as of 5pm est yesterday to get the NRZ spinoff shares when issued around the 15th of May. So how is it that NCT is trading up today? I assume I'm not understanding something as I see anyone buying NCT today is not going to get the spinoff shares of NRZ. That makes for very high priced NCT At 12 bucks +. Like I said I must be missing something.....anyone??
"you must be a shareholder of record as of 5pm est yesterday to get the NRZ spinoff shares when issued around the 15th of May."
Yes. The key phrase is "the 15th of May." If you buy NCT up to, and including the 15th of May, you would still receive the spinoff, but not on the 15th of May. You would receive the spinoff on the due bill settlement date instead.
yieldhog99 has it right.
I was confused as well so I emailed & I got this from TDAmeritrade...Thank you for your inquiry. I can confirm a late ex-date of 5/16/13 has been established on the NCT spinoff. You have to hold your position until that date to receive the additional shares as this is the date the market will adjust the stock price. Please contact us again if you have any additional questions. Didn't think it was correct and emailed fro a different acct and got the same answer.
From their press release: The New York Stock Exchange (“NYSE”) has informed Newcastle that, in connection with the spin-off, it will establish three trading markets beginning on May 2 and continuing through the Distribution Date (including May 2 and the Distribution Date):
In the “regular way” market, shares of Newcastle common stock will trade with the right to the New Residential shares distributed on the Distribution Date.
In the “ex-dividend” market, shares of Newcastle common stock will trade without the right to the New Residential shares distributed on the Distribution Date.
In the “when-issued” market, the right to the New Residential shares distributed on the Distribution Date will trade.
Looks like the "regular way" you will have the NRZ shares until 5/15. In the x/d market they're trading without the right. I wish the SEC would give them the approval already. I'd feel a lot more comfortable that things will go along smoothly