Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : HWP -- Hewlett Packard -- Ignore unavailable to you. Want to Upgrade?

To: dbernoulli who wrote (3404)	3/8/2000 8:58:00 PM
From: kevin hudson	Respond to of 4722

>> When HWP goes ex-Agilent the HWP stock should theoretically drop by 0.373 times the price of Agilent. In this case, it will be interesting to see what happens if the price of Agilent continues to rise until it is 1/.373 times the price of HP. :-)

To: dbernoulli who wrote (3404)	4/9/2000 5:05:00 AM
From: dbernoulli	Read Replies (2) \| Respond to of 4722

A question for the tax accountants: How does one determine the cost basis for the distributed Agilent shares? Say that HWP was originally purchased for $70. How much of that $70 represents the cost of Agilent? Thanks.

To: dbernoulli who wrote (3404)	4/11/2000 8:03:00 PM
From: Topannuity	Read Replies (1) \| Respond to of 4722

Discuss the strategy of buying HWP on May 2 and selling on May 3rd in order to get A shares. How would that work?? Will HWP drop by .37 the night of the distribution? Is the price of A in the HWP market cap...Will the same thing happen to HWP that happened to COMS with the PALM spinoff? How would you go about being eligible to get the A spinoff? Buy HWP on May2 and sell on May3? If you short (hedge) your HWP purchase in a different account, would the short position have to deliver the A distribution to the buyer on the other side of your short? Monday April 10 5:12 PM ET Agilent Shares Tumble After HP Sets Spin Off Date LOS ANGELES (Reuters) - Shares of Agilent Technologies (NYSE:A - news) fell sharply on Monday after parent Hewlett-Packard Co. (NYSE:HWP - news) late Friday set June 2 as the date for spinning off to shareholders its remaining 84-percent stake. Shares of Palo, Alto, Calif.-based Agilent closed down 16 1/4 to 106 13/16 on the NYSE. The company's shares had climbed 18 1/4 to end at 123 1/16 on Friday. HP said after the market close on Friday that 0.37 shares of Agilent will be distributed on June 2 for each HP share held as of May 2. ``That's a huge overhang -- about 380 million shares that will be hitting the market. In some other tech IPOs there is a thin float and the other shares never come to market,' said Robert Maire, an analyst at Bear Stearns. Diversified technology company Hewlett-Packard sold 16 percent of Agilent, which makes test and measurement products for industries like semiconductors and healthcare, in an initial public offering last November. HP had said it would spin off the remainder of Agilent in June or July. ``People were kind of ignoring it because it was in the future, but now they can't,' Maire said. Hewlett-Packard announced in March 1999 a strategic realignment, creating two separate companies, one retaining the company's name and the other named Agilent. Shares of Hewlett-Packard closed down 5 13/16 at 147 1/4 in New York Stock Exchange trading on Monday.