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How to track Seadrill (SDRL) Reorganization in Windows Quicken 2017?

James J
James J Member ✭✭
edited July 2018 in Investing (Windows)
Seadrill Ltd (SDRL) emerged from chapter 11 bankruptcy just a couple days ago.  Part of the resulting reorganization has caused the number of outstanding share to be drastically reduced, from 504 million shares to just 100 million according to Motley Fool and Seeking Alpha. 

Has anyone already processed this in Quicken?

Comments

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited July 2018
    I haven't looked deeply into this but based on the Motley Fool write-up it would appear that what you've suffered is essentially a reverse split of 0.0037345 shares for 1.

    That same figure is used here:

    http://www.seadrill.com/investor-relations/news/pr-story.aspx?ResultPageURL=http://cws.huginonline.c...
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited July 2018
    A)  I am not a shareholder and have no dog in this show.  These are my guessed opinions only.  I am not a financial pro ... yada, yada.

    B)  From the cited press release: 
    "The Company has received approval to list its new common shares with the new CUSIP number G7998G 106 (the "New Common Shares") on the New York Stock Exchange (the "NYSE") under the same NYSE ticker symbol "SDRL" as the Company's existing common shares (with the CUSIP G7945E 105) (the "Existing Shares").  Subject to the relevant approvals, the Company also intends to have its equity listed on the Oslo Stock Exchange (ISIN BMG7998G1069)."
    So in Quicken, I would change the name of the old existing SeaDrill to something like SeaDrill (Old) and I would change its ticker to SDRL(old).  In changing the ticker, I would opt to copy old prices to new ticker and to delete the prices under the old ticker.  If you had been downloading that holding from a brokerage, I would uncheck the box about Matched to online security (Edit Security Details)

    I would then create a new company (SeaDrill - New, or similar) and assign its ticker as SDRL.

    I would then try to Corporate Acquisition whereby New acquires Old at the 0.0037345 share ratio.  Check that the subsequent share holdings are correct.  I did not read closely enough, but I expect any fractional shares would not be issued.  After the Corp Acquisition, sell any net fractional share for the cash-in-lieu amount you did (or will) receive.  

    All that would be after making a back up and before downloading (or acceopting) relevant transactions from the brokerage.

    All that represents about 10 minutes of thought.  You should apply more than that.   
  • James J
    James J Member ✭✭
    edited July 2018
    Thanks for the replies.  It does look like a reverse stock split, but I'm thinking I would not want to use that because, according to the company's explanation of events, the new stock will be adopting  "fresh start" reporting.  I'm new to this, but it sounds as if the new stock will be considered completely different than the old, adn for that reason it'd probably be better to reflect this difference in quicken by creating two entirely separate stocks as lurker mentioned.  In the end, I discovered the question for me is actually moot. I only owned 16 shares of the original stock anyway.  So, with the conversion rate of 0.00374** for each 1 common share, my original stock amounted to only a small fraction of the new common shares.  My brokerage cashed me out.  I don't use Quicken to track stock sales, losses, gains etc for taxes or anything, so I'm not too worried about it.    I ended up going with what my brokerage reported for the SDRL event.  I just accepted the transactions, which were simply a "remove shares" then a "deposit cash".
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited July 2018
    James J said:

    Thanks for the replies.  It does look like a reverse stock split, but I'm thinking I would not want to use that because, according to the company's explanation of events, the new stock will be adopting  "fresh start" reporting.  I'm new to this, but it sounds as if the new stock will be considered completely different than the old, adn for that reason it'd probably be better to reflect this difference in quicken by creating two entirely separate stocks as lurker mentioned.  In the end, I discovered the question for me is actually moot. I only owned 16 shares of the original stock anyway.  So, with the conversion rate of 0.00374** for each 1 common share, my original stock amounted to only a small fraction of the new common shares.  My brokerage cashed me out.  I don't use Quicken to track stock sales, losses, gains etc for taxes or anything, so I'm not too worried about it.    I ended up going with what my brokerage reported for the SDRL event.  I just accepted the transactions, which were simply a "remove shares" then a "deposit cash".

    The proper transaction would have been to sell the 16 shares for the cash received.
This discussion has been closed.