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KHD Buzz

posted Apr 4, 2010, 9:38 PM by Mohit Kumar   [ updated Apr 5, 2010, 7:30 PM ]
Yet again, one of our stocks has been in the Buzz! This time it is our weirdly named yet potent KHD Humboldt Wedag international! Last week, KHD announced a spin out. which would restructure KHD into two legal entities:

1)  A mineral royalty company, Terra Nova Royalty Corporation
2)  KID, an industrial plan technology, equipment and service company

You would have already noticed that the KHD ticker does not exist anymore. It would take some time for things to settle down in your brokerage account, but I would try to give a shot on how things may look for you:

1) You will get 1 share of TTT for every 1 share of KHD
2) You will get 1 share of KWG.F for every 3.5 shares of KHD.

So assuming you had 1000 shares of KHD on March 30th trading at $14.05
  • So your net value was 1000*14.05 = $14050 on March 30th
  • On April 1, you get 1000 shares of TTT for around $13.26 valuing $13260
  • You also get 285 shares of KWG.F at $6.75 valuing $1924
  • So your net value now becomes $13260 + $1924 = $15184
  • You outright gained $15184 - $14050 = $1134 ( around 8%) by the spin off instantly!
The spin off is intended to bring more focus on its business and generate more shareholder value, and for now we are happy with the move!

Stay tuned for our first pick of Q1, coming soon!!