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GE that was under Jack Welch has basically died and this is a new GE under Culp - he had retired from Danaher but was called upon to fix GE. He has denied interest in fixing Boeing but is rumored to be on a short list of candidates.
I'm trying to come up with a candidate to take on that Boeing task with all of the pending lawsuits, investigations and what not goings on. It'll be interesting to see who they pull out of the hat.
If you own GE, then you know own GEHC and GEV. We’ve got GE shares that we’ve own for 40-50 years. It’s finally starting to regain some of the value it lost over the past 20 years. My wife’s grandfather gave her the original shares, and she hasn’t wanted to sell for sentimental reasons. If we do sell, figuring out the cost basis would be a nightmare because we reinvested dividends until the past few years when the yield was cut.
I received GEHC and GEV from owning GE. I understood these to be tax free spin offs in which case the cost basis in my GE shares should be allocated to GEHC and GEV proportionate to the fair value on the date of distribution. Looking at my account, GE has 163%, GEHC has 58%, GEV has 115% gain, respectively. The newest one is GEV which had more appreciation in stock price than GE since GEV debut on March 28. Though charts show GEV stock price from March 28, evidently the spin off happened before the market open on April 2. GEV stock price has lost about 10% (more than 8% just today) while GE stock price appreciated about 5% since the spin off. I am not sure why GEV gain is so much lower than GE's gain. What am I missing?
(I did not pay attention to the cost basis after GEHC spin off.)
Just want to make sure I adjust / correct the cost basis in my brokerage account if the brokerage is not doing it correctly.
Despite a good sendoff by GE and generally positive analyst recommendations, GEV lost power today (i.e. sunk). It made the new-lows list today, -17% from high in its rather short trading life.
do you mind sharing if in your brokerage account, the gain shown for GE is only about 15% higher than that for GEV? More info in my previous post in this thread.
@BaluBalu, GEV started trading LAST week as GEV.wi (when-issued), so there is a few days of history prior to 4/2/24.
Schwab still shows cost basis of $0 for GEV, so % shown for GE, GEHC, GEV aren't meaningful. Moreover, % for GE will depend on the purchase date(s) and any trading history.
We have to wait a few days before Schwab will auto-adjust the cost basis for GE and GEV. It did it for GEHC spinoff.
Thanks, @Yogibearbull. It would be easier for us to check GEV vs GE cost basis by the relative unrealizes gain because it is a recent spin. I would use April 2 opening prices to see if the brokerages are allocating the cost basis between GE and GEV properly. I do not worry about a few %ages approximation as my position is not in millions of $.
P.S.: Thanks to Larry Culp for making us some money.
Comments
So, earlier, I got some GEHC.
Now will get 1 GWV for 4 GE.
Old GE = New GE + GEHC + GEV
GE that was under Jack Welch has basically died and this is a new GE under Culp - he had retired from Danaher but was called upon to fix GE. He has denied interest in fixing Boeing but is rumored to be on a short list of candidates.
which had more appreciation in stock price than GE since GEV debut on March 28. Though charts show GEV stock price from March 28, evidently the spin off happened before the market open on April 2. GEV stock price has lost about 10% (more than 8% just today) while GE stock price appreciated about 5% since the spin off. I am not sure why GEV gain is so much lower than GE's gain. What am I missing?(I did not pay attention to the cost basis after GEHC spin off.)
Just want to make sure I adjust / correct the cost basis in my brokerage account if the brokerage is not doing it correctly.
Foot note of this filing gives the dates -
http://archive.fast-edgar.com/20240404/AG2ZBQ22Z222RZP2222E2Z42NLKSZK22BA62/
do you mind sharing if in your brokerage account, the gain shown for GE is only about 15% higher than that for GEV? More info in my previous post in this thread.
Schwab still shows cost basis of $0 for GEV, so % shown for GE, GEHC, GEV aren't meaningful. Moreover, % for GE will depend on the purchase date(s) and any trading history.
We have to wait a few days before Schwab will auto-adjust the cost basis for GE and GEV. It did it for GEHC spinoff.
P.S.: Thanks to Larry Culp for making us some money.