J&J spinoff of KVUE - numbers not avail yet - but IPO is avail for trading

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Ps56k2
Ps56k2 Alumni ✭✭✭✭
edited July 2023 in Investing (Windows)

So…. I have JNJ stock -
and they recently spunoff their consumer products division
into a new stock KENVUE (KVUE).
It is avail for trading, and I bought a few shares to follow along.
BUT - J&J has not published the usual spinoff numbers to enter into Quicken, and therefore the stock has also not been distributed to existing J&J stockholders.

As I recall, when trying to use the SPINOFF transaction, Quicken gets upset if you already have created the new stock symbol…. as it wants to perform that action via SPINOFF.

SO - when the J&J numbers come out, and the stock gets distributed - I may just delete the entire KVUE stock and my existing single BOT entry, do the SPINOFF, and then re-enter a BOT for my separate purchase.

Comments

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
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    That should work.

    You could also edit the security name bought and then after the spin-off entry edit the bought security name to match spin-off security. That is two edits instead of a delete and re-enter of the bought transaction.

    It may be helpful to remember that the spin-off creates the new security without giving it a ticker. You need to subsequently add the ticker to the security detail.

  • mshiggins
    mshiggins SuperUser ✭✭✭✭✭
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    What is a BOT?

    Quicken user since Q1999. Currently using QW2017.
    Questions? Check out the Quicken Windows FAQ list

  • mshiggins
    mshiggins SuperUser ✭✭✭✭✭
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    Have never seen that acronym before. Is it something new in the subscription versions?

    Quicken user since Q1999. Currently using QW2017.
    Questions? Check out the Quicken Windows FAQ list

  • Ps56k2
    Ps56k2 Alumni ✭✭✭✭
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    no … it’s on my Schwab activity

  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭✭
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    I don't know how this one slipped by me. I usually am on top of stock splits and spinoffs but I sure missed this one.

    For the year, these are the only JNJ and KVUE transactions made by Fidelity that have been downloaded into my SMA account. (SMA = Separately Managed Account. It's kind of like a custom managed mutual fund.):

    Nothing about a spin off in here but I have received shares. But since the spin off occurred on 5/4 and the first BUY was on 5/11 I think it's fair to say that none of the KVUE shares I own were received from the spin off action.

    And doing a Reconcile Shares and checking Cash Balance shows both Fidelity and my account in Quicken are fully in agreement so it's pretty obvious that Fidelity does not yet have it factored into their system, yet, as well.

    Quicken Classic Premier (US) Subscription: R57.16 on Windows 11

  • Ps56k2
    Ps56k2 Alumni ✭✭✭✭
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    weird - I’ve not received any unsolicited KVUE shares like you have … from either of our Schwab accounts holding JNJ -

    Wonder what Fidelity is doing there … and if they show as “Bought” - where is the Cash coming from ?

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
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    No, BOT is not a Quicken acronym. It has been Buy or Bought for as along as I can remember.

    QWin Premier subscription
  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭✭
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    My shares are held in an actively managed SMA account which is customized to meet my investment objectives and risk tolerance. Fidelity bought those shares on my behalf based upon the investment tactics and strategy set up for me. Those buys had nothing to do with the spin off other than they were bought after the spin off date.

    Fidelity also holds a certain amount of cash (actually in a MMF) in the SMA that they use to fund buys and distributions. They will also coordinate sells of other securities held in the SMA to fund new buys as needed.

    You can read more about Fidelity's SMA offerings at https://www.fidelity.com/managed-accounts/separately-managed-accounts/overview . The one I have is the Fidelity Equity Income Strategy which strives to beat the S&P 500 with regard to dividends….but it is invested more broadly than in just the S&P 500. At any given time there are about 120-150 different stocks in my SMA with multiple trades (some large, some small) done every month.

    The SMA is one piece of the overall investment portfolio. For me it made a lot of sense to invest in because it is well diversified and the annual fee for me has been running about 0.56% which is quite competitive with standard mutual funds. When I first invested in it back in 2018 I nervously put in it about 40% of my total investable assets. It's performed so well that it now comprises about 65% of my portfolio….and I've put no additional funds in it and have been taking distributions from it since it's inception. And one of the nice things about it is that I do absolutely nothing regarding management of the account….other than to track performance and take monthly distributions.

    Quicken Classic Premier (US) Subscription: R57.16 on Windows 11

  • Ps56k2
    Ps56k2 Alumni ✭✭✭✭
    edited May 2023
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    @Boatnmaniac - Tnx for the info on your Fidelity Managed Account…

    And how the KVUE shares were Bought.

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited May 2023
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    I recall seeing BOT used in paper confirmations from various trading firms among my Dad’s paperwork. I think the industry was prone to 3-letter shorthand - BOT, SEL, DIV, etc.

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
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    Re Kenvue:

    My 15 minute research into this suggests that JNJ took their Consumer retail group and restructured it into a separate company (KVUE) wholly owned by JNJ. They then put out an IPO of KVUE putting about 10% of their shares into the public marketplace. Over time, they may sell more of those shares in the open market, or they might distribute them the shareholders in some fashion. One source suggested JNJ might fully distribute their remaining 90% of KVUE my mid to late 2023. As of now, I see no spinoff of those shares from JNJ to JNJ shareholders.

    It appears to me @Boatnmaniac actually bought those KVUE shares in the open market.

    (Full disclosure - at this time I do own some JNJ, but no KVUE shares. Further, my comments are only a lay-person's interpretations of internet based information. Do your own due diligence.)

  • Ps56k2
    Ps56k2 Alumni ✭✭✭✭
    edited May 2023
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    yes… was just curious how those shares showed up in his account - but being a Managed account…. They were explicitly bought by the managers.

    My orig comment was about doing a Quicken Spin-off into an already existing Quicken defined security… but will play with it when the actual distribution is made.

This discussion has been closed.