just a guess, but I think mgmt. will target about 3% yield, at $10 a share that would be 7.5 cents per quarter
that would give some support to shares while preserving cash during trough market conditions
what was so different about Peltz? he wanted to slice the cheese differently, would have been the same result
I'm seeing shares in Fidelity, but no share price yet. Probably takes a day for the brokerages to sort things out.
the market seems to be questioning the premise that splitting a company into pieces creates shareholder value
a share of CC gives an ownership stake in different assets than a share in DD
CC will be valued based on earnings potential and balance sheet of CC assets not on 1/6th of current DD value
post split combined total market cap of CC plus DD should be about the same as the pre-split market cap, but you can't simply split the value according to the number of shares
look at the investor presentation on DD's website and you can start to estimate a value for CC
then subtract that from DD to get a post spin off valuation
10 or 12 Enterprise to EBITDA ratio can be expected for CC
subtract the net debt to get the market cap
then divide by number of shares to get share price
I'll stick with my guess of $38 +/- 5
don't forget about the 5 to 1 share ratio, CC + DD share prices post spin will not equal the DD price before the spin out
the investor presentation has an adjusted EBITDA figure of $895 million for 2014
CC is being spun off at a low point for profits. If you figure 2 to 3 Billion of Debt and an Enterprise to EBITDA ratio of 10 or 11, you come up with a market cap range of $6 to $8 Billion for CC.
Yahoo Finance says there are a little over 900 million shares outstanding for DD, so about 180 million shares of CC at 5 to 1.
based on that quick math I'm expecting a share price somewhere between $33 and $44 for CC with DD dropping to be between $54 and $57