The Daily Dow
Wednesday, July 17, 1996
by Robert Sheard

LEXINGTON, Ky. (July 17): Thanks to a Foolish reader, I have more information on the "official" calculations you'll need if you're a 3M <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MMM)") else Response.Write("(NYSE:MMM)") end if %> holder who is receiving shares in the Imation <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:IMN)") else Response.Write("(NYSE:IMN)") end if %> spin-off.

As I wrote in this column yesterday, 3M shareholders of record at the close on June 28 will receive 1 share of Imation stock for every 10 shares they held of MMM. The stock certificates were scheduled to be mailed this week and Imation stock began trading on its own yesterday.

According to the company, you'll need the following figures to revise your cost basis in your MMM shares and establish the basis in your IMN shares:

To calculate your new MMM cost basis, multiply your original MMM basis by 0.96059. To calculate your cost basis for the new IMN shares, multiply your original MMM cost by 0.03941.

For our model then, with an original cost basis of $9,889.88 for the 149 shares of MMM, the revised cost basis should be $9,500.12, or $63.759 per share. And the cost basis for the new Imation shares is $389.76, or $26.158 per share. The fractional share (0.9 shares) will be paid in cash, worth $23.54 and the portfolio will hold the 14 shares until it's annual update in January.

If I run across any more information on handling the spin-off, I'll be sure to pass it along.

Transmitted: 7/17/96

THE FOOLISH FOUR MODEL (7/17/96)  

          Day    Week  Quarter  Year  History
Fool-4  -0.29%  -3.22%  -4.59%  7.86%  7.86%
DJIA     0.34%  -2.43%  -4.91%  5.08%  5.08%
S&P 500  0.91%  -1.87%  -5.48%  2.92%  2.92%
NASDAQ   3.15%  -1.53%  -8.30%  3.28%  3.28%


Bought   #   Stock     In At   Now    Change

1/2/96  380  Chevron   52.38  57.13    9.07%
1/2/96  148  E. Kodak  67.00  72.88    8.77%
1/2/96  142  DuPont    69.88  74.75    6.98%
1/2/96  149  3M        63.76  63.00   -1.19%
7/16/96  14  Imation   26.16  23.50  -10.16%

Bought   #   Stock         Cost       Value       Change

1/2/96  380  Chevron    $19,902.50  $21,707.50  $1,805.00      
1/2/96  148  E. Kodak    $9,916.00  $10,785.50    $869.50     
1/2/96  142  DuPont      $9,922.25  $10,614.50    $692.25     
1/2/96  149  3M          $9,500.09   $9,387.00   $(113.09)    
7/16/96  14  Imation       $366.21     $329.00    $(37.21)    

      CASH      $1,106.15        
      TOTAL    $53,929.65         



Transmitted: 7/17/96

      
      

      
      

        

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