Thanks
Get ready for an early Christmas gift after the close. Holders of BKS stock will receive 0.424876232 shares of GME.B for every BKS share held. GME trades today near $22.50, so the distribution is worth about $9.56 per BKS share, although the GME.B shares have more voting rights and should be worth a bit more than regular GME. BKS shares are expected to fall by as much to the $26 range.
It's November 12th that the distribution will be made. Bks should decline by about $9 then based upon the current price of GME. Our GME shares, though, --GMEB-- are supervoting shares and should trade maybe 5% higher than GME, making the Bks stub worth that much less initially. My hope, and the reason I bought Bks at 33.28 a couple of weeks ago, is that after the distribution and likely selling in GMEB by those not wanting to hold it, the sum of the parts will be greater than the whole. No guarantees, but that often happens with spin-offs.