Current opinion on j&j spinoff Kenvue ? Worth it?

[wann]

I received an email from fidelity notifying me of J&J’s spinoff with Kenvue. J&J is offering $107.53 for $100 of J&J. Is this worth it? Whats stopping me from buying 50-100 shares of J&J now and swapping 50-100 shares and then selling them for $753 profit? Swap is supposed to be tax free? Whats current thinking on this?

 

[seeker504]

@wann Noone can say. The biggest things are:

- J&J will be the "growth" stock - more new product, biotech, etc. J&J however will also retain the significant anchor of the talc lawsuits in US and Canada.

- Kenvue will be the "value" stock - expect a continuation of J&J's dividend, selling band-aids and all of that stuff. Kenvue gets the rest of the world talc lawsuits.

As for the free money, the market will also know this, and the prices will adjust for this difference. I would not expect free money on day of exchange. If you try to dump your Kenvue stock after the exchange it will be priced accordingly.

 

[kelland]

@wann The exchange won’t be instant. There will be a few day delay. The stocks can move and wipe out any benefit of the discount between when it happens and when your shares are available to sell

 

[rick83]

@wann Isn’t there a record date for the offer?

 

[sparker]

@wann I wonder when you get the shares. You'd have to buy J&J and then unload before 8/18 when they plan to saturate the market with 1.7B shares of their own Kenvue shares.

 

[darcyerin]

@wann Discussed about a week ago. Here is the post.

 

[kavi0808]

@darcyerin Discussed two weeks ago too, here

 

[aregbesola]

@wann Infinite money glitch discovered, you broke the internet

 

[masonmatt1000]

@wann The announcement occurred 3 weeks ago, if you look you'd notice that KVUE stock price has already dropped around 7% since the announcement.