# JNJ splitoff exchange **URL:** \ **Category:** Jim Royal\ **Created:** [July 24, 2023, 8:26pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733 "2023-07-24T20:26:49Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![XMFRoyal](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/xmfroyal/32/11_2.png) [@XMFRoyal](https://discussion.fool.com/u/XMFRoyal)\ **Post date:** [July 24, 2023, 8:26pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/1 "2023-07-24T20:26:49Z")
[https://www.envisionreports.com/jnjseparation/2023/JNJSeparationjul24v2/index.html?voting=true](https://www.envisionreports.com/jnjseparation/2023/JNJSeparationjul24v2/index.html?voting=true) Jim ---
**Author:** ![rtichy](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/rtichy/32/771_2.png) [@rtichy](https://discussion.fool.com/u/rtichy)\ **Post date:** [July 25, 2023, 11:32am UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/2 "2023-07-25T11:32:25Z")
There’s an odd-lot provision in there, but it looks like they’re going to drill into your ownership stake to see whether or not you get prorated, if proration occurs. Just tendering 99 shares of your existing JNJ investment will not be enough to force the exchange at 99 shares… (see p. 92 in Prospectus, paragraph 2 of “Odd-Lots”.) ---
**Author:** ![TMFMurph](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/tmfmurph/32/4274_2.png) [@TMFMurph](https://discussion.fool.com/u/TMFMurph)\ **Post date:** [July 25, 2023, 1:14pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/3 "2023-07-25T13:14:19Z")
Hi Jim! Any opinion about how good or bad a deal this is for JNJ holders? Thanks! Murph ---
**Author:** ![XMFRoyal](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/xmfroyal/32/11_2.png) [@XMFRoyal](https://discussion.fool.com/u/XMFRoyal)\ **Post date:** [July 25, 2023, 10:39pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/4 "2023-07-25T22:39:15Z")
Murph, I haven’t looked at the individual companies. I’m looking just at the built-in discount that they offer on the exchange. Jim ---
**Author:** ![XMFRoyal](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/xmfroyal/32/11_2.png) [@XMFRoyal](https://discussion.fool.com/u/XMFRoyal)\ **Post date:** [July 25, 2023, 10:41pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/5 "2023-07-25T22:41:43Z")
Rob, From what I read, you’re likely good if you have 99 shares or fewer and tender them all. The people who won’t get even their odd lot filled are those who have more than 99 shares and those who don’t tender their full holdings, even if it’s less than 99 shares. So if your only holding is 99 shares and you tender them all, then you’re highly, highly likely to get them all taken. Jim ---
**Author:** ![VinnieG57](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/vinnieg57/32/3387_2.png) [@VinnieG57](https://discussion.fool.com/u/VinnieG57)\ **Post date:** [August 11, 2023, 2:37pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/6 "2023-08-11T14:37:56Z")
I have reloaded the link above from time to time and I don’t see it populated with conversion ratio, etc. Am I missing something? Thanks, Vince ---
**Author:** ![XMFRoyal](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/xmfroyal/32/11_2.png) [@XMFRoyal](https://discussion.fool.com/u/XMFRoyal)\ **Post date:** [August 11, 2023, 7:49pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/7 "2023-08-11T19:49:01Z")
Vince, yeah, it’s frustrating how they set that up. Use this link and compare to the one you’re using and you’ll spot the difference (the date). They change the date every day, so you’ll need to keep updating the URL. [https://www.envisionreports.com/jnjseparation/2023/JNJSeparationaug10/index.html?voting=true](https://www.envisionreports.com/jnjseparation/2023/JNJSeparationaug10/index.html?voting=true) Jim ---
**Author:** ![VinnieG57](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/vinnieg57/32/3387_2.png) [@VinnieG57](https://discussion.fool.com/u/VinnieG57)\ **Post date:** [August 14, 2023, 8:47pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/8 "2023-08-14T20:47:05Z")
Given that KVUE fell by a bigger % than JNJ today, the first day of the averaging period, the upper limit was reached and breached - but barely on the rolling 3 day basis. Let’s see what transpires tomorrow. Vince ---
**Author:** ![XMFRoyal](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/xmfroyal/32/11_2.png) [@XMFRoyal](https://discussion.fool.com/u/XMFRoyal)\ **Post date:** [August 14, 2023, 9:47pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/9 "2023-08-14T21:47:18Z")
Yep, we’ll see what happens in the next couple days. I need to lock in my position still. Jim ---
**Author:** ![VinnieG57](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/vinnieg57/32/3387_2.png) [@VinnieG57](https://discussion.fool.com/u/VinnieG57)\ **Post date:** [August 14, 2023, 10:02pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/10 "2023-08-14T22:02:53Z")
> [@XMFRoyal](#): > > I need to lock in my position still. E\*Trade is allowing changes up until Thursday PM, so that is a nice window. I elected to exchange my odd lot, but have time to back out. Vince ---
**Author:** ![VinnieG57](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/vinnieg57/32/3387_2.png) [@VinnieG57](https://discussion.fool.com/u/VinnieG57)\ **Post date:** [August 16, 2023, 5:55pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/11 "2023-08-16T17:55:07Z")
This is advanced topics for me so check my thinking please. It looks like the 8:1 ratio is going to hold or close to it. To protect that arb gain on the odd lot exchange, should one short 800 shares of KVUE, assuming a 99 share odd lot of JNJ? If KVUE falls, the short profits offset the loss and if KVU rises, the stock’s gain pays for the additional dollars to buy back the stock. Thanks, Vince ---
**Author:** ![XMFRoyal](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/xmfroyal/32/11_2.png) [@XMFRoyal](https://discussion.fool.com/u/XMFRoyal)\ **Post date:** [August 16, 2023, 6:09pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/12 "2023-08-16T18:09:54Z")
Yeah, once we know the exchange for certain then you can know exactly how many shares to offset with a short sale and lock in a profit today. I was finding no immediate shares available for borrow at IB yesterday, but maybe some shares are out there today. When you receive the KVUE shares from the exchange in the account, they’ll simply offset the short position. Also, be sure that you do not own in aggregate more than 99 shares (in this account or others), because you’ll need to tender your full holdings (and not more than 99 shares) to get the oddlot priority. Otherwise, you’ll be prorated, with estimates at just 30% of holdings being accepted. Jim ---
**Author:** ![VinnieG57](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/vinnieg57/32/3387_2.png) [@VinnieG57](https://discussion.fool.com/u/VinnieG57)\ **Post date:** [August 17, 2023, 2:08pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/13 "2023-08-17T14:08:17Z")
> [@XMFRoyal](#): > > Yeah, once we know the exchange for certain then you can know exactly how many shares to offset with a short sale and lock in a profit today. My calculations say we get 797 shares of KVUE for 99 shares of JNJ. ---
**Author:** ![VinnieG57](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/vinnieg57/32/3387_2.png) [@VinnieG57](https://discussion.fool.com/u/VinnieG57)\ **Post date:** [August 17, 2023, 2:18pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/14 "2023-08-17T14:18:34Z")
> [@XMFRoyal](#): > > Also, be sure that you do not own in aggregate more than 99 shares (in this account or others), because you’ll need to tender your full holdings (and not more than 99 shares) to get the oddlot priority. I had some shares in an IRA and I guess that is ‘beneficial ownership’ so I will unload them. ---
**Author:** ![VinnieG57](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/vinnieg57/32/3387_2.png) [@VinnieG57](https://discussion.fool.com/u/VinnieG57)\ **Post date:** [August 17, 2023, 4:20pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/15 "2023-08-17T16:20:29Z")
The exchange takes place on Monday - so when should we short? ---
**Author:** ![XMFRoyal](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/xmfroyal/32/11_2.png) [@XMFRoyal](https://discussion.fool.com/u/XMFRoyal)\ **Post date:** [August 17, 2023, 5:49pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/16 "2023-08-17T17:49:20Z")
Any time you want to lock in the given spread. I’m still not seeing shares available to short at IB. Jim ---
**Author:** ![VinnieG57](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/vinnieg57/32/3387_2.png) [@VinnieG57](https://discussion.fool.com/u/VinnieG57)\ **Post date:** [August 17, 2023, 8:58pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/17 "2023-08-17T20:58:52Z")
They were available at ETrade today. ---
**Author:** ![XMFRoyal](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/xmfroyal/32/11_2.png) [@XMFRoyal](https://discussion.fool.com/u/XMFRoyal)\ **Post date:** [August 21, 2023, 3:54pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/18 "2023-08-21T15:54:15Z")
> **[Johnson & Johnson Announces Preliminary Results of Kenvue Inc. Exchange...](https://finance.yahoo.com/news/johnson-johnson-announces-preliminary-results-102000708.html)** > > NEW BRUNSWICK, N.J., August 21, 2023--Johnson & Johnson (NYSE: JNJ) today announced that, based on preliminary results, its previously announced offer to its shareholders to exchange their shares of Johnson & Johnson common stock for shares... Prelim results. ---
**Author:** ![VinnieG57](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/vinnieg57/32/3387_2.png) [@VinnieG57](https://discussion.fool.com/u/VinnieG57)\ **Post date:** [August 21, 2023, 5:48pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/19 "2023-08-21T17:48:57Z")
I have looked to see when the exchange will actually take place without success. Lots of moving parts here. I had sold my JNJ shares in my IRA at prices above 172 in case they qualified as beneficially owned shares. Over the weekend, I wondered if i should have bought a call to capture any upside in those shares, since I wanted to buy them back later. I successfully shorted the KVUE at 23 and change and those shorts were profitable last Friday. The indicative gain on exchange was down to 5.5%… Then it all changed today as JNJ shares fell and KVUE rose. Some suggest that many folks were Buying JNJ last week and shorting KVUE to take advantage of the odd lot guaranteed exchange and that led to today’s movement on both stocks. Anyway, I might be able to hit the daily double and buy back JNJ at a lower price to replace my beneficial shares and l already locked in the 7.5% gain for the exchange. As always, thanks, Jim! ---
**Author:** ![rtichy](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/rtichy/32/771_2.png) [@rtichy](https://discussion.fool.com/u/rtichy)\ **Post date:** [August 21, 2023, 6:45pm UTC](https://discussion.fool.com/t/jnj-splitoff-exchange/94733/20 "2023-08-21T18:45:39Z")
I saw this this morning… look at the volumes created by the exchange offer in the bottom bar chart! I’d love to know what the put contract for JNJ @ $160 expiring Friday was back when the exchange was announced… ![image](https://us1.discourse-cdn.com/motleyfoolfree/original/3X/5/1/510dd51e6d2fbec3b857ab4c070f01ff3d22b828.png) [Next page](https://discussion.fool.com/t/jnj-splitoff-exchange/94733.md?page=2)