"I was surprised shorts did not cover since they will now be short SSE"
They have until the close of trading on June 30th to cover without having to deliver SSE shares. The ex-date isn't until July 1.
"So it is not like a dividend, in that the record date means nothing"
"holders as of the record date are obligated to pass along the shares of SSE if they sell before the distribution date"
Yes, but even if they sell ON the distribution date, because the ex-date is the first trading day after the distribution date.
"I understand that."
No, actually you don't.
"with the record date in the past, new positions tomorrow (either short or long) won't have any entitlement / obligation for SSE."
Not true. The entitlement/obligation remains until the ex-date, which is July 1. That's specifically why the company's press release of June one says, "Shareholders who sell their shares of Chesapeake common stock in the “regular-way” market (that is, the normal trading market on the NYSE under the symbol “CHK”) after the record date and on or prior to the distribution date will be selling their right to receive shares of SSE common stock in connection with the distribution."
And since CHK holders who sell before July 1 will also be selling their right to receive the SSE shares, it is the buyers of CHK who then get the SSE. So short selling before July 1 obligates the short seller to deliver the SSE shares.
It is the ex-date, not the record date that determines who gets any distribution, whether it be cash, spinoffs, rights or warrants. The difference in this case is that the ex-date is after both the record date and distribution date.
"Has the SSE record date been resistance, or support?"
The record date has no bearing on the price of CHK. It's the ex-date that affects the price, not the record date.
"Guess we'll find out in the morning."
Yes, you'll find out in the morning that it's been of no effect.
SSE stays as a part of CHK until the ex-distribution date, which is July 1.
It's all spelled out in the June 9 press release.
"Holders of record as of the ex-dividend date get the dividend."
No, you're confusing dividend dates. Holders of record as of the record date get the dividend. If you sell the stock on one of the two days prior to the ex-date, you'll still be a shareholder of record on the ex-date, but you will not be a shareholder of record on the record date.
Distribution date is June 30. If you bought CHK before June 17th, you will get the SSE shares on the distribution date. If you bought/buy CHK from June 17th through June 30, you'll get the SSE shares about July 3.
"for the love of Mary Joseph and the baby Jesus .. If you owned the stock as of the close today you get the dividend, you can sell anytime after the bell opens tomorrow and you still get the dividend"
You can love whoever you want, but if you sell tomorrow, you most certainly do not get the dividend. The ex-date is Thursday, June 19, not tomorrow. With a record date of June 23, the ex-date cannot be the 18th. Do you 'spose that's why all the reporting agencies say the ex-date is the 19th?
You'll figure it out tomorrow ... or the next day. Assuming, of course, you're not too busy loving whoever it is you do instead of studying up on how dividends work.
"The following is copied from the Resoltions of Nokia AGM 2014: ... The ex-dividend date is June 18, 2014"
And that proves what, exactly?
The following is copied from the Chicago Board Options Exchange, who gets their dividend information directly from the stock exchanges: Ex-Dividend Date 06/19/2014
"Nokia website: Dividend JUNE 18,2014 EX-DIVIDEND DATE"
Are you aware that companies are not allowed to set their own ex-dates? Are you also aware that the NYSE has set June 19th as the ex-date, not the 18th?
The NOK website is wrong. The ex-date is the 19th.
"By my calculations should price at $2.10 on July1."
Well, it's expected to start trading next week, so you'll know the price range long before July 1.
"Zacks and IBD should NOT have issued NR's without the extra info that the company has on their website.
It leads one to believe that the SSE will be issued to owners of record just as the ex-dividend date and dividends work."
I agree. It's terribly confusing and I don't know why FINRA doesn't require companies to be more clear.
It's the closing price of SSE when-issued trading on the distribution date that determines the share price adjustment for CHK on the ex-date (applied proportionally to the spinoff ratio). That's why SSE has to be trading before the ex-date can happen.
Those who are record holders as of the record date own shares that continue to trade the regular way. Those are the shares that will trade with the right to receive the spinoff. The CHK when-issued shares will trade at a lower price than the CHK shares trading the regular way, to account for not including the right to the spinoff.