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SAIC, Inc. Message Board

  • colinm8 colinm8 Dec 31, 2012 10:57 AM Flag

    Does anyone know how the company split will work for stocks?

    I know they haven't announced it but I thought some of you experienced traders might have a clue. Say I have 5,000 shares of SAI. Will my shares be split down to 2,500 for each company at the same price or will I have 5,000 shares of each company at half the price?

    Thoughts? Speculations?

    Thanks and have a good New Years everyone.

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    • I haven't seen any formal announcement from the company, but it's probably a safe bet (no guarantees) that you will end up with some equal amount of shares in each of the two new companies. If history teaches us anything, your total value of the shares in the new companies will be somewhat less than your current value of shares in SAIC. Does anyone know if each of the two new companies will continue paying dividends after the deal is done?

      Sentiment: Hold

    • It's a plus...

      It is an admission that current and pass management is ineffective in managing the company's OCI issues and overhead in a fashion to keep the company competitive.

      So they get a General, who sits on the BOD to EXECUTE a change, probably driven from the BOD.

      Break the company up, put all the profitable parts in one company. Put all the declining work in another company, which has the saluatory effect of also addressing some of their incompetence in handling OCI issues... and wiola!

      My guess is the good SAIC will prosper as a result, and the bad SAIC will eventually be merged, sold or go under.

    • You'll be lucky to have the same total value for all your shares however the distribution math works. My gut tells me this split is going to be a financial disaster! Good luck and happy new year.

      Sentiment: Strong Buy